ANN ARBOR, Mich. and BROOMFIELD, Colo., June 15, 2006 -- Internet2 and Level 3 Communications, Inc. (Nasdaq: LVLT) today announced an agreement to develop and deploy a new nationwide network and new services to enhance and support the advanced needs of the academic and research community. This new network initially will offer Internet2 members 100 gigabits per second (Gbps) of capacity, more than 10 times that of the current Internet2 backbone network, and will be designed to easily scale to add capacity as Internet2 members' requirements evolve. Based on input and feedback from the research and education community, the network will support a full range of production IP services as well as new on-demand, dedicated optical wavelength services to enable the most demanding network applications and experimentation.

Under the terms of the multi-year agreement, Level 3 will provide dedicated facilities enabling multiple 10 Gbps wavelengths, high-speed IP transit and colocation services with options for private line, metro and long-haul dark fiber services to interconnect the backbone with academic institutions and support growth and changes in member requirements over time.

"This powerful, flexible network to be created by Internet2 and Level 3 will enable the research and education community to unlock new frontiers in the development of true next-generation Internet technologies," said Dr. Larry Faulkner, Internet2 Board of Trustees chairman. "In doing so, Internet2 is expanding upon its long legacy of providing reliable and cutting-edge networking to advance the missions of its members and the broader research and education community."

"We are pleased to work with Internet2 for this important milestone in advanced research networking," said Jack Waters, executive vice president and chief technology officer of Level 3. "Over the past several years, IP requirements for research and academic networks have increased the demand for Level 3's backbone network services in the U.S. and Europe. Level 3 continues to be well positioned to serve the needs of the Internet2 community, and we are excited to enable this next important phase in advanced Internet technology development."

Level 3 will deploy digital optical technologies for Internet2 to provide multiple 10 Gbps wavelengths and enable rapid bandwidth provisioning across the entire footprint for its members. These new optical services will allow network users to obtain dedicated one Gbps sub-wavelengths or entire 10 Gbps wavelengths through advanced network scheduling or on-demand. It will also enable users to provision circuits dynamically for short or long-term use. Additionally, using this optical system, the new Internet2 network will provide production IP capabilities and bundled access to the Internet.

The new optical services will provide increased levels of flexibility that can support bandwidth-intensive experimental applications. As examples, astronomers will be able to link distant telescopes for real-time and more accurate data analysis, physicists will be able to exchange terabyte-scale data sets in seconds and medical researchers and doctors will be able to share high-resolution images instantaneously.

"We are pleased to be a business partner in this new phase of Internet2's mission," said Jerry Hogge, senior vice president and general manager of Level 3's federal group. "We believe that this significant commitment to the research and academic community will enable Internet2 to continue to build on its legacy of reliability and innovation through improved service, extended new capabilities and enhanced ability to scale and grow the network as its members' needs change."

"Internet2 selected Level 3 as the provider for this vital network because Level 3 has extensive existing fiber connectivity with the higher education and research community; leading-edge network capabilities to enable the most demanding network uses our community can imagine; and unparalleled experience in designing, building and scaling large backbone networks for growth," said Douglas Van Houweling, president and chief executive officer of Internet2. "This will allow the Internet2 community to focus its resources primarily on its core research and educational missions."

The new network infrastructure's capabilities build on the successes of Internet2's Hybrid Optical Packet Infrastructure (HOPI) testbed, an initiative examining a hybrid of packet and circuit switched optical infrastructures to understand next generation architectures. The Internet2 network will provide dedicated experimental facilities to computer scientists and network researchers to support their missions in testing new network paradigms, protocols, and architectures, pushing the envelope of networking technology.

Internet2 is working with its members and regional networking organizations to finalize deployment details with the new network becoming operational during 2007. In the interim, Internet2's relationship with Level 3 will enable optical circuit services for the community using Level 3's existing facilities. Internet2 is also working closely with its current network partners and network connectors to ensure a smooth and seamless transition of traffic from its current backbone network onto the new infrastructure.

About Internet2(R) Led by more than 200 U.S. universities, working with industry and government, Internet2 develops and deploys advanced network applications and technologies for research and higher education, accelerating the creation of tomorrow's Internet. Internet2 recreates the partnerships among academia, industry, and government that helped foster today's Internet in its infancy. For more information about Internet2, visit http://networks.internet2.edu.

About Level 3 Communications

Level 3 (Nasdaq: LVLT), an international communications and information services 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. These services provide building blocks that enable Level 3's customers to meet their growing demands for advanced communications solutions. The company's Web address is http://www.Level3.com.

Level 3 offers information services through its subsidiary, Software Spectrum, and fiber-optic and satellite video delivery and advertising distribution solutions through its subsidiary, Vyvx. For additional information, visit their respective Web sites at http://www.softwarespectrum.com and http://www.vyvx.com.

The Level 3 logo is a registered service mark of Level 3 Communications, Inc. in the United States and/or other countries. Level 3 services are provided by 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: increasing the volume of traffic on Level 3's network; developing new products and services that meet customer demands and generate acceptable margins; successfully completing commercial testing of new technology and information systems to support new products and services, including voice transmission services; stabilizing or reducing the rate of price compression on certain of our communications services; integrating strategic acquisitions; attracting and retaining qualified management and other personnel; ability to meet all of the terms and conditions of our debt obligations; overcoming Software Spectrum's reliance on financial incentives, volume discounts and marketing funds from software publishers; and reducing downward pressure of Software Spectrum's margins as a result of the use of volume licensing and maintenance agreements. 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.

SOURCE Internet2; Level 3 Communications, Inc.

Related links:

http://www.vyvx.com

http://www.softwarespectrum.com

http://networks.internet2.edu

http://www.level3.com/