ICG COMMUNICATIONS, INC.
9605 East Maroon Circle
Englewood, CO 80112

                             NEWS RELEASE
                 Contacts: Scott Chase (303) 626-3417
                      Steve Smith (303) 575-6595

   ICG COMMUNICATIONS, INC. COMPLETES $115 MILLION PRIVATE PLACEMENT
                 OF EXCHANGEABLE PREFERRED SECURITIES

ENGLEWOOD, COLORADO (September 24, 1997) -- ICG Communications, Inc.
(NASDAQ: ICGX) ("ICG"), today announced that its new wholly-owned
subsidiary, ICG Funding, LLC, completed its previously announced
private placement of $115 million of Exchangeable Limited Liability
Company Preferred Securities ("Preferred Securities"). The Preferred
Securities are mandatorily redeemable November 15, 2009 at the
liquidation preference of $50.00, plus accrued and unpaid dividends.
Dividends on the Preferred Securities will be cumulative at the rate
of 6.75 percent per annum and will be paid in cash through November
15, 2000 and, thereafter, will be paid in cash and/or shares of ICG
common stock.

The Preferred Securities are exchangeable, at the option of the
holder, into ICG Communications, Inc. common stock at an exchange
price of $24.025 per share. ICG Funding may, at its option, redeem the
Preferred Securities at any time on or after November 18, 2000. Prior
to that time, ICG Funding may redeem the Preferred Securities if the
current market value of ICG common stock equals or exceeds the
exchange price, for at least 20 days of any consecutive 30-day trading
period, by 170 percent prior to November 16, 1998; 160 percent from
November 16, 1998 through November 15, 1999; and 150 percent from
November 16, 1999 through November 15, 2000.

Net proceeds will be used to fund capital expenditures related to the
expansion and development of ICG's networks, which may include
acquisitions, and for general corporate purposes.

The Preferred Securities being offered have not been registered under
the Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or an applicable exemption
from registration requirements.

ICG is a leading national competitive local exchange carrier ("CLEC")
publicly traded on The Nasdaq National Market under the symbol "ICGX."
ICG has extensive fiber-optic networks and offers local, long distance
and enhanced telephony and data services in California, Colorado, the
Ohio Valley and parts of the southeastern United States. The
operations of ICG Communications, Inc. consist of Telecom Services
provided primarily through ICG Telecom Group, Inc., Network Services
provided primarily through ICG Fiber Optic Technologies, Inc.
("FOTI"), and Satellite Services provided primarily through ICG
Satellite Services, Inc. ICG Telecom Group, Inc. is ICG's CLEC and
enhanced services business. ICG Fiber Optic Technologies, Inc.
provides network integration and support services. ICG Satellite
Services, Inc. provides maritime telecommunications network and
international end-to-end voice and data services, and operates VSAT
(very small aperture terminal) private data networks.