PRIMUS Telecommunications Receives Shareholder Approval for $9 Million in Convertible Preferred Stock Financing

Business Wire, March 31, 2003

Business Editors/High-Tech Writers

MCLEAN, Va.--(BUSINESS WIRE)--March 31, 2003

PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL), a global facilities-based telecommunications services provider offering an integrated portfolio of voice, data, Internet, and Web hosting services, announced that it has received approval by shareholders at a Special Meeting held today for the issuance of 121,097 shares of Series C Convertible Preferred Stock to two private equity funds sponsored by the American International Group, Inc. ("AIG") for gross proceeds of $9.08 million to the Company before expenses.

The proceeds from the issuance of Series C Preferred Stock approved today represent the balance of a $42 million transaction, the first phase of which closed on December 31, 2002 with PRIMUS receiving approximately $33 million from AIG and a related additional investor. This transaction brings the ownership interest of AIG and the related investor in PRIMUS' issued and outstanding capital stock to approximately 25.2%. The same terms apply to the Series C Preferred issued in both phases. PRIMUS intends to use the proceeds from the financing primarily for debt reduction.

PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL) is a global facilities-based telecommunications services provider offering bundled voice, data, Internet, digital subscriber line (DSL), Web hosting, enhanced application, virtual private network (VPN), and other value-added services. PRIMUS owns and operates an extensive global backbone network of owned and leased transmission facilities, including approximately 250 points-of-presence (POPs) 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 it to deliver traffic worldwide. PRIMUS also has deployed a global state-of-the-art broadband fiber optic ATM IP network and data centers to offer customer Internet, data, hosting and e-commerce services. Founded in 1994 and based in McLean, VA, PRIMUS serves corporate, small- and medium-sized businesses, 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 PRIMUS's Web site at www.primustel.com.