HP and PRIMUS Telecommunications form Strategic Alliance to Deliver Global E-Commerce, Web-Hosting and Value-Added Data Services - Company Business and Marketing

Cambridge Telcom Report, April 3, 2000

Hewlett-Packard Company (NYSE: HWP) and PRIMUS Telecommunications Group, Inc. (Nasdaq: PRTL), a global Total Service Provider offering bundled Internet, data and voice services, Wednesday announced a strategic alliance to deliver e-commerce, Web-hosting and Internet/data services.

PRIMUS will deliver the services to business customers around the world through HP-powered data centers, which are being deployed throughout PRIMUS's existing extensive worldwide facilities-based communications network. To support the project, HP, the preferred provider of technology and services for PRIMUS's data-center deployment, is investing up to $50 million in PRIMUS through a convertible debt arrangement.

A large portion of HP's investment will be used by PRIMUS to expand its data centers in Western Europe, Australia, Japan, Brazil and other regions, as appropriate. The first of the 10,000-square-foot data centers based on HP technology is expected to open in the UK by June. PRIMUS will leverage HP's full portfolio of UNIX and Windows NT system servers, storage products, software, and consulting and support services. As PRIMUS deploys HP technology resources, PRIMUS customers will benefit from a deeper and broader service offering founded on a highly available, secure and scalable technology infrastructure.

HP also will offer its Commerce for the Millennium solution for PRIMUS's targeted countries starting with the UK and Australia. Developed and supported by HP, Commerce for the Millennium is a hosted e-commerce solution for small- and medium-sized enterprises (SMEs) that enables them to participate in digital commerce. The solution is a pre-integrated and pre-tested bundle of technologies and services that allows businesses to establish and run e-commerce sites quickly and easily. It includes store-building and maintenance software, network infrastructure, a merchant-care application and a payment processing engine. PRIMUS will offer the solution through its highly secure, reliable and robust global data backbone network optimized by the deployment of HP technology. With its leading market position, established distribution channels and experienced local management, PRIMUS expects to enhance the solution by bundling other communications services.

"We are very excited to have the tremendous strength and backing of HP to support PRIMUS as we complete the deployment of our global broadband network optimized for e-commerce, Web-hosting, and advanced Internet, data and IP applications," said K. Paul Singh, chairman and chief executive officer of PRIMUS. "As a technology powerhouse, HP's industry-leading mission-critical infrastructure technologies and services pave the way for PRIMUS to advance as a premier global Total Service Provider. We are well positioned to penetrate our target market of multinational corporations and small- and medium-sized enterprises around the world, offering a comprehensive suite of bundled best-of-breed services and e-commerce solutions."

"With its secure broadband data network, established distribution channels and more than two million customers in the world's major markets, PRIMUS is an ideal partner for HP," said Craig White, president of HP Credit Corp. "Because PRIMUS has a great business model and we believe in its management team, the $50 million investment decision was an easy one to make. But in the end, while this new alliance is great news for HP and PRIMUS, our customers are the ones that will really benefit through faster and more efficient access to new and innovative services based on an HP foundation."

PRIMUS Telecommunications Group, Incorporated (Nasdaq: PRTL) is a global facilities-based Total Service Provider offering bundled Internet, e-commerce, data, web hosting, virtual private network (VPN), voice and other value-added services. The Company presently owns and operates an extensive global network of owned and leased transmission facilities, including 150 IP points-of-presence (POPs) and Internet peering relationships throughout the world, ownership interests in over 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. PRIMUS has been expanding its e-commerce and Internet capabilities with the deployment of a global state-of the-art broadband fiber optic IP+ATM network. Founded in 1994 and based in McLean, VA, the Company serves corporate, small- and medium-sized business, 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.

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.