Primus Business Services First to Launch IP Telephony Solution on Dedicated T1 Line.

Primus Hosted PBX Helps Small and Medium Businesses Reduce Costs and Improve Reliability

TORONTO -- Primus Telecommunications Canada Inc. (Primus Canada), a leader in facilities-based voice, data, colocation, web hosting, VoIP and Internet services utilizing ADSL2+ technology, today launched its new private data exchange system, Primus Hosted PBX. The fully managed telephony service (Private Business eXchange) enables businesses to affordably and easily improve their communication capabilities.

Primus Hosted PBX is a fully managed, business grade phone and Internet communication service that uses VoIP technology over a dedicated T1 line to the Primus network. A T1 line, also known as DS1, is a widely used telecommunication signaling system used to transmit voice and data between phones and computers at a rate of 1.544 bits per second. Voice traffic on Primus' Hosted PBX service is not mixed with any other traffic on the Internet and therefore is not exposed to viruses, congestion and delays.

"Primus' Hosted PBX provides a fully-managed solution that uses expert network design and engineering to ensure businesses have the highest quality voice service," said AJ Byers, senior vice president, Primus Business Services. "The Small and Medium Enterprise-sized business is one of the customer groups that would benefit from Hosted PBX. As a result, we have developed a product that eliminates both capital investment and the risks associated with making incorrect technology choices, two major concerns of the SME market."

Primus Hosted PBX requires minimal start-up costs and all hardware, set-up and maintenance is covered in the cost of the service. It eliminates the cost of owning and maintaining a system by giving customers the ability to customize and outsource their telephony needs. All phone lines and long distance calls between offices are included in the cost of the service. With fixed monthly charges, customers have a predictable monthly operating overhead that can also have hardware added as the business grows.

"A hosted PBX offers several advantages over traditional solutions, like Centrex and IP PBX," said Kevin Restivo, an analyst with the SeaBoard Group in Toronto. "The hosted approach allows growing businesses to build their communications capabilities as they add people - there's no need to toss away their existing investment. Hosted PBX also provides 24/7 access to key support staff - a luxury that a mid-sized company could never justify on its own."

Hosted PBX is a fully managed solution designed for businesses that have demanding staffing requirements, including seasonal businesses, call centres, medical offices, real estate, staffing agencies and organizations with multiple headquarters and mobile workforces. The Hosted PBX System is infinitely scalable to adapt easily to business growth or downsizing - an organization can have as little as 10, to an infinite number of phones. The solution allows companies to concentrate on core competencies instead of devoting resources to maintaining telephony.

Primus' Hosted PBX adds enterprise level functionality for the SME customer - features such as softphone allow remote workers direct connectivity to the office network, website portal functionality, and voicemail to e-mail integration allow workers to centrally manage and customize their voice communication with the click of a button and free 4-digit local calling between offices and remote workers lowers costs by eliminating long distance charges.

"Our mid-sized technical staffing agency has been using Primus Hosted PBX since February of this year after switching from a VoIP system with another provider which had ongoing reliability issues," said Mike Berlin, Corporate Recruiter, CADRE. "Downtime is unacceptable in our business. The switch to Primus has resulted in zero downtime, superior customer service and significantly reduced our monthly telephony expenditure."

About Primus Business Services

Primus Business Services is a leading provider of advanced voice communications, data centre infrastructure and managed information technology (IT) solutions for over 45,000 Canadian businesses of all sizes. Its dedicated group of certified technicians, system administrators and network engineers deliver and support innovative solutions for over 55,000 businesses. As a division of Primus Canada, Primus Business Services leverages a national network for voice and data services, and a world-class telecom infrastructure.

About Primus Canada

Primus Telecommunications Canada Inc. is the largest alternative communications carrier in Canada with over 1,000,000 customers. The Company offers facilities-based voice, data, e-commerce, Web hosting, VoIP and broadband Internet services utilizing ADSL2+ technology. As a leading Internet service provider in Canada, Primus Canada has over 80,000 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 nationwide switches with international connectivity through its parent company's global network, ATM and IP nodes, and colocation facilities at major cities across the country. These network elements provide an integrated and converged backbone for all of PRIMUS Canada's voice, data, VoIP, Internet private line and bundled services. The local colocation network covers over three million households and businesses in Canada utilizing next generation ADSL2+ technology, delivering download speeds of up to 22 Mbps. Primus Canada is also one of Canada's largest MVNO's (Mobile Virtual Network Operator) offering Primus Wireless service over the Rogers Wireless network. Primus Canada is a wholly-owned subsidiary of McLean, Virginia-based Primus Telecommunications Group, Incorporated (OTCBB:PRTL). Primus Canada news and information are available at the Company's Web site at www.Primustel.ca.