Complete Level 3 Solution Easy to Install and Use, and Offers Features of Traditional Local and Long Distance Phone Service Including 911

BOSTON, /PRNewswire-FirstCall/ Level 3 Communications, Inc. (Nasdaq: LVLT — News) today announced that it has partnered with broadband provider Speakeasy to offer Level 3’s HomeTone service to its customers. Speakeasy is using HomeTone to provide residential Voice over IP (VoIP) phone service to its customers in 120 markets nationwide. Speakeasy, which announced its entry into the consumer VoIP phone market in late September, is one of the nation’s largest independent broadband service providers.

Using Level 3’s residential VoIP solution, Speakeasy is now offering full-featured, cost-effective, high-quality local and long distance telephone service, including access to emergency services through 911 or E911, under the product name Speakeasy Voice. Speakeasy customers will be able to make and receive unlimited local and long distance phone calls for a low flat rate and can use any existing analog touch-tone telephone (adaptor required) or digital IP telephone.

In addition, Speakeasy is packaging VoIP with its unique VQ Technology to provide customers with a complete «end-to-end» managed, quality broadband phone service. With other VoIP services, call quality can deteriorate while simultaneously downloading a file or even surfing the Internet. VQ Technology enables Speakeasy to prioritize voice traffic over data traffic, so call quality is not affected by other online activities.

«Level 3’s service, combined with our unique service offerings, enables us to quickly and economically meet the exploding demand our customers have for VoIP. When combined with our OneLink™ ’naked DSL’ offering, we have a completely unique national service and can provide our customers with a reliable, high quality, cost-effective alternative to the telephone company,» said Bruce Chatterley, Speakeasy president and CEO. «In addition, Level 3 gives us the broadest nationwide coverage for ’true’ 911 and E911, fully featured voice applications and extensive interconnection with the traditional phone network.»

«We’re pleased that Speakeasy chose Level 3’s HomeTone residential VoIP solution to enter the local and long distance phone service market,» said Donna Lachance, senior vice president of Consumer Voice Services for Level 3. «Since announcing the introduction of consumer-oriented VoIP services in late March of this year, Level 3 has focused on leveraging its extensive softswitch platform and local network infrastructure to deliver what we believe is the most comprehensive range of VoIP services in the industry with the voice quality and security that consumers expect from their phone service.»

A new Yankee Group report expects the U. S. VoIP market to grow from 131,000 subscribers at the end of 2003 to over 1 million subscribers by the end of this year and 17.5 million U.S. households four years from now.

Speakeasy Service, Level 3 Building Blocks

New Speakeasy Voice customers will receive a telephone adaptor and quick-start instructions and from there, they simply plug their phone and DSL modem into the adapter and then are ready to make and receive calls. Speakeasy Voice provides local, long-distance and international calling, as well as many of the popular features such as caller ID, call waiting, last call return, voice mail, directory assistance and more. Additionally, Speakeasy Voice’s 911 service is fully integrated with local Public Safety Answering Points from day one and will provide name, address and phone number information for proper emergency dispatch.

HomeTone supplies these building blocks while enabling Speakeasy to retain the flexibility to manage and control end-user features without the headaches of implementing complex interconnection arrangements.

Speakeasy Voice is available to Speakeasy broadband subscribers for a $40 installation fee with free unlimited calling to the U.S. and Canada for the first three months for customers who sign up for the service by December 31, 2004. Thereafter, Speakeasy Voice service is $29.95 per month. Customers interested in Speakeasy Voice may obtain more information by visiting www.speakeasy.net/residential/voice or by calling 1–800–890–5214.

Level 3 is an industry pioneer in the development of VoIP technology and services. The Level 3 global network, which is optimized end-to-end for Internet Protocol (IP) technology, was built from the ground up with convergence in mind -- that is, to carry voice and data as well as video services. Today the company offers a broad suite of wholesale business and residential IP-based voice solutions over a robust softswitch-based network platform that carries over 30 billion minutes of IP-based voice and data calls every month.

For more information about Level 3’s portfolio of VoIP services, please stop by VON booth #718, or visit www.Level3.com.

About Level 3 Communications

Level 3 (Nasdaq: LVLT — News) 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 www.Level3.com.

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

About Speakeasy

Founded in 1994, Speakeasy is the nation’s largest independent broadband service provider, specializing in residential and small business broadband solutions for those who demand more than just a connection. Speakeasy offers a superior online experience through its private, dedicated nationwide network, intelligent customer service and pioneering technologies and product offerings, including unrestricted WiFi, dedicated loop ADSL and VoIP. Speakeasy owns Gamecloud, which is an infrastructure of servers, content repositories, online services (such as GameDaemons), editorial properties and partners that operate on multiple internet backbones and peering connections in order to deliver the best online gaming experience for broadband enabled customers. Speakeasy broadband is available in most metropolitan areas within the 48 contiguous United States. Those interested in Speakeasy’s services can visit www.speakeasy.net or call 1.800.556.5829.

The Level 3 logo is a registered service mark and HomeTone is a service mark of Level 3 Communications, Inc. in the United States and/or other countries. HomeTone services are offered by Level 3 Communications, LLC, a wholly owned subsidiary 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: changes in the overall economy relating to, among other things, the September 11 attacks and subsequent events, substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; technology; the number and size of competitors in its markets; law and regulatory policy; and the mix of products and services offered in the company’s target markets. 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.