Pursuant to the definitive agreement, Level 3 has paid $ 132.5 million in cash to acquire certain assets, including network elements, customer contracts, and intellectual property used in SAVVIS`s CDN business.

Kevin O`Hara, President and Chief Operating Officer of Level 3 commented, "The opportunities presented by delivering rich media applications over the Internet continue to increase, and the addition of CDN capabilities to our service portfolio will enable Level 3 to better address this important market. This acquisition does not require the type of physical integration associated with the metro and backbone transactions we announced in 2006. We are confident in our ability to incorporate this key capability into our service portfolio."

SAVVIS, Inc. is a global IT infrastructure service firm for business applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS has over 5,000 enterprise customers and endeavors to deliver secure, reliable, and scalable hosting, network, and application services. The solutions are designed to enable customers to focus on core business while SAVVIS ensures the quality of IT systems and operations. SAVVIS` goal is to enlist a strategic approach, combining virtualization technology, a global network with 25 data centers, and automated management and provisioning systems.

Level 3 Communications, Inc., an international communications company, operates one of the largest Internet backbones in the world. Through its customers, Level 3 is the primary provider of Internet connectivity for millions of broadband subscribers. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. The services are designed to provide building blocks that enable Level 3`s customers to meet growing demands for advanced communications solutions.The principal components offered by Level 3`s (3)VoIP Enhanced Local service include network trunking, local telephone numbers, local number portability, the safety of E-911, operator assistance, caller ID, directory listings, and directory assistance. The service is designed to allow Level 3 customers to retain the flexibility to manage and control end-user features without the difficulties of implementing complex interconnection arrangements.

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Switch and Data, will provide FastServers.Net with space, power and interconnection services to enable the company to provide its full range of services – from single server to cluster based solutions.

Aaron Phillips, Vice President of Sales and Marketing at FastServers.Net remarked, ``Switch and Data’s Chicago data center provides FastServers.Net with the opportunity to expand immediately in this market. Their colocation services and access to other bandwidth providers in one facility made this an easy choice for us.``

It is anticpated that with a diversity of carriers available in its data centers, Switch and Data offers a marketplace for customers to expand and exchange with other networks, thus enabling businesses such as FastServers.Net to extend their own services to more customers.

Switch and Data is a leading provider of Internet exchange and colocation services. Based in Tampa, Florida, Switch and Data operates one of the largest footprints of neutral Internet exchange and colocation facilities in North America with 34 data centers in 23 markets serving more than 830 customers. Switch and Data’s PAIX is recognized worldwide as the premier name in peering and Internet exchange services and is home to one of the largest commercial exchange points in North America.

FastServers, Inc. is a dedicated server and colocation service managing over 2,500 dedicated servers. The company was founded in 1996 by Ian Andrusyk and Travis Schaffner in Sumner, Iowa. FastServers.Net currently has datacenters in Cedar Falls and Fremont, California. The Midwest Data Center is powered by Internap and Hurricane Electric with direct fiber connections to Equnix in Chicago. FastServers.Net competitors include Rackspace, Interland, Verio, EV1Servers, and The Planet.

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Under the terms of the agreement, Level 3 has committed to exchange $ 490 million aggregate principal amount of Level 3`s 10% Convertible Senior Notes due 2011 for a total of approximately 160.1 million shares of Level 3`s common stock, equivalent to approximately 326.78 shares per $ 1,000 note, and the payment of accrued and unpaid interest on the notes to the closing date. The shares of common stock to be issued under this agreement are exempt from registration pursuant to Section 3(a)(9) under the Securities Act of 1933, as amended. The notes are currently convertible into shares of Level 3`s common stock at a rate of 277.77 shares per $ 1,000 note. As a result of the exchange, the company expects to reduce its 2007 cash interest expense by approximately $ 47 million. The notes are callable by the company on May 1, 2009. Sunit S. Patel, CFO of Level 3 commented, ``This transaction is positive for our company as it helps us delever and reduce interest expense. Throughout 2007, we expect to continue taking steps operationally and financially to improve our financial position.`` Level 3 Communications, Inc., an international communications company, operates one of the largest Internet backbones in the world. Through its customers, Level 3 is the primary provider of Internet connectivity for millions of broadband subscribers. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. The services are designed to provide building blocks that enable Level 3`s customers to meet growing demands for advanced communications solutions.The principal components offered by Level 3`s (3)VoIP Enhanced Local service include network trunking, local telephone numbers, local number portability, the safety of E-911, operator assistance, caller ID, directory listings, and directory assistance. The service is designed to allow Level 3 customers to retain the flexibility to manage and control end-user features without the difficulties of implementing complex interconnection arrangements.

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