BROOMFIELD, Colo. -- Level 3 Communications, Inc. (Nasdaq: LVLT - News) today announced that SBC Internet Services, a wholly-owned subsidiary of SBC Communications Inc., has extended an existing agreement with Level 3 for dial-up Internet access service. The original contract, announced in January 2002, has been extended by two years and now runs through the end of 2006. The agreement also includes an increased revenue commitment of approximately $11 million from SBC over the contract's duration.

Under the terms of the agreement, SBC Internet Services is buying (3)Connect Modem services from Level 3 to serve its dial and roaming DSL Internet customers. The contract makes Level 3 the exclusive provider of wholesale dial-up access service for SBC and its affiliates for traffic that is not being supported by SBC's own network assets.

"We are obviously very pleased that SBC Internet Services has elected to extend its agreement with Level 3 for managed modem services," said Jack Waters, president of Global Softswitch Services for Level 3. "We are firmly committed to offering a dial-up access service that features new and advanced capabilities, industry-leading call completion rates, flexible pricing options, and broad geographic coverage."

(3)Connect Modem service covers more than 90 percent of the U.S. population and is available on a per-port basis for a flat monthly fee or on a metered basis based on the total number of hours used. The monthly charge includes local dial-in numbers, complete network coverage for a specific region, modems to collect the incoming traffic, and managed routers.

Level 3 Communications Inc.

SBC Communications Inc.