Level 3 to Build Transatlantic Terabit Cable System /

Tyco Submarine Systems Signs Agreement to Design and Develop HighCapacity Undersea Cable OMAHA, Neb. (PROTEXT) - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that it will build a transatlantic terabitcable system. The company has reached an agreement with TycoSubmarine Systems Ltd. (TSSL) for the design and development ofthe high capacity undersea cable. The cable system is alreadyunder development and is expected to be in service by September2000. The cable will be upgradeable to a total capacity of 1.28terabits per second. For reference, a 1.28 terabit cable systemis capable of transporting the contents of the U.S. Library ofCongress across the Atlantic in less than 16 seconds. The cablewill run from Long Island, New York, the landing point on theEast Coast of the U.S., to North Cornwall, the landing point onthe West Coast of the UK. An option for construction of anadditional cable has also been entered into with Tyco to providefor complete end-to-end redundancy. Level 3 estimates that the total cost to build the firstcable, including both the undersea and land-based portions of thesystem, will be between $600 million and $800 million. The totalcost will depend on how the cable is upgraded over time. Thecompany has prefunded the purchase of significant amounts ofundersea capacity as part of its business plan, but may requireadditional funding depending on the cable's ultimate structure,pre- construction sales and ownership. "Based on preliminarydiscussions regarding both on and off-balance sheet financingoptions, we are confident of Level 3's ability to secureincremental funding if necessary," said Douglas Bradbury, chieffinancial officer of Level 3. The system will provide a critical link in Level 3'sinternational Internet Protocol (IP) network. In the U.S., thecompany is building a nearly 16,000 mile intercity, or longdistance, network that will connect its 50 local U.S. citynetworks. Level 3 is also building an approximately 3,500 mileintercity network that will connect 15 local city networks inEurope. A total of 21 city networks are planned for financialcenters across Europe and the Pacific Rim. The company currentlyhas purchased capacity on three transatlantic cables and is partof a consortium that is building a transpacific cable. "With this transatlantic cable system, Level 3 will have thevital link to connect our high capacity networks which are beingbuilt in the U.S. and Europe. We're excited at the prospect ofproviding end-to-end IP based services to our customersworldwide," stated Colin Williams, president of Level 3International. "By significantly lowering our cost base betweenany city in Europe to any city in the U.S. we will be able tooffer very aggressive price reductions over time, comparable tothe reductions we expect to implement on our terrestrialnetworks. We intend to expand the market for capacity bycontinually seeking ways to reduce the underlying costs ofcapacity and passing those cost savings on to our customers." "This agreement with Tyco is a major milestone for both Level3 and the international telecommunications community," saidWilliams. "TSSL is a leader in their field and has greatexperience in this arena. The Level 3 transatlantic cable willincorporate the world's most advanced undersea communicationstechnology designed for high bandwidth services. By linking theLevel 3 U.S. and European networks, we will be able to connectour customers end-to-end, over a seamless international highcapacity system." "Level 3 is a world class organization with provenprofessionals that is defining innovation and leadership in fiberoptic telecommunications," stated Neil Garvey, president of TSSL."Our two organizations have worked diligently to bring thisproject to reality, and the results will set new standards ofachievement in the subsea fiberoptic, telecommunicationsmarketplace. We intend to work very closely with Level 3 to meettheir undersea telecommunications needs for their internationalnetwork." About Level 3 Communications Level 3 Communications, Inc. is a communications andinformation services company that is building the firstinternational network optimized for Internet Protocol technology.The Level 3 Network combines local, long distance, and underseanetworks, connecting customers end-to-end across the U.S. and inEurope and Asia. The company expects to complete the U.S.intercity portion of the network during the first quarter of2001. In the interim, Level 3 has leased a national network overwhich it began to offer services in the third quarter of 1998.Level 3's common stock is traded on The Nasdaq National Market(U.S.) under the symbol LVLT. Its World Wide Web address iswww.Level3.com. About TSSL Tyco Submarine Systems Ltd., a wholly owned subsidiary of TycoInternational Ltd., is an independent supplier of underseacommunications systems and services. TSSL owns and operates afleet of world class cable ships for the installation andmaintenance of undersea communication network systems. Leadingedge fiber optic technology is provided by the internationallydistinguished TSSL Labs located in Eatontown, New Jersey. Thecompletely integrated manufacturing capabilities of TSSL arehighlighted by cable, repeater and transmission equipmentmanufacturing facilities located in New Hampshire, New Jersey andVirginia. TSSL has combined these capabilities to successfullycomplete 85 undersea fiber optic networks, in excess of 350,000kilometers of fiber optic cable connecting over 100 countries.For more information on TSSL or Tyco International please visitthe websites listed below.

Tyco International Ltd.: www.tycoint.com

Tyco Submarine Systems Ltd.: www.submarinesystems.com

Torward Looking Statement The statements made by Level 3 in this press release may beforward looking in nature. Actual results may differ materiallyfrom those projected in forward looking statements. Level 3believes that its primary risk factors include, but are notlimited to: substantial capital requirements; development ofeffective internal processes and systems; the ability to attractand retain high quality employees; changes in the overalleconomy; technology; the number and size of competitors in itsmarkets; law and regulatory policy; and the mix of products andservices offered in its target markets. Additional informationconcerning these and other potential important factors can befound within Level 3's filings with the U.S. Securities andExchange Commission. Statements in this release should beevaluated in light of these important factors. ots Original TextService: Level 3 Communications, Inc. Internet:http://www.newsaktuell.de Contact: Media: Josh Howell (U.S.),402-943-1309, Investors: Julie Stangl, 303-926-3575, or JamesTyler (UK), 44 171 864 4471, all of Level 3 Communications; orAndy Kowalik of Tyco Submarine Systems, 973-656-8331 Web site:http://www.tycoint.com Web site: http://www.submarinesystems.comWeb site: http://www.level3.com

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