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Primus ACQUIRES 1492 TECHNOLOGIES TO GAIN LEADING-EDGE E-COMMERCE AND WEB SERVICES CAPABILITIES 

McLean, VA, November 22, 1999 -- Primus Telecommunications Group, Incorporated (Nasdaq: PRTL), a facilities-based global communications company offering a portfolio of bundled domestic and international voice, data and Internet services, announced today it has acquired the business of closely held 1492 Technologies LLC of Alexandria, VA. For more than three years, 1492 Technologies has been working with businesses in the planning, design, implementation and management of their web activities and enabling e-commerce applications. The entire management and key staff of 1492 Technologies will remain with the company. Terms of the acquisition were not disclosed.

"One of the most important trends over the next five years will be the entrance of small and medium-sized enterprises (SMEs) into the Digital Economy. The acquisition of 1492 Technologies enhances Primus’s plan to be a major provider of critical services to this customer segment," said K. Paul Singh, Chairman and Chief Executive Officer of Primus. "As businesses increasingly use Internet technologies to deliver the productivity benefits of intranets, extranets and e-commerce, Primus will be positioned to provide the connectivity, hosting and interactive architecture to bring wired business plans alive."

"Teaming with Primus provides us with the resources and capabilities to capitalize on a vast domestic and international market opportunity," said Ted Reynolds, co-founder of 1492 Technologies. "Primus’s expanding global ISP operations and its position as an enabler of e-commerce solutions for businesses are compelling for the prosperity of 1492, which specializes in helping companies compete in the Net Economy."

With the addition of 1492 Technologies (www.mxdii.com), Primus customers will receive end-to-end life-cycle management for their online presence. Clients will be able to rely on Primus to develop their Internet operations, network management and hosting services, and work with them to evolve their web presence as new technologies become available. 1492 Technologies provides a foundation of Professional Solutions Services from which to support customers and their applications that are increasingly being deployed in a network-centric manner, thus taking advantage of the efficiency Internet technologies allow.

1492 Technologies recently won Vice President Al Gore’s prestigious "Hammer Award" as part of the Access America team, working to reduce waste in government. Additionally, 1999 marks the second consecutive year in which 1492 Technologies was named as one of the US’s top web design companies by ChannelSeven Communications, a respected industry resource focused on web design and consulting firms. Clients of 1492 Technologies encompass a nationally arrayed list of large and small corporations in the financial services, media, entertainment, telecommunications and manufacturing industries, government, public sector and non-profit organizations, and Internet start-ups.

iPrimus.com was formed in May 1999 as a wholly-owned subsidiary of Primus to pursue the Company’s Internet and data initiatives. Utilizing its global broadband fiber optic and satellite network, Primus offers a portfolio of world-class data/Internet products and services that includes high-speed Internet access, including dial-up, dedicated and digital subscriber line (xDSL), private line service to large corporate customers, virtual private network (VPN) service, satellite communications, and web consulting. Internet and data technology partners and service provider alliances include Cisco Systems, Covad Communications, GRIC Communications, Northern Telecom (Nortel), and NorthPoint Communications. With ISP operations in Australia, Brazil, Canada and Germany, Primus has over 150,000 Internet customers.

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Primus Telecommunications Group, Incorporated (Nasdaq: PRTL) is a full-service, facilities-based global communications company offering a bundled portfolio of international and domestic voice, data, and Internet 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, 19 international gateway and domestic 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, Primus serves corporate, small- and medium-sized business, residential and telecommunication carrier customers located in North America, Europe and the Asia-Pacific region.

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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, strategy, and timing 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 or Internet industry and the general economy; DSL, Internet and telecom competition; changes in service offerings; risks associated with Primus’s limited operating history, particularly its limited DSL and Internet experience and expertise, 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 and performance of Primus’s global communications network. These factors are discussed more fully in Primus’s public filings, including its most recent 10K and 10Q filings and the prospectus dated October 13, 1999, filed with the Securities and Exchange Commission.

 

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