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PRIMUS Launches to Attack Global Internet/Data Market.

New Subsidiary Operational With an Integrated Global Fiber and Satellite

Network and a Customer Base of 50,000; Joins Ranks of Global ISPs

McLEAN, Va., May 24 /PRNewswire/ -- was launched today, with a unique worldwide running start, offering Internet and data services in major international markets where its parent, PRIMUS Telecommunications Group, Incorporated (PRIMUS) (Nasdaq: PRTL), now operates as a global carrier.

"The launch of is the next major step in executing PRIMUS's global strategy of aggressively gaining retail market share by offering 'one- stop' shopping for bundled voice, data, Internet and cellular services," said K. Paul Singh, chairman and chief executive officer of PRIMUS.

Unique Global Integrated Fiber/Satellite Broadband Network Deployed

The key to's operational launch is PRIMUS's global network infrastructure, proven technology and focused approach to market. "To be truly competitive in the Internet/data market, you have to have a robust global infrastructure," Singh stated. "Over the past 18 months, PRIMUS has built a scaleable broadband global backbone network and developed critical operational experience and backroom support systems."

PRIMUS's multiservice network consists of international gateway and domestic switches and ownership interests in 23 high capacity transoceanic and terrestrial fiber optic cable systems that directly connect 24 countries. PRIMUS's world class fiber network is complemented with a global satellite network. Together, the integrated network currently provides coverage to more than 40 countries, with plans to expand to approximately 100 countries.

The company's first Intelsat Type A satellite earth station, located in London, England, is now operational with a footprint coverage of Southeast Asia, the Indian Ocean region, Eastern Africa and the Middle East. Additional satellite earth stations will be deployed on the east and west coasts of North America to provide coverage of Latin America and the Pacific Rim. will share PRIMUS's existing global network infrastructure which will be expanded, using the latest in IP+ATM integration and traffic engineering technology, to carry Internet-based data, voice and image communications. "The first expansion of our network capabilities took place in Australia last year, where PRIMUS is that country's fourth largest carrier, when we expanded our infrastructure to a broadband multimedia network within three months." Singh stated. -- A Fast Growing, Full Service Global ISP

"With this 'running start' launch of, we are creating a separate subsidiary with an aggressive and concentrated focus that makes start-up companies successful. Significantly, will also possess elements normally not present in a start-up's inception- management expertise, adequate capital, network, products and a sizeable existing customer base," said Singh. will be a discrete entity with its own management team, separate profit and loss responsibility, and a dedicated business objective of gaining market share in the rapidly growing Internet and data segment service areas. will offer a broad portfolio of services including Internet connectivity, IPVoice, IPFax, unified messaging, mission-critical web-hosting, e-commerce transaction services, co-location, streaming media, virtual private networks (VPN), data and other services. These services will be offered by on a stand-alone or bundled basis with other telecommunications services offered by PRIMUS's global subsidiaries.

A realization of PRIMUS's visionary global business plan, is already a sizeable global Internet Service Provider (ISP) with more than 50,000 business and residential customers in Australia and Canada, as well as a data carrier with numerous multinational corporations and organizations as customers.

In the eight major markets in which PRIMUS operates as a carrier -- Australia, Japan, United States, Canada, United Kingdom, Germany, France and (soon) Italy -- it plans to offer a bundled suite of services including voice, data, Internet and cellular. In all markets served by its fiber network and within its global satellite footprint will target overseas carriers, PTTs, ISPs, Web hosting firms, content providers, multinational corporations and organizations, and other enterprises requiring access to the data-rich U.S. Internet backbone.

"Acquisitions, strategic partnerships and affiliations will be at the core of the growth strategy for," Singh stated. plans to acquire and invest in ISPs in select countries. will offer its affiliated ISPs a unique value proposition by leveraging the global connectivity provided by PRIMUS' network to the U.S. Internet backbone -- the destination of some 70 percent of all global Internet traffic -- to offer significantly lower transmission costs. will also enhance revenue opportunities for an affiliated ISP by terminating the voice traffic already flowing on PRIMUS's network through the affiliated ISP's interconnection with their local network. Further, can expand product portfolios of foreign ISPs by offering next generation IP voice, fax and unified messaging services.

" offers one of the largest global broadband networks, a fast- growing customer base, the ability to cross-sell and bundle a broad portfolio of services, and plans to integrate strategic partnerships with Internet market leaders, global infrastructure providers and network equipment manufacturers," noted Singh. "With the experienced management team we have to implement this strategic plan, plans to leverage its competitive advantages in the high-margin, high-growth Internet and data market."

PRIMUS Telecommunications Group, Incorporated is a global facilities-based telecommunications company providing domestic and international long-distance voice, data, Internet, private network and value-added services. The Company provides services through an extensive global network of owned and leased transmission facilities, including ownership interests in 23 undersea fiber optic cable systems, 12 international gateway switches, a satellite earth station and a variety of operating relationships that allow the Company to deliver traffic worldwide. Founded in 1994 and based in McLean, Va., the Company has an annual revenue run rate in excess of $500 million and serves more than 650,000 corporate, small- and medium-sized business, residential and telecommunications carrier customers located in the North America, Europe and the Asia-Pacific regions of the world. News and information are available at the Company's Web site at

To receive additional information on PRIMUS Telecommunications Group, Incorporated via fax at no charge, dial 1-800-PRO-INFO and enter code PRTL.

The statements in this release that are forward looking statements are based on current expectations and are not strictly historical statements, which may differ materially from actual results. Not strictly historical statements include, without limitation, those regarding management's plans, objectives and strategy for future operations, product plans and performance, management's assessment of market factors, and future financial performance. Among factors that could cause actual results to differ materially are changes in business conditions, changes in the telecommunications industry and the general economy; competition; changes in service offerings; risks associated with PRIMUS' limited operating history, entry into developing markets, and managing rapid growth; and risks associated with international operations (including foreign currency translation risks), dependence on effective information systems, and development of the network. These factors are discussed more fully in PRIMUS' filings, including its 10K and 10Q filings and the prospectus dated May 6, 1999, filed with the Securities and Exchange Commission.
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Publication:PR Newswire
Date:May 24, 1999
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