XO® IP Flex A Converged Voice over IP solution offering voice and data service with unparalleled simplicity, flexibility and value Howard Grant Senior A ccount Executive XO Communications |105 Molloy St. | Nashville, TN 37201 Direct: 615.495.8413 | E-Fax: 615.345.1680 | Care: 800.424.0583 Howard Grant Senior Account Executive XO Communications |105 Molloy St. | Nashville, TN 37201 Direct: 615.495.8413 | E-Fax: 615.345.1680 | Care: 800.424.0583

Your Key Communications Needs Solved: Reliable Voice and Data service Extend the life of existing PBXs while taking advantage of the benefits of VoIP Connect many disparate locations and systems seamlessly through VoIP Common dial plans Common feature set Secure Data communications Flexibility – enables you to adjust quickly to change Simplicity – Anywhere feature enables unified communications

Solved:

Reliable Voice and Data service

Extend the life of existing PBXs while taking advantage of the benefits of VoIP

Connect many disparate locations and systems seamlessly through VoIP

Common dial plans

Common feature set

Secure Data communications

Flexibility – enables you to adjust quickly to change

Simplicity – Anywhere feature enables unified communications

Why XO…? XO is the industry leader in business-class VoIP Services Recipient of 2005 Internet Telephony Excellence Award Over 160,000 VoIP users nationwide Established service provider – committed to IP

XO is the industry leader in business-class VoIP Services

Recipient of 2005 Internet Telephony Excellence Award

Over 160,000 VoIP users nationwide

Established service provider – committed to IP

Why XO? Simplicity – all of your voice, data and hosting services, all for one flat monthly rate, all on one bill Flexibility –scales for your business growth and enables you to quickly configure and change user features Value –select the bandwidth, calling plan and features to meet the needs of your business

Simplicity – all of your voice, data and hosting services, all for one flat monthly rate, all on one bill

Flexibility –scales for your business growth and enables you to quickly configure and change user features

Value –select the bandwidth, calling plan and features to meet the needs of your business

Carrier and Wholesale Segments $300M revenue XO ® Overview Other holdings include XO Interactive (IVR) and Concentric (Hosting) Carrier and Government Segments Emerging business model based on unique fixed wireless assets SMB and Enterprise Segments $1B revenue

Carrier and Wholesale Segments

$300M revenue

Carrier and Government Segments

Emerging business model based on unique fixed wireless assets

SMB and Enterprise Segments

$1B revenue

XO® Overview More than 4,000 employees nationwide Strong technical expertise Broad industry experience Customer focused 160,000 business and carrier customers SMBs and large enterprises 65% of Fortune 500 Emerging and established carriers Nationwide, metro and wireless networks Services in 75 major metro markets Broad portfolio of services/solutions Best-in-class customer service Employees Customers Capabilities

More than 4,000 employees nationwide

Strong technical expertise

Broad industry experience

Customer focused

160,000 business and carrier customers

SMBs and large enterprises

65% of Fortune 500

Emerging and established carriers

Nationwide, metro and wireless networks

Services in 75 major metro markets

Broad portfolio of services/solutions

Best-in-class customer service

Corporate Vision & Strategy The XO Vision: Deliver industry leading IP and broadband wireless solutions with exceptional customer service. In Short: Be the best IP provider for business.

The XO Vision:

Deliver industry leading IP and broadband wireless solutions with exceptional customer service.

In Short: Be the best IP provider for business.

Industry’s Leading VoIP Infrastructure Committed to offering our customers the most robust, reliable and feature-rich IP services available Established leader in IP Services: Deployed Sonus gateways nationwide in 2000 Began offering Business VoIP services in 2005; now serve over 160,000 VOIP users nationwide Defined IP Strategy and Roadmap

Committed to offering our customers the most robust, reliable and feature-rich IP services available

Established leader in IP Services:

Deployed Sonus gateways nationwide in 2000

Began offering Business VoIP services in 2005; now serve over 160,000 VOIP users nationwide

Defined IP Strategy and Roadmap

Industry’s Leading VoIP Infrastructure Recent VoIP Network enhancements include: Upgrading network servers to boost processing power Increasing call-handling capacity Deploying additional application & network servers Proactively monitoring network/device performance and traffic patterns to prevent outages from occurring

Recent VoIP Network enhancements include:

Upgrading network servers to boost processing power

Increasing call-handling capacity

Deploying additional application & network servers

Proactively monitoring network/device performance and traffic patterns to prevent outages from occurring

XO IP Portfolio Focus on Adding New IP Capabilities XOptions Flex with Lines SIP Trunks Value Managed iPBX XOptions Flex with Trunks/PRI 2Q2005 1Q2006 3Q2006 3Q2007 IP Flex w/ MPLS IP VPN XOptions Flex Online Ordering 1Q2007 Flex Opened to all PBXs Added PBX Interoperability 2Q2007 IPFlex with 4.5MB & 10MB 2008 4Q2007 Anywhere Package

Focus on Adding New IP Capabilities

The XO VoIP Solution Business-class Integrated Voice and Data Service A bundled VoIP solution which provides business customers with voice, data, web hosting, and unified communications for a simple price. Tier 1 nationwide private IP network Utilizes Dynamic Bandwidth Allocation to adjust to heavy data demands by permitting the full use of the IP circuit to support data traffic when voice lines are idle. Connectivity is provided via analog lines, digital trunks or ISDN PRI. No need to invest in replacement telephony equipment or routers

Business-class Integrated Voice and Data Service

A bundled VoIP solution which provides business customers with voice, data, web hosting, and unified communications for a simple price.

Tier 1 nationwide private IP network

Utilizes Dynamic Bandwidth Allocation to adjust to heavy data demands by permitting the full use of the IP circuit to support data traffic when voice lines are idle.

Connectivity is provided via analog lines, digital trunks or ISDN PRI.

The XO® VoIP Solution Includes: Unlimited Local calling and unlimited Site to Site calling between IP Flex, IP Flex with VPN and SIP locations Full set of calling features included Available Anywhere feature for unified communications Choice of calling plans for inbound and outbound long distance Choice of port speed: 1.5 Mbps, 3.0 Mbps, 4.5 Mbps or 10 Mbps Dedicated Internet access Web Basics hosting package Business Center with Online Feature Management enables real-time changes All with no need to invest in replacement telephony equipment or routers

Includes:

Unlimited Local calling and unlimited Site to Site calling between IP Flex, IP Flex with VPN and SIP locations

Full set of calling features included

Available Anywhere feature for unified communications

Choice of calling plans for inbound and outbound long distance

Choice of port speed: 1.5 Mbps, 3.0 Mbps, 4.5 Mbps or 10 Mbps

Dedicated Internet access Web Basics hosting package

Business Center with Online Feature Management enables real-time changes

How XO® IP Flex Works: Integrated Access Device (IAD) installed on your premise Connects you via a T-1 to XO Tier 1 OC-192 IP backbone. Calls travel over a dedicated IP connection… not the public Internet. Internet (Data) Local, Long Distance, International (Voice) PSTN XO Tier 1 OC-192 IP Backbone IP TDM Up to 3 T1s IP Your Existing Phone System LAN Monitored 24x7 by XO Your additional Locations IP

Integrated Access Device (IAD) installed on your premise

Connects you via a T-1 to XO Tier 1 OC-192 IP backbone.

Calls travel over a dedicated IP connection… not the public Internet.

Simplicity of XO® IP Flex… Dedicated Internet access at port speeds of 1.5 Mbps, 3.0 Mbps, 4.5 Mbps or 10 Mbps No charge for additional lines within the selected speed Up to 48 lines or 72 Voice Grade Equivalents, depending on speed selected Unlimited Local calling and unlimited Site to Site calling between your IP Flex, IP Flex with VPN and SIP locations Choice of calling plans for inbound and outbound long distance Choice of connectivity: analog lines, Digital Trunk, or ISDN PRI

Dedicated Internet access at port speeds of 1.5 Mbps, 3.0 Mbps, 4.5 Mbps or 10 Mbps

No charge for additional lines within the selected speed

Up to 48 lines or 72 Voice Grade Equivalents, depending on speed selected

Unlimited Local calling and unlimited Site to Site calling between your IP Flex, IP Flex with VPN and SIP locations

Choice of calling plans for inbound and outbound long distance

Choice of connectivity: analog lines, Digital Trunk, or ISDN PRI

The Flexibility of XO® IP Flex Twenty-five standard analog voice line features, including voice mail Dynamic Bandwidth Allocation increases Internet access speeds, while voice traffic always takes priority for maximum call quality: Means IP Flex adjusts to your heavy data demands by permitting the full use of the IP circuit to support increased data traffic when voice lines are idle… Always gives voice traffic priority Accelerates exchange of critical documents Maximizes bandwidth utilization

Twenty-five standard analog voice line features, including voice mail

Dynamic Bandwidth Allocation increases Internet access speeds, while voice traffic always takes priority for maximum call quality:

Means IP Flex adjusts to your heavy data demands by permitting the full use of the IP circuit to support increased data traffic when voice lines are idle…

Always gives voice traffic priority

Accelerates exchange of critical documents

Maximizes bandwidth utilization

The Flexibility of XO® IP Flex Channelized vs. Dynamic Bandwidth Allocation Channeled TDM IP Dynamic Bandwidth Dedicated Voice and Data Channels - No Capacity Flexibility as Demand Fluctuates Capacity Continuously Adjusts to On-going Demand Fluctuations (Voice Always has Priority) Voice Data Voice Data

Channelized vs. Dynamic Bandwidth Allocation

Flexible Features without the high cost Auto Attendant Powerful, flexible tool fields and delivers inbound calls to intended destination through interactions with the caller Call Center Provides a complete business-ready application to help businesses establish technical assistance lines, customer support numbers, or order-taking centers Voice VPN Provides common dial plans for callers in different locations Available to any combination of the following site types: XOptions® Flex XO® SIP XOptions® Flex with VPN

Auto Attendant

Powerful, flexible tool fields and delivers inbound calls to intended destination through interactions with the caller

Call Center

Provides a complete business-ready application to help businesses establish technical assistance lines, customer support numbers, or order-taking centers

Voice VPN

Provides common dial plans for callers in different locations

Available to any combination of the following site types:

XOptions® Flex

XO® SIP

XOptions® Flex with VPN

XO® Anywhere for unified communications Work from any location, anywhere in the world, and present a professional image to your customers: Protect your Caller ID information Charge your office line for your remote office calls Be more reachable to customers and coworkers Never miss an important call again

Work from any location, anywhere in the world, and present a professional image to your customers:

Protect your Caller ID information

Charge your office line for your remote office calls

Be more reachable to customers and coworkers

Never miss an important call again

XO® Anywhere for unified communications Click to dial… An outlook contact with a single click A number on an email you receive with a single click A number on a website to request more information with a single click Receive your voicemail messages as email attachments And change preferences on-the-fly Use a web-based toolbar to configure features in real-time

Click to dial…

An outlook contact with a single click

A number on an email you receive with a single click

A number on a website to request more information with a single click

Receive your voicemail messages as email attachments

And change preferences on-the-fly

Use a web-based toolbar to configure features in real-time

Anywhere Tool Bar… Toolbar appears as a plug-in to: Outlook Explorer Mozilla/Firefox Not compatible with Apple/Mac PCs

Toolbar appears as a plug-in to:

Outlook

Explorer

Mozilla/Firefox

Not compatible with Apple/Mac PCs

Anywhere Overview Package of features available to users of Flex Existing XOptions® Flex New and Existing XO® IP Flex New and Existing IP Flex with VPN customers Four key Components: Toolbar Simultaneous Ring (“Sim Ring”) Remote Office Outlook Integration / Click to Dial

Package of features available to users of Flex

Existing XOptions® Flex

New and Existing XO® IP Flex

New and Existing IP Flex with VPN customers

Four key Components:

Toolbar

Simultaneous Ring (“Sim Ring”)

Remote Office

Outlook Integration / Click to Dial

Anywhere Benefits Company benefits: Boost productivity of remote and mobile workers Unify business communications Have all calls charged directly to your XO service, even when employees work away from the office Be more reachable to your customers Present a professional image to customers no matter where your employees are working from User benefits: Work from anywhere as if your were in the office Turn any phone into your office phone Never miss an important call Use a single Flex number to help customers and coworkers find you Protect personal Caller ID when making calls away from the office

Company benefits:

Boost productivity of remote and mobile workers

Unify business communications

Have all calls charged directly to your XO service, even when employees work away from the office

Be more reachable to your customers

Present a professional image to customers no matter where your employees are working from

User benefits:

Work from anywhere as if your were in the office

Turn any phone into your office phone

Never miss an important call

Use a single Flex number to help customers and coworkers find you

Protect personal Caller ID when making calls away from the office

The Value of XO® IP Flex XO Business Center: Allows you to manage your XO account and your XO IP Flex service: Track Web Statistics View and Pay invoices online Add lines to your XO IP Flex locations Online Feature Management: Activate or deactivate features on existing phone lines Set up Visual Voicemail to receive your voicemail messages as email attachments Configure Auto Attendants, Call Centers, Voice VPN

XO Business Center:

Allows you to manage your XO account and your XO IP Flex service:

Track Web Statistics

View and Pay invoices online

Add lines to your XO IP Flex locations

Online Feature Management:

Activate or deactivate features on existing phone lines

Set up Visual Voicemail to receive your voicemail messages as email attachments

Configure Auto Attendants, Call Centers, Voice VPN

IP Flex… Providing Solutions Business-class service supported by Provider who understands the needs of your business Tier 1 nationwide network Extend the life of your existing premise-based telephone systems Seamlessly integrate multiple disparate locations Feature-rich optional services allow you to tailor IP Flex to your business needs

Business-class service supported by

Provider who understands the needs of your business

Tier 1 nationwide network

Extend the life of your existing premise-based telephone systems

Seamlessly integrate multiple disparate locations

Feature-rich optional services allow you to tailor IP Flex to your business needs

IP Flex… Providing Solutions Benefit from the simplicity of having a single point of contact for both voice and data needs for all of your locations. Receive a single, consistent bill for accurate budgeting & planning and reduced paperwork. Save time customizing and configuring your voice services to your changing employee needs. Enable unified communications with Anywhere feature Boost productivity of remote and mobile workers

Benefit from the simplicity of having a single point of contact for both voice and data needs for all of your locations.

Receive a single, consistent bill for accurate budgeting & planning and reduced paperwork.

Save time customizing and configuring your voice services to your changing employee needs.

Enable unified communications with Anywhere feature

Boost productivity of remote and mobile workers

XO® IP Flex