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Level 3 Bids for GSA's Networx Program

Level 3 Communications (NASDAQ: LVLT) today announced that it has bid on the General Services Administration's (GSA) Networx Enterprise program. The Networx program encompasses a broad range of data, voice, and security services available to all government agencies and other authorized buyers. GSA's current schedule calls for Networx Enterprise contract awards to be made in September, 2006.

Level 3's proposal responds to all nine mandatory services outlined in GSA's Networx Enterprise procurement, as well as certain optional services that are core to the Level 3 network such as dark fiber and wavelength services. Level 3's proposal has broad geographic coverage to address the network needs of Federal agencies across the U.S. Level 3's bid includes a team of companies that will supplement Level 3's offerings for certain RFP requirements relating to security services and managed services, as well as meet the small business subcontracting objectives of the RFP.

"We believe that government agencies expect a program with Networx's breadth and depth to provide real choice when it comes to network services," said Jerry Hogge, senior vice president and general manager, Government Markets for Level 3. "Networx will be a preeminent program through which federal agencies will be able to transition their legacy telecommunications infrastructure to optical and IP-based services. As such, it is an ideal time for Level 3 to bring its high quality, highly secure, and physically diverse suite of network services to the Networx competition."

Level 3 entered the Federal government market three years ago and established its Government Markets organization's headquarters in Herndon, Va. Level 3 currently provides a broad range of IP, transport, collocation, and dark fiber services to over 30 Federal agencies as well as to top academic research facilities across the United States.

About Level 3 Communications

Level 3 (NASDAQ: LVLT) is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL partners. The company offers a wide range of communications services over its 23,000-mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, and patented softswitch managed modem and voice services. Its Web address is

The company offers information services through its subsidiaries, Software Spectrum and (i)Structure. For additional information, visit their respective Web sites at and

The Level 3 logo is a registered service mark of Level 3 Communications, Inc. in the United States and/or other countries. Level 3 services are offered by wholly owned subsidiaries of Level 3 Communications, Inc.

Forward-Looking Statement

Some of the statements made by Level 3 in this press release are forward- looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that its primary risk factors include, but are not limited to: developing new products and services that meet customer demands and generate acceptable margins; increasing the volume of traffic on Level 3's network; overcoming the softness in the economy given its disproportionate effect on the telecommunications industry; integrating strategic acquisitions; attracting and retaining qualified management and other personnel; successfully completing commercial testing of new technology and information systems to support new products and services, including voice transmission services; ability to meet all of the terms and conditions of our debt obligations; overcoming Software Spectrum's reliance on financial incentives, volume discounts and marketing funds from software publishers; reducing downward pressure of Software Spectrum's margins as a result of the use of volume licensing and maintenance agreements; and reducing rate of price compression on certain of the Company's existing transport and IP services. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this release should be evaluated in light of these important factors.


SOURCE: Level 3 Communications

CONTACT: Media: Kirsten Hamling, +1-720-888-1946, Investors: Robin Grey,
+1-720-888-2518, or Sandra Curlander, +1-720-888-2501

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