MCLEAN, VA--(INTERNET WIRE)--Nov 06, 2001-- PRIMUS Telecommunications Group, Incorporated (Nasdaq: PRTL - news), a global facilities-based Total Service Provider offering an integrated portfolio of voice, data, Internet, and Web hosting services, today announced an expanded suite of Voice-over-Internet Protocol (VoIP) services, including services for carriers anywhere in the world and enterprise services allowing businesses to converge their voice and data networks. The expanded suite was made possible through PRIMUS's unique, next-generation global VoIP network.

"We believe we are the first global facilities-based provider to own and operate a global VoIP network which has been integrated with a global public switched voice network and a global ATM backbone owned by the same company," said John Melick, co-President of PRIMUS Telecommunications, Inc. and one of the principal developers and implementers of the Company's VoIP initiative. "The unique benefits of these bridged networks enable us to offer an unparalleled, leading edge VoIP product with greater control of our cost structure. Our global VoIP routes are diverse and fully redundant for greater availability in cases of IP network congestion. As a result, we can provide superior quality of service and reliability on a global basis compared to other offerings in the market today."

"Barak ITC is very pleased with the reliability and overall quality of service levels generated by our VoIP connection with PRIMUS," said Avi Patir, Chief Executive Officer of Israel's Barak ITC. "Our VoIP service with PRIMUS has added a new dimension to our traditional circuit switched network by allowing for diversity, backup, and redundancy capabilities without sacrificing the superior quality of service levels expected by our customers." PRIMUS has activated VoIP nodes in over 15 countries throughout Europe, the United States, Latin America, and the Asia-Pacific region, many of which are collocated within existing voice/ATM switch sites and tie into nearly 300 Company-owned points of presence (POPs) operated by its global Internet service providers. This backbone is supplemented by VoIP partner relationships which extend the network to an additional 150 POPs in over 70 countries located throughout Eastern Europe, the Baltic region, Russia, the Middle East, Africa, Latin America, and the Asian-Pacific region.

VoIP locations are equipped with Open Settlement Protocol (OSP). The OSP platform allows for the secure processing and exchange of VoIP traffic worldwide from a centralized platform. This arrangement minimizes the investment required to deploy and operate proprietary facilities at every VoIP node worldwide that would otherwise be required to process and track VOIP transactions, retrieve billing records, and facilitate collection and payment processes. The OSP platform is highly scalable for customers of all sizes, and streamlines the implementation process for new customer services anywhere in the world within 72 hours for those already utilizing IP technology and Internet connectivity.

"Our VOIP strategy has enabled us to expand our global network coverage while minimizing the investments required in international fiber optic cable facilities, circuit switches, and other costly network equipment associated with the expansion of a traditional circuit switched network," continued Mr. Melick. "We have significantly broadened our 'on-net' country VoIP coverage during the past 12 months of operation, all with lower overall costs to terminate and originate voice traffic. Moreover, and where regulations permit, we have opened the door to many of our new VoIP partners to join us in programs designed to originate traffic for enterprise and carrier customers from overseas locations, thereby realizing incremental revenue streams.

"We also are one of the only VoIP providers who can bundle other voice and data products and services worldwide for customers and partners on a proprietary network. In conjunction with VoIP services, we can package Web hosting from our 9 global data centers, global ATM services, dedicated Internet access, and international private lines (IPLs), among other services. The advantage of bundling services differentiates PRIMUS from VoIP clearinghouses and pure-play carriers who presently don't have the product line-up or global reach and do not own their voice and data networks."

Commenting on the progress PRIMUS has made with its VoIP initiative, K. Paul Singh, Chairman and Chief Executive Officer of the Company, said: "With a limited rollout of VoIP services to the carrier and Internet service provider market in early 2000, PRIMUS today has services activated with more than 70 major carrier customers. Our VoIP service revenues have already reached an annual revenue run rate of over $42 million based on our financial results for the third quarter of 2001. We believe that significant growth for VoIP services will emerge as the enterprise customer segment is penetrated. Our VoIP network was expanded with this premise in mind. We are now beginning to focus on providing VoIP solutions to our enterprise customer base."

In a move to help businesses more easily manage the voice and data traffic on their local area network (LAN) and wide area network (WAN) and use available bandwidth more efficiently, PRIMUS today announced a new class of VoIP service called PRIMUS Premium Enterprise VoIP. Marketed as "The Future of VoIP, Now," PRIMUS's enterprise VoIP solutions provide for the convergence of a customer's data and voice networks over PRIMUS's unique VoIP infrastructure.

Subscribing to PRIMUS's enterprise VoIP service requires little, if any, capital investment, and will also reduce the customer's costs for reliable international voice services while offering them enhanced and value added data services from a single source provider. A proprietary Centralized Intelligence Solution (CIS) sets PRIMUS apart from other carriers by providing customers with secure, reliable, high quality and cost effective VoIP service that allows them to make long distance calls from anywhere in the world where Internet access is available to any phone on the public switched network -- or "anywhere to anywhere."

The service is scalable for enterprise customers of all sizes. Another benefit of the enterprise service is its streamlined enrollment process, which takes as little as 24 hours for customers to be activated. PRIMUS is rolling out its enterprise VoIP product through its operating units around the world.

To learn more about PRIMUS's VoIP solutions, please go to the Company's Web site at http://www.primustel.com/.

Notes to editors:

The service expansion was made possible through PRIMUS's next-generation global VoIP network that reaches multiple geographic and customer market segments. The network is comprised of PRIMUS's own backbone VoIP nodes as well as those of its global VoIP partners worldwide. The Company's VoIP platform overlays directly on the earlier deployment of its global public switched telephone network (PSTN) and global broadband fiber optic asynchronous transfer mode and Internet protocol (ATM+IP) network.

PRIMUS Telecommunications Group, Incorporated (Nasdaq: PRTL) is a global facilities-based Total Service Provider offering bundled voice, data, Internet, digital subscriber line (DSL), Web hosting, enhanced application, virtual private network (VPN), and other value-added services. The Company owns and operates an extensive global backbone network of owned and leased transmission facilities, including over 300 IP points-of-presence (POPs) throughout the world, ownership interests in over 23 undersea fiber optic cable systems, 23 international gateway and domestic switches, a satellite earth station and a variety of operating relationships that allow the Company to deliver traffic worldwide. PRIMUS has been expanding its e-commerce and Internet capabilities with the deployment of a global state-of-the-art broadband fiber optic ATM+IP network. Founded in 1994 and based in McLean, VA, the Company 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 the Company's Web site at www.primustel.com.

The statements in this release concerning 3rd and 4th quarter EBITDA, revenues and prospects are "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, are not strictly historical statements, and may differ materially from actual results. Forward looking statements include without limitation, those regarding management's plans, goals, expectations, guidance, forecasts, objectives, strategy, and timing for future operations and products such as roll-out of our network or data centers, product plans and performance, predictions or expectations of future growth, management's assessment of market factors, the availability of financing and future financial performance. Among factors that could cause actual results to differ materially are changes in business conditions; changes in the telecommunications or Internet industry or the general economy or capital markets; DSL, Internet and telecom competition; changes in service offerings or business strategies; inability to lease space for data centers at commercially reasonable rates; difficulty in provisioning Voice over IP services; changes in the regulatory schemes and regulatory enforcement in the markets in which we operate; restrictions on our ability to follow certain strategies or complete certain transactions as a result of our capital structure or debt covenants; the possible inability to raise capital when needed, or at all; the inability to reduce debt significantly; risks associated with PRIMUS's limited DSL, Internet and web-hosting experience and expertise, entry into developing markets, the possible inability to hire and/or retain qualified sales, technical and other personnel, particularly as we continue to attempt to grow our data-centric services, and managing rapid growth; and risks associated with international operations (including foreign currency translation risks); dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; and dependence on the implementation and performance of PRIMUS's global ATM+IP communications network. These factors are discussed more fully in PRIMUS's public filings, including its most recent 10-Q and 10-K filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. PRIMUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
 

 Jordan Darrow

 PRIMUS Telecommunications Group

 212-703-0116

 jdarrow@primustel.com