Level 3 Communications, Inc. and IBM have announced that the companies recently entered into a long-term patent cross-license agreement.

Under the terms of the agreement, IBM granted Level 3 licenses to IBM's

approximately 42,000 pending and issued patents which cover a broad range

of telecommunications services and technologies. In turn, Level 3 granted

IBM licenses to those of Level 3's more than 850 pending and issued patents

which cover a broad range of information handling systems. The licenses

will last as long as the lives of the respective patents. Other terms of

the cross-license agreement were not disclosed.

"We have long admired IBM's legacy of innovation," said Jack Waters,

chief technology officer of Level 3. "This patent cross-license agreement

provides Level 3 the opportunity to take advantage of IBM's innovation as

we continuously expand the range of services we provide our customers."

"IBM enjoys a widely recognized reputation of innovation and invention

for technologies related to telecommunications, networking, media and

entertainment," said Dan Cerutti, IBM's general manager of intellectual

property. "With this cross license, we look forward to deepening our

relationship with Level 3, and reaping with them all the benefits of

collaboration."

About IBM

IBM has earned the most U.S. patents for 15 consecutive years and holds

approximately 42,000 patents globally. The company has a strong global

focus on storage and server networking, serving all major industry segments

-- entertainment, publishing, information providers, media networks and

advertising. For more information on IBM, visit http://www.ibm.com.

About Level 3 Communications

Level 3 Communications, Inc. (Nasdaq: LVLT), an international

communications company, operates one of the largest Internet backbones in

the world, connecting more than 180 markets in 20 countries. The company

serves a broad range of wholesale, enterprise, and content customers with a

comprehensive suite of services including: Internet Protocol (IP) services,

broadband transport and infrastructure services, colocation services, voice

and voice over IP services, content delivery, and media distribution

services. These services provide the building blocks to enable Level 3's

customers to meet their growing demands for advanced communications

solutions. The company's Web address is http://www.Level3.com.