Primus Telecom Australia Unveils Telephone and Broadband Service on Its Own Network; DSLAM Roll out Allows Customers to Move to Primus Platform.

MELBOURNE, Australia -- In a landmark move, Primus Telecom Australia announced today that it will use its own dedicated DSL network infrastructure to offer standard voice telephony and broadband Internet services to residential customers, as well as telephony, broadband and data services to business customers.

Primus Telecom Managing Director, Greg Wilson said: "It is the first time that standard fixed line telephony on a major scale has been offered other than on the Telstra-owned network or over cable.

"This has been made possible by the extensive deployment of DSL equipment Primus is undertaking around Australia. We have already built our own DSL infrastructure in the major capital cities to serve the business community. Now we will be able to provide voice and broadband services to a significant number of residential customers. This DSL network deployment will increase customer choice of service providers, while providing Primus the ability to manage the introduction and delivery of innovative services," he said.

Primus Telecom is currently upgrading almost 200 telephony exchanges with new high capacity DSL equipment, while an additional 100 exchanges are scheduled to be revamped over the next 12 months.

This upgrade will accommodate latest broadband technologies including ADSL2+ platforms, meaning that customers will be able to receive voice, high-speed internet and data services and new interactive services including video on demand - the so called 'triple play'.

The installation of this DSL equipment, or DSLAMS, into Telstra exchanges means that Primus Telecom can immediately transition local telephone lines onto its own hardware, providing enhanced and diverse service options for customers and improved customer service.

It is estimated that Primus Telecom will be able to reach approximately half of the population through the initial deployment of the new DSL network equipment.

"This initiative represents the next logical phase in Primus's evolving business strategy in Australia," Greg Wilson said. "We started in 1996 as a reseller of Telstra services and, over a number of years, have invested in excess of $300 million to build our own extensive broadband, data and voice network around Australia.

"Thus, in less than 10 years, Primus Telecom Australia has evolved into an independent facilities-based provider of bundled local, long distance, broadband and data services - a growth that has been supported by the desire of residential and business customers for competitive and comprehensive services".

About Primus Telecom

Primus Telecom is Australia's fourth largest fixed-line telecommunications carrier. The Company offers a comprehensive range of voice, data, Internet and web hosting products, servicing both residential and business sectors. The Primus network offers nationwide coverage through its own backbone network with facilities in 66 cities across Australia. The network enables the Company to provide nationwide long distance services and local call Internet access. Primus operates its own fibre network in the five major capital cities, delivering a range of business direct-connect services including ISDN, frame relay, ATM, telephone line and broadband DSL, as well as telephone line and broadband DSL services direct to residential customers. Global connectivity is provided through an extensive voice, IP, wireless and ATM network operated by the parent company, United States-based Primus Telecommunications Group, Incorporated (NASDAQ:PRTL). Primus Australia news and information are available at the Company's Web site at www.primustel.com.au