Kirkpatrick Pettis Initiates Coverage of Level 3Communications with a BUY Rating.

OMAHA, Neb.--(BUSINESS WIRE)--Nov. 5, 1998--Kirkpatrick Pettis, the investment affiliate of the Mutual of Omaha Companies, has initiated coverage of Level 3 Communications (LVLT-OTC) with a BUY rating.

Jessica Reuss, securities analyst, has published a research report on Level 3 Communications,

an Omaha-based communications and information services company which is building the first nationwide end-to-end fiber optic network based on Internet Protocol technology. The network will utilize packet switching technology to transport information. Packet switching technology breaks voice or data transmissions into bits, which are transported over whatever line is available and are reassembled in a fraction of a second at their destination. The new technology makes it possible to move information at a much lower cost because it makes more efficient use of the network capacity.

The traditional circuit switching method reserves one dedicated line or circuit for each individual communication for the length of that communication, similar to allowing only one car in each lane of the interstate at a time. With packet switching, every lane of the interstate is filled with cars.

In a market with "explosive growth potential," Kirkpatrick Pettis cited Level 3's experienced management team, capital position, and state-of-the-art network among reasons for initiating coverage.

"Level 3's stock has been very volatile during its short trading history, and we expect the stock to present investors with several buying opportunities as this volatility continues," said Eugenia M. Simpson, senior vice president and director of research for Kirkpatrick Pettis.

To receive a copy of the research report on Level 3 Communications, contact Melanie Griffiths at (402) 392-7926.

Kirkpatrick Pettis provides full service securities brokerage, public finance and corporate finance services, as well as money management and trust services through two affiliate companies, KPM Investment Management, Inc., and Kirkpatrick Pettis Trust Company. With net capital of more than $25 million, Kirkpatrick Pettis has offices in Omaha, Lincoln, Columbus and Nebraska City, Neb.; Denver and Englewood, Colo.; Des Moines, Iowa; and Kansas City, Mo.

Kirkpatrick Pettis makes a market in this security.

The information contained herein has been obtained from sources believed to be reliable, but it is not necessarily complete, and its accuracy cannot be guaranteed. Any opinions expressed herein reflect our judgement at this date and are subject to change without notice. This should not be construed as an offer to buy or sell any securities. Kirkpatrick, Pettis, Smith, Polian Inc. (its parent or subsidiary thereof) or its employees and directors may from time to time own, have positions (long or short) in, or options on the securities discussed in this report. (C) 1998 Kirkpatrick, Pettis, Smith, Polian Inc.