XO Communications Implements Multi-Million Dollar Networking Solution for Philip Services Corporation

RESTON, VA – September 28, 2004 – XO Communications, Inc. (OTCBB: XOCM.OB), the nation’s largest facilities-based provider of national local telecommunications services focused exclusively on businesses, today announced that it has implemented a data networking, voice and hosting solution for Philip Services Corporation (PSC), a leading provider of industrial and metals services throughout North America.

Under the multi-year, multi-million dollar contract, XO is providing data, voice and collocation hosting services in support of more than 2,800 employees at 125 PSC locations across the continental United States and Hawaii. Over a three-month period, XO implemented a 75-site managed IP-VPN solution that replaced PSC’s legacy frame relay network. By using XO VPN services to connect its corporate headquarters, regional offices and data center facilities, PSC has a more cost-efficient and scalable network that can be used to deploy applications across a single IP platform. XO is also providing collocation and point-to-point Ethernet services in two geographically dispersed locations to support PSC’s disaster recovery needs. In addition to these data networking requirements, XO is providing long distance voice services to 115 PSC sites as well as local voice services at select PSC locations.

“We selected XO because of its extensive national coverage and ability to deliver a wide range of telecommunications services to support day-to-day our operations and mission-critical applications,” said Glen Gelormini, vice president of Information Technology at Philip Services Corporation. “We had an aggressive implementation schedule and XO exceeded all of our expectations with regard to delivery, service and overall satisfaction.”

“XO is very pleased to have been selected to support Philip Services Corporation,” Matt Harty, president of Commercial Sales at XO Communications. “A deployment of this size and geographic complexity requires a telecommunications services provider that has the experience, national reach, and service capabilities to accommodate Philip Service Corporation’s unique needs.”

About Philip Services Corporation

Headquartered in Houston, Texas, Philip Services Corporation is an industrial and metals services company with two operating groups: PSC Industrial Services provides industrial cleaning and environmental services; and PSC Metals Services delivers scrap charge optimization, inventory management, remote scrap sourcing, by-products services and industrial scrap removal to major industry sectors throughout North America. For more information about PSC, visit www.contactpsc.com.

About XO Communications

XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit www.xo.com.

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For more information contact:

Chad Couser/XO Communications
703-547-2746
chad.couser@xo.com



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