Subject: [NEXTEL-1] XO

From: Marcel <[email-masked]>
Date: Fri, 15 Nov 2002 18:37:21 -0500

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BW2228 NOV 15,2002 9:34 PACIFIC 12:34 EASTERN

( BW)(VA-XO-COMMUNICATIONS)(XOXOQ) Court Approves XO's Stand-Alone
Reorganization Plan; National Telecom Provider Set to Emerge From
Bankruptcy

Business Editors/Hi-Tech Writers

RESTON, Va.--(BUSINESS WIRE)--Nov. 15, 2002--XO Communications,
Inc. (OTCBB:XOXOQ) announced that the U.S. Bankruptcy Court for the
Southern District of New York confirmed the company's stand-alone plan
of reorganization on Friday, November 15, 2002, setting the stage for
XO to implement that plan and emerge from the Chapter 11 bankruptcy
proceedings upon receipt of necessary state and federal regulatory
approvals.

XO expects to emerge from bankruptcy with a strong balance sheet
appropriate for today's business environment. As of September 30,
2002, XO had cash and cash equivalents on hand of approximately $554
million dollars.

Under the stand-alone plan, restructured XO's long-term debt will
be approximately $500 million, but cash interest payments on that debt
will not be required until XO achieves specified financial targets.
Entities controlled by Carl C. Icahn currently hold approximately 85
percent of XO's senior secured debt and over $1.33 billion face amount
of XO's senior notes.

These entities will hold more than 80% percent of the newly issued
equity in the company upon completion of the restructuring.

"Confirmation of our plan of reorganization validates our
restructuring strategy and allows us, upon completion of the plan, to
emerge from bankruptcy as a financially sound company with a strong
national presence and the ability to impact the telecommunications
industry," said XO Chairman and Chief Executive Officer Dan Akerson.
"This restructuring process has been a test of the resolve and
dedication of all of our employees, and I believe it is fair to say
that the test was passed with flying colors. During this process, we
have made steady progress with our innovative product offerings,
customer service and operational efficiencies. As a result, we have
reduced our capital expenditures and operating expenses to levels that
are in line with our operations and the new realities of the
telecommunications industry and economy. Our success adding new
customers during our restructuring has also demonstrated the value
businesses see in our solutions and service and evidences the
dedication of our XO employees."

Today XO's operating subsidiaries continue to provide service to
more than 215,000 business customers.

In addition to the significant improvements to XO's balance sheet,
XO will emerge from bankruptcy with its ever-expanding suite of voice
and data products and services for businesses, including the XOptions
packages that provide bundles of voice, data, Internet access and Web
hosting. To date, more than 10,000 XOptions bundles have been sold to
businesses across the United States.

XO also has one of the strongest collections of national intercity
and local network assets in the telecommunications industry, with
robust metro fiber networks in more than 60 markets throughout the
United States and an award-winning OC-192 backbone network that spans
the United States.

On November 15, 2002, the Bankruptcy Court also approved the
settlement between XO, Telefonos de Mexico, S.A. de C.V. (TELMEX) and
certain investment partnerships affiliated with Forstmann Little & Co.
to mutually terminate the previously announced Forstmann Little/TELMEX
Investment Agreement and to settle any potential claims relating to
the Investment Agreement or its termination.

Under the terms of the settlement, the Investment Agreement is
terminated, Forstmann Little and TELMEX will each pay XO $12.5
million, for a total of $25 million, and all parties will release any
claims they may have relating to the Investment Agreement.

"XO has a strong and loyal customer base, served by robust
networks in the key major metropolitan areas. The financial
performance the company has achieved during these difficult times is
not only a testament to its workforce but is also proof of XO's
continuing ability to offer great value to its customers," said Carl
Icahn, the financier who will own a controlling position in
reorganized XO. "Now that the restructuring process has resulted in a
right-sized balance sheet and a strong cash position, XO is poised for
continued growth."

"We have continuously analyzed XO Communications for the past four
to five years, dating back to the company's origins as Nextlink. We
believe that XO has an opportunity to emerge from its restructuring as
one of the few service providers in the U.S. capable of competing for
and serving business customers on a nationwide basis," stated Mike
Smith, Co-Founder and Managing Director of Research with Stratecast
Partners, a firm providing analysis of the communications industry.
"XO has developed a comprehensive array of network assets, a broad
solution portfolio comprised of voice, data and IP service offerings,
and is capable of providing broadband access via a variety of means.
The company also has a unique ability to meet the needs of
multi-location business customers, given its presence in more than 60
markets throughout the U.S. In completing its restructuring, XO has
successfully addressed its most significant issue--its debt
burden--and has now positioned itself to continue providing
high-quality service and customer support."

About XO Communications

XO Communications is a leading broadband communications service
provider offering a complete set of communications services,
including: local and long distance voice, Internet access, Virtual
Private Networking (VPN), Ethernet, Wavelength, Web Hosting and
Integrated voice and data services.

XO has assembled an unrivaled set of facilities-based broadband
networks and Tier One Internet peering relationships in the United
States. XO currently offers facilities-based broadband communications
services in more than 60 markets throughout the United States.

The statements contained in this release that are not historical
facts are "forward-looking statements" (as such term is defined in the
Private Securities Litigation Reform Act of 1995).

These statements include those describing the expected future
operations of XO and the expectations regarding the outcome of the
restructuring transactions and the related Bankruptcy Court
proceedings described in this release.

Management wishes to caution the reader that these forward-looking
statements are only predictions and are subject to risks and
uncertainties and actual results may differ materially from those
indicated in the forward-looking statements as a result of a number of
factors.

These factors include, but are not limited to, risks associated
with XO's ability to complete the transactions described in this
release and those risks and uncertainties described from time to time
in the reports filed by XO Communications with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended December 31, 2001 and in its Quarterly Report on Form 10-Q
for the quarter ended September 30, 2002.

Other important factors that could cause actual events or results
to be materially different from the forward-looking statements
include: the ability of the Company to consummate its stand-alone plan
of reorganization, including obtaining necessary regulatory approvals;
and court approval of motions prosecuted by the Company from time to
time in the chapter 11 case.

XO, XO Not Just Talk and the XO design logo are trademarks of XO
Communications, Inc. All other trademarks are the property of their
respective owners.

--30--RM/ph*

CONTACT: XO Communications, Inc.
Media and Industry Analysts
Kara Palamaras
703/547-2011 or 703/906-3579
or
Financial Analysts
Noelle Beams, 703/547-2002

KEYWORD: VIRGINIA
INDUSTRY KEYWORD: BANKING COMPUTERS/ELECTRONICS GOVERNMENT
TELECOMMUNICATIONS
SOURCE: XO Communications, Inc.

©2002