PRIMUS Telecommunications Acquires an Internet Service Provider in Canada [April 15, 2004]

MCLEAN, Va., Apr 15, 2004 (BUSINESS WIRE) -- PRIMUS Telecommunications Group, Incorporated (PRTL) (PRIMUS), a global telecommunications service provider offering an integrated portfolio of voice, Internet, voice over Internet protocol (VOIP), data and hosting services, announced today that PRIMUS Telecommunications Canada, Inc. (PRIMUS Canada), its wholly owned subsidiary in Canada, acquired Magma Communications Ltd (Magma), a leading provider of Internet solutions to corporate, government and residential customers in Toronto, Ottawa and Montreal. Magma's product offerings include Web hosting, server co-location and managed services (system administration and security), and Internet access. PRIMUS Canada will acquire 100% of the issued stock of Magma for a total consideration of approximately C$16 million, half of which will be payable from available cash and the balance in shares of Common Stock of PRIMUS.

The acquisition adds approximately 30,000 customers to PRIMUS Canada's existing Internet customer base of over 70,000 and significantly expands its network and operations in Ottawa where Magma operates a 7,000 square foot Data Center. "We believe Magma provides an excellent infrastructure to enhance our existing Internet and Data Center business, particularly to government and corporate accounts," said Ted Chislett, President and Chief Operating Officer of PRIMUS Canada.

Founded in 1995, Magma has earned a reputation for providing quality customer service, winning the Consumers Choice Award for Internet Service Providers in Ottawa seven years in a row. Magma has also experienced consistent revenue growth with a five-year average annual growth rate of over 30%.

K. Paul Singh, Chairman and Chief Executive of PRIMUS, stated: "We have previously articulated the essential criteria we have established for acquisitions - they have to add scale in our existing major markets, they should be focused on growing our retail customer base, and they need to be accretive to our operating profitably and cash flow. The Magma acquisition meets all of those measures, as well as broadening our service offerings and targeted customers. In addition, Magma's customer base presents opportunities for bundling our VOIP and voice products."

PRIMUS Telecommunications Group, Incorporated (PRTL) is a global telecommunications services provider offering bundled voice, data, Internet, digital subscriber line (DSL), VOIP, Web hosting, enhanced virtual private network (VPN) applications, and other value-added services. PRIMUS owns and operates an extensive global backbone network of owned and leased transmission facilities, including VOIP connections to over 150 countries and over 550 points-of-presence (POPs) throughout the world, ownership interests in over 23 undersea fiber optic cable systems, 18 international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. PRIMUS also has deployed a global state-of-the-art broadband fiber optic ATM+IP network and data centers to offer customer Internet, data, hosting and e-commerce services. Founded in 1994 and based in McLean, VA, PRIMUS serves corporate, small- and medium-sized businesses, residential and data, ISP and telecommunication carrier customers primarily located in the North America, Europe and Asia Pacific regions of the world. News and information are available at PRIMUS's Web site at www.primustel.com.

PRIMUS Telecommunications Canada, Inc. is the largest alternative communications carrier in Canada with approximately 900,000 retail customers. The Company offers facilities-based voice, data, e-commerce, Web hosting and Internet services. As a leading Internet service provider in Canada, PRIMUS Canada has approximately 100,000 Internet subscribers served by a national network of Internet points-of-presence (POPs) for dedicated and dial-up access. PRIMUS Canada also offers local services to businesses, bundling them with its long distance and Internet services. The Company has a fully redundant and diverse SONET network across Canada, extending from Quebec City to Victoria. PRIMUS Canada's national network consists of Nortel DMS 500 switches with international connectivity through its parent company's global network, and ATM and IP nodes at major cities across the country. These network elements provide an integrated and converged backbone for all of PRIMUS Canada's voice, data, Internet and private line services. PRIMUS Canada is a wholly-owned subsidiary of McLean, Virginia-based PRIMUS Telecommunications Group, Incorporated (PRTL) . PRIMUS Canada news and information are available at the Company's Web site at www.primustel.ca.

For PRIMUS Telecommunications Group, Incorporated and PRIMUS Canada:

Statements in this press release concerning the Magma transaction, future revenue, services, operating results and growth constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current expectations, and are not strictly historical statements. Factors and risks that could cause actual results or circumstances to differ materially from those set forth or contemplated in forward-looking statements include, without limitation: changes in business conditions; fluctuations in the exchange rates of currencies, particularly any strengthening of the United States dollar relative to foreign currencies of the countries where we conduct our foreign operations; changes in the telecommunications or Internet industry; digital subscriber line, Internet, cable and telecommunications competition; changes in financial, capital market and economic conditions; changes in service offerings or business strategies; difficulty in migrating or retaining customers, or integrating assets; difficulty in providing voice-over-Internet protocol and wireless services; changes in the regulatory schemes or requirements and regulatory enforcement in the markets in which we operate; risks associated with our limited DSL, Internet and Web hosting experience and expertise; the possible inability to hire and/or retain qualified sales, technical and other personnel, and to manage growth; risks associated with international operations; dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; dependence on the implementation and performance of our global asynchronous transfer mode + Internet protocol communications network; and the outbreak or escalation of hostilities or terrorist acts and adverse geopolitical developments. As such, actual results or circumstances may vary materially from such forward-looking statements or expectations. Readers are also cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. We are not necessarily obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult the discussion of risks and uncertainties under "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Short and Long-Term Liquidity Considerations and Risks"; and "-Special Note Regarding Forward-Looking Statements" contained in our quarterly report on Form 10-Q and annual report on From 10-K for the period ended December 31, 2003, as filed with the Securities and Exchange Commission.

SOURCE: PRIMUS Telecommunications Group, Incorporated

PRIMUS Telecommunications Group, Incorporated, McLean
John DePodesta, 703-902-2800
jdepodesta@primustel.com