XO IP Flex is a converged voice over IP solution that offers voice and data services with simplicity, flexibility and value. It allows businesses to extend the life of existing PBXs while taking advantage of VoIP benefits like connecting multiple locations seamlessly with common dial plans and features. Key benefits include reliable voice and data services, flexibility to adjust to changes, and simplicity through features like Anywhere that enable unified communications from any location.

1. XO® IP Flex A Converged Voice over IP solution offering voice and data service with unparalleled simplicity, flexibility and value

2. 2 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

3. 3 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

4. 4 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

7. Emerging business model based on unique fixed wireless assetsOther holdings include XO Interactive (IVR) and Concentric (Hosting)

9. Services in 75 major metro markets

10. Broad portfolio of services/solutions

12. SMBs and large enterprises

13. 65% of Fortune 500

15. Strong technical expertise

16. Broad industry experience

17. Customer focusedEmployees

18. 7 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.

19. 8 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

20. 9 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

21. 10 XO IP Portfolio Focus on Adding New IP Capabilities IPFlex with 4.5MB & 10MB SIP Trunks Anywhere Package Flex Opened to all PBXs IP Flex w/ MPLS IP VPN XOptions Flex with Trunks/PRI XOptions Flex Online Ordering Value Managed iPBX Added PBX Interoperability XOptions Flex with Lines 2Q2005 1Q2006 3Q2006 3Q2007 1Q2007 2Q2007 2008 4Q2007

22. 11 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

23. 12 All with no need to invest in replacement telephony equipment or routers 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

24. 13 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. Monitored 24x7 by XO Internet (Data) LAN IP Up to 3 T1s XO Tier 1 OC-192 IP Backbone IP Your Existing Phone System TDM IP Local, Long Distance, International (Voice) PSTN Your additional Locations 13

25. 14 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

26. 15 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

27. 16 IP Dynamic Bandwidth Channeled TDM The Flexibility of XO® IP Flex Channelized vs. Dynamic Bandwidth Allocation Voice Data 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 16

28. 17 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

29. 18 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

30. 19 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

31. 20 Anywhere Tool Bar… Toolbar appears as a plug-in to: Outlook Explorer Mozilla/Firefox Not compatible with Apple/Mac PCs

32. 21 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

33. 22 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

34. 23 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

35. 24 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

36. 25 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

37. 26 XO® IP Flex