2. Safe Harbor Statement
Some of the statements made in this presentation 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 current uncertainty in the global financial markets and the
global economy; disruptions in the financial markets that could affect Level 3's ability to
obtain additional financing; as well as the company's ability to: increase and maintain the
volume of traffic on the network; successfully integrate acquisitions; develop effective
business support systems; defend intellectual property and proprietary rights; manage
system and network failures or disruptions; develop new services that meet customer
demands and generate acceptable margins; adapt to rapid technological changes that lead
to further competition; 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 presentation 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
2

3. Presentation Summary
• Company Overview
• Financial Overview
3

4. Company Overview
• Level 3 is a premier, international
provider of voice, data and video
transport services
• The company’s services are
purchased by the world’s largest
and fastest growing consumers of
communications services
• The company’s services are
primarily offered over its combined
long distance and metro network
• On net services are an increasingly
important competitive differentiator
4

5. Level 3’s Network Connects Directly To Customer Facilities
• Combines metro and intercity
components Office Building
Tower
• Connects to thousands of
customer facilities
• Over 300 of the Fortune 500
• Thousands of mid-market enterprises Cable Headend Level 3 Metro Data Center
• 13 of the top 16 U.S. cable Building
Networks
companies
• The top U.S. broadcast networks
• 19 top 20 telecom carriers Level 3 Intercity Network
Central Office
• 5 of the top 5 U.S. wireless providers
• The biggest social networking sites
• More than 35 federal agencies
5

6. The Level 3 Network
• Over $25B of total gross PP&E 1
• Optimized for optical and IP
services
• 54,000 intercity route miles
• 27,000 metro route miles
• Approximately 8,000 buildings on
net
• 125 metro fiber markets
• Over 100,000 enterprise
buildings within 500 ft of US
network
1. Based on estimated original cost
6

7. Communications Services
Core Network Wholesale Other
Services Voice Services Services
• Managed for revenue • Managed for margin • Declining legacy and
growth contribution acquired revenue
• Includes infrastructure, • Includes voice • SBC Contract and
data, content delivery termination and toll free Internet dial-up access
and local voice services services
• Our combined LD and • Our local connections • Less than 5% of 1Q10
metro networks are a are a competitive communications revenue
competitive advantage advantage
7

8. Level 3 Core Network Services
• Integrated set of optical and IP
services with ~80%
incremental gross margins
Local Voice CDN
Services
• Services from basic building Services
blocks to feature rich voice Data Services
and content distribution
services Transport Services
Infrastructure Services
• Addresses full range of needs
for service providers,
enterprises and content
owners
8

9. Pricing & Demand
The Market Environment For Core Network Services
Remains Positive
Infra- Data Local
Transport
structure Services Voice
1 2
Pricing
Trend
Demand
Trend
1. High speed IP and CDN services
2. VPN Services
9

10. Customer Groups
Level 3’s Business Groups Serve The Needs Of A
Premier Group Of Customers
Representative Customers
Wholesale 49%
Large
Enterprise and 19%
Federal
Mid-Market 22%
European 10%
Note: Percentages are of 1Q10 Core Network Services Revenue
10

11. Communications Services Revenue
1Q10 Actuals
Communications
$900M
Core Network Wholesale Voice Other
$701M $165M $34M
ΔGM ~80% ΔGM ~30% ΔGM ~80%
ΔGM= Incremental Gross Margin
11

12. Communications Revenue
• Revenue from 2005-2008 $4,199 $4,226
includes organic and ($ millions)
$3,695 $3,600
acquisition growth
$3,311
• Over the longer term,
$1,516
expect to return to growth
as customers return to
historic buying patterns
2005 2006 2007 2008 2009 2010E
Note: 2010 estimated revenue based on 1Q10 Total Communications Revenue of $900 million, annualized
12

13. Sequential CNS Growth
4.0% 3.5% 3.4%
2.0% 2.9%
2.1% 0.7%
0.0%
0%
-0.8% -0.7%
-2.0% -0.9% -0.8%
-3.0%
-4.0%
-6.0%
-7.1%
-8.0%
2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
• Backing out a $7 million asset sale in the first quarter, expect Core
Network Services revenue to grow sequentially for the rest of 2010
Note: Revenue Excludes Vyvx Ads Business
13

14. Stable Gross and EBITDA Margins
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110
Communications
$1,066 $1,072 $1,054 $1,034 $962 $926 $901 $906 $900
Revenue
Gross Margin % 57% 59% 60% 60% 60% 59% 59% 60% 59%
Communications
$205 $253 $257 $272 $249 $230 $215 $216 $200
EBITDA
EBITDA % 19% 24% 24% 26% (1) 26% 25% 24% 24% 22%
EBITDA-CapEx % 9% 14% 13% 16% (1) 18% 16% 16% 15% 13%
(1) Communications Adj. EBITDA for the fourth quarter excludes the net $52M benefit from the 4Q08 Adjustments
14

15. Level 3’s Debt Maturity Profile
• Repaid the remaining $111 million of the outstanding 6% Convertible
Subordinated Notes, at maturity
• Repurchased an additional $7 million of debt due in 2010 and 2011 in the open
market
• After the end of the quarter, the company issued a redemption notice for $172
million of 10% Convertible Senior Notes due May 2011
($ millions) $2,930
$695 $775 $700 $640
$196 $294
$38
2010 2011 2012 2013 2014 2015 2016 2017 2018
Pro forma for redemption of $172 million 10% Convertible Senior Notes, due in 2011
Note: Figures exclude headquarters mortgage and capital leases of $100M
15

16. Financial Leverage
• Gross Debt/Adjusted EBITDA 7.2X exiting 2009
• Targeting leverage ratio of 3X to 5X
20.0x
15.0x
10.0x
5.0x
0.0x
2005 2006 2007 2008 2009 Target
16

17. Summary
• Positive momentum with improvements in sales and churn
• Core Network Services revenue has stabilized over the last two quarters
• Expect sequential growth in Core Network Services revenue for rest of 2010,
excluding $7 million asset sale in the first quarter
• Continued improvement in debt maturity profile
• Since the end of 2009, debt maturities in 2010 & 2011 have decreased from $522
million to $234 million
• Only $38 million in maturities due in the next 12 months
• Extended $550 million of debt maturities from 2013 to 2018
17