The broker lowered its price target to $2.50 from $3, and maintained its estimate for a 2008 loss of 40 cents a share, while analysts polled by Thomson Reuters, on average, estimate a full-year loss of 39 cents a share.

Shares of Level 3, a Broomfield, Colo.-based communications technology provider, closed Friday at $3.12. Greg Saulnier gs/jw

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Level 3 also announced that proxy materials for its 2008 Annual Meeting of Stockholders will be made available on the Internet under the U.S. Securities and Exchange Commission's new Notice and Access rule. Stockholders will be able to access the proxy materials and Level 3's 2007 Annual Report as directed in the Notice of Internet Availability of Proxy Materials that stockholders will receive in the mail. These materials can also be viewed at http://ww3.ics.adp.com/streetlink/lvlt. By following the new Notice and Access rules, Level 3 has reduced the number of printed copies of its proxy materials by more than 90 percent, both lowering the cost and reducing the environmental effect of producing and delivering these materials.

Level 3's stockholders may obtain hard copies of Level 3's proxy materials free of charge by following the instructions provided in the Notice of Internet Availability of Proxy Materials.

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, and 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.

Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.

Forward-Looking Statement

Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE Level 3 Communications

http://www.level3.com

With this deployment, Level 3's CDN service offering will mark one of the first major content delivery platforms to be fully enabled with Flash Media Server 3, and will help customers deliver an improved online experience with HD streaming capabilities and improved functionality for encoding, protecting and monetizing their content. Additionally Flash Media Server 3 enables more concurrent streams to be delivered by the same server, offering improved efficiencies and economics for the customer.

"Level 3 continues to invest in core features and functionality demanded by today's streaming customers," said Grant van Rooyen, president of Level 3's Content Markets Group. "This rollout is the latest step in building a world-class streaming platform. Level 3 is committed to pushing technology platforms such as Adobe Flash Media Server 3 to market to help drive adoption of rich media content."

Level 3 continues to offer customers diverse options for distributing content with the combination of both its CDN and Streaming services, and its Vyvx services portfolio; the company offers all aspects of the content delivery value chain for traditional and non-traditional distribution. Level 3 will begin offering its HD streaming service integrated with Adobe's Flash Media Server 3 at the end of April.

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, and 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.

Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.

Forward-Looking Statement

Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE Level 3 Communications, Inc.

http://www.Level3.com

Revenue rose 3% to $1.09 billion from $1.06 billion a year ago, compared with analyst forecasts of $1.06 billion, as a 10% rise in core communications revenue helped offset declines in other communications and SBC contract services revenue.

The Broomfield, Colo. communications services company affirmed its 2008 core communications services revenue growth forecast of 8% to 13%. The company also said it was on track to reach its 2 primary goals for 2008 of reaching free cash flow breakeven and to increase sales and installations to rates that match customer demand.

The stock closed Tuesday at $2.37. Tomi Kilgore tk1

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Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

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