SOURCE: Primus Telecommunications Group, Incorporated

December 20, 2010 07:30 ET

Primus Executives Talk About Scaling up Wholesale Business in Dealmakers-Monthly Magazine

Primus Scales up Wholesale Business Acquiring Arbinet in All-Stock Deal

MCLEAN, VA--(Marketwire - December 20, 2010) - Primus Telecommunications Group, Incorporated (OTCBB: PMUG), a global facilities-based integrated provider of advanced telecommunications products and services, announced today that an interview with its Chairman, President & CEO Peter Aquino and Senior Vice President, Corporate Development & CCO Richard Ramlall appears in the December issue of Dealmakers-Monthly magazine. To read the article, go to http://www.ptgi.com/docs/Dealmakers_Dec_Primus_Final.pdf.

"Given that scale is critical in the wholesale business, we made the strategic decision to add Arbinet's thexchange(SM) and complementary international route capabilities, which we expect will benefit our combined international carrier customers as they look to outsource their wholesale needs to players of size," explained Primus Chairman Peter Aquino. "This acquisition not only adds scale, but allows us to mitigate cost overlaps and is expected to allow us to realize significant synergies over time. We expect this to be a win for our customers and employees, and to generate additional value for stockholders."

Following closing, Primus will integrate Arbinet into Primus' Global Wholesale group, which should add over $300 million in annual revenue and generate accretive cost synergies of $3 million to $7 million in each of the next two years. On a pro forma basis, Primus' Wholesale business unit is expected to generate over $500 million in annual revenue, and bring Primus' total consolidated annual run rate revenue to over $1 billion.

"In addition to the tuck-in Arbinet transaction, the Primus team has been very active in evaluating the merits of retaining or divesting certain sub-scale businesses and has taken immediate action to sell or discontinue retail operations in Europe," Primus Corporate Development & CCO Richard Ramlall added. "As part of the Arbinet transaction, Primus is also pursuing a NASDAQ listing. This will allow the shares to be issued to Arbinet shareholders be exchange-traded shares to capture the greater trading efficiency and liquidity of the NASDAQ marketplace, and enable us to qualify with a broader range of institutional investors."

About Primus
Primus Telecommunications Group, Incorporated is a leading provider of advanced communication solutions, including, traditional and IP voice, data, mobile services, broadband Internet, collocation, hosting, and outsourced managed services to business and residential customers in the United States, Canada, Australia, and Brazil. Primus is also one of the leading international wholesale service providers to fixed and mobile network operators worldwide. Primus owns and operates its own global network of next-generation IP soft switches, media gateways, hosted IP/SIP platforms, broadband infrastructure, fiber capacity, and data centers located in Canada, Australia, and Brazil. Founded in 1994, Primus is headquartered in McLean, Virginia.

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