WESTON, VA – XO Communications, Inc. (OTCBB: XOCM.OB), one of the nationÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s
leading providers of broadband telecommunications services, today announced that
Judge Robert Drain of U.S. Bankruptcy Court for the Southern District of New
York has issued an order approving XO CommunicationsÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ proposed purchase of
substantially all of the assets of Allegiance Telecom, Inc. (OTCBB: ALGXQ.OB)
for approximately $311 million in cash and 45.38 million shares of XO common
stock. The transaction remains subject to, among other things, applicable
federal and state governmental regulatory approvals and termination of
applicable waiting periods.
On February 13, 2004, XO Communications was selected as the winning bidder
for Allegiance Telecom, which had filed for financial restructuring under
Chapter 11 of the U.S. Bankruptcy Code on May 14, 2003. Under the terms of the
purchase agreement, XO will purchase substantially all of the assets of
Allegiance Telecom and its subsidiaries except for AllegianceÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s customer
premises equipment sales and maintenance business (operated under the name of
Shared Technologies), its managed modem business, and certain other Allegiance
assets and operations.
With the addition of AllegianceÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s network assets and customer base, XO will
become the premier national facilities-based competitor to the regional Bell
operating companies. The acquired assets are expected to add more than 100,000
customers and bring XOÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s total revenues to more than $1.6 billion. The companyÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s
network will have more nationwide connections to regional Bell operating
companiesÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢ networks than any other CLEC, and double the Points of Presence
(PoPs) within the 36 major metropolitan areas where both XO and Allegiance
operate. XO believes that this extensive network will help XO improve delivery
of service to customers, reduce network costs, improve operating results and
better compete head to head with other companies in the nationwide local
telecommunications services market.
About Allegiance Telecom
Allegiance Telecom is a facilities-based
national local exchange carrier headquartered in Dallas, Texas. As the leader in
competitive local service for medium and small businesses, Allegiance offers
“One source for business telecomTM” – a complete package of telecommunications
services, including local, long distance, international calling, high-speed data
transmission and Internet services and a full suite of customer premise
communications equipment and service offerings. Allegiance serves 36 major
metropolitan areas in the U.S. with its single source provider approach.
Allegiance’s common stock is traded on the Over the Counter Bulletin Board under
the symbol ALGXQ.OB.
About XO Communications
XO Communications is a leading broadband
telecommunications services provider offering a complete set of
telecommunications services, including: local and long distance voice, Internet
access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting and
Integrated voice and data services.
XO has assembled an unrivaled set of facilities-based broadband networks and
Tier One Internet peering relationships in the United States. XO currently
offers facilities-based broadband telecommunications services within and between
more than 70 markets throughout the United States.
For more information contact:
Chad Couser/ XO Communications