Phil Koen, SAVVIS` CEO said, "SAVVIS is focused on delivering IT infrastructure as a service and we`re committed to being a leader in this space. Our new data center facilities, opening in the fourth quarter 2007, will provide customers with state-of-the-art managed hosting and colocation services, including our industry-leading virtualized utility services."

In total, the four centers will add approximately 180,000 square feet of raised floor space. This increases SAVVIS` total data center footprint more than 10 percent to over 1.5 million square feet. All of the new centers will be designed to exacting standards for security and reliability, power availability, cooling, network connectivity and environmental controls. SAVVIS has executed lease agreements for each of the sites, one of which is contingent upon certain conditions expected to be met in January 2007.

SAVVIS will deliver a broad range of hosting, network and security services from these data centers including colocation, managed hosting on dedicated platforms, and virtualized utility services that provide significant cost and performance benefits for enterprise customers. SAVVIS plans to reserve approximately 20 percent of each facility for managed hosting and virtualized utility services, offering customers the flexibility to mix, match and add services within a single facility and across data centers.

SAVVIS anticipates spending approximately $ 200 million in 2007 to fully develop the four centers. Funding will be provided by the proceeds of the sale of the CDN services business, available cash and available debt capacity. The company expects that the expansion will negatively affect Adjusted EBITDA by approximately $ 6 million in 2007 and will begin to generate revenue in the fourth quarter of 2007, and has incorporated that expectation into its financial outlook for 2007 announced today. The company anticipates that in the first full calendar year of operation, the four centers together will generate a total of approximately $ 50 million of revenue, with Adjusted EBITDA margins of approximately 40 percent. The new facilities are expected to be operating cash flow positive within twelve months of opening. Given strong demand and limited supply of colocation facilities, the company expects that the 80 percent of space dedicated to colocation will be fully occupied within 18 to 24 months of opening, and that 20 percent of new space committed to the managed hosting services will be ample to meet customer demand for five to seven years.

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The senior notes were priced at 101.75% of the principal amount plus accrued interest from October 30, 2006, representing an effective yield of 8.86% to the purchasers of these senior notes. Due 2014, the Notes will be part of a private offering to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and outside the United States under Regulation S under the Securities Act of 1933.

The senior notes represent an additional offering of the 9.25% Senior Notes due 2014 that were issued on October 30, 2006. The notes are being offered as additional notes under the same indenture as the 9.25% Senior Notes issued on October 30, 2006, and will be treated under that indenture as a single series of notes with the outstanding 9.25% Senior Notes. The debt represented by the new notes will be used to

(i) purchase Level 3 Financing`s 10.75% Senior Notes due 2011 tendered in a tender offer, which was launched by Level 3 Financing,

(ii) to the extent that less than all of the 10.75% Senior Notes due 2011 are purchased in the tender offer, to effect a satisfaction and discharge under the indenture governing the 10.75% Senior Notes due 2011 or otherwise repurchase in any lawful manner those 10.75% Senior Notes due 2011 that remain outstanding after the tender offer, and

(iii) pay fees and expenses incurred in connection with the transaction.

Gross proceeds from the offering of senior notes that exceed the amount necessary to repurchase or refinance the 10.75% Senior Notes due 2011, will constitute purchase money indebtedness under the existing indentures of Level 3 and will be used solely to fund the cost of construction, installation, acquisition, lease, development or improvement of any Telecommunications/IS Assets (as defined in the existing indentures of Level 3), including the cash purchase price of any past, pending or future acquisitions. The senior notes will not be registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.

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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DataPoint will acquire more than 250 customers and additional data center capacity in the transaction. Further, Brent Pulsipher, a former principal at VelocityServer, is being installed at DataPoint full-time as their Sales Engineer. Pulsipher said no employee positions will be eliminated and went on to say working with DataPoint was the next logical step in expanding capacity to meet the growing demand for VelocityServer services.

John Glorioso, Principal explained, ``DataPoint is a Baltimore-based hosting provider whose customer service philosophies matched our own. Our matching goals coupled with their superior hosting infrastructure made DataPoint the perfect choice to step in and provide our customers with an increased range of products and services.``

Carter Smith, General Manager of DataPoint offered, ``We are, without a doubt, very excited about adding VelocityServer`s customers and infrastructure to our own and we welcome Brent as he becomes a key member of our team. VelocityServer has built a great reputation in the Baltimore technology sector. This new acquisition helps DataPoint leverage our existing infrastructure while further expanding our network footprint and our data center facilities in a manner that directly benefits our growing customer base.``

DataPoint is owned by a company called Continental Broadband, which encompasses a family of commercial Internet data providers wholly owned by Landmark Communications. Privately-owned, Landmark Communications` companies are a diverse group of award-winning publications and media outlets, including newspapers, television broadcasting, cable TV programming (The Weather Channel), and electronic publishing.

VelocityServer was established in 1999 and has since proven to be a reliable provider of cost effective and advanced hosting solutions. The company`s data center is strategically located in the heart of Baltimore`s Digital Harbor and it has maintained favorable vendor relationships that have allowed it to offer the most cost effective hosting solutions possible.

In 2004, Zitego Solutions, LLC merged with VelocityServer to round-out the company`s offerings by providing managed services, web development and web design. As a result, VelocityServer has a software development staff with over eight years of professional web development experience that has written some of the most advanced web applications available in the area including its own advanced control panel.

DataPoint provides traditional connectivity services, Metro Ethernet connectivity, data center storage, point-to-point connectivity, and back-up solutions and other managed services. In January 2006, DataPoint announced its new Dedicated Ethernet technology providing high-speed, high-bandwidth data access at a more cost-effective rate than traditional T1 technology. With DataPoint`s Dedicated Ethernet, critical data and IP connections are bundled into one efficient and reliable service solution, its goal to reduce monthly expenses by up to seventy-five percent.

DataPoint is a facilities-based ISP delivering scalable Internet and data center solutions to businesses throughout the Mid-Atlantic region. DataPoint`s solutions include traditional high-speed Internet access, a newly launched Dedicated Ethernet Internet access product, and point-to- point connections. Other solutions include colocation, disaster recovery, data back-up and network and managed hosting services out of its Tier-1 data center. The company delivers personalized customer care, rapid response times, local 24-hour on-site support and customized service level agreements. DataPoint`s facility is headquartered in downtown Baltimore`s Tide Point campus at 1050 Hull Street, Baltimore, MD 21230

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