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PRIMUS Telecommunications Group, Incorporated (ticker: PRTL, exchange: OTC Bulletin Board (.OB)) News Release - 12-Aug-2002


PRIMUS Telecommunications To Provide Voice-Over-Internet Protocol Services For Microsoft Messenger Service Customers

MCLEAN, VA--(INTERNET WIRE)--Aug 12, 2002 -- PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL), a global facilities-based Total Service Provider offering an integrated portfolio of voice, data, Internet, and hosting services, today announced it has entered into an agreement with Microsoft Corporation to provide Voice-over-Internet Protocol (VoIP) services for MSN Messenger Service customers. This agreement will enable MSN Messenger Service consumer and business customers to take advantage of the added convenience, enhanced service features and significant savings when using their personal computers to make voice calls to telephones virtually anywhere in the world.

MSN Messenger Service users may now choose PRIMUS as their carrier for PC-to-phone service to communicate with friends, family, colleagues and co-workers. PRIMUS will allow customers to get more out of their Internet connection by enabling calls originating from a PC while surfing the Internet at the same time. Marketed by PRIMUS as "PrimusTalk™," once a user has logged into MSN Messenger Service, calls can be made by clicking on the "Make a Phone Call" link. A phone dialer will appear where a call can be made to any number -- national, international or mobile.

PRIMUS will provide PrimusTalk™ service as an Internet telephony application that can be accessed by any user accessing MSN Messenger Service. Specifically, PRIMUS's PC-to-Phone service will be integrated with the MSN Messenger Service as an option that may be accessed by users of Microsoft client software programs. Before the service was offered to customers, PRIMUS had to satisfy testing by Microsoft to ensure quality of service and an optimized user experience.

"PRIMUS is leading the way to a carrier class era of converged communications solutions," said John Melick, co-President of PRIMUS Telecommunications, Inc. and one of the principal developers and implementers of PRIMUS's VoIP initiatives. "As a third-party solutions provider with market leading positions in global voice and Internet services, the advantage of PRIMUS offering a voice service over the Internet's architecture is the added convenience and value available to customers by engaging in communications at their desktop or wherever they are using a MSN Messenger Service-enabled device."

To subscribe or learn more about PrimusTalk™ services, please go to www.iprimus.net.

Notes for Trade Publication Editors

- PRIMUS's PC-to-Phone service is available as a communications option for users of MSN Messenger Service.

- The PRIMUS brand will be included in Microsoft enabled phone dialers of personal computers (PCs) for PC-to-Phone voice transmissions made using PRIMUS's VoIP services.

- Services provided by PRIMUS are based on SIP (Session Initiation Protocol) architecture, which complies with Microsoft standards for the ability to integrate and scale voice, instant messaging and other web-based applications.

- PRIMUS owns and operates its own global VoIP "backbone" network connecting over 300 points-of-presence in over 80 countries in Asia-Pacific, the Americas and Europe. The PRIMUS network is supported by automated backroom systems and operating control centers. PRIMUS can terminate VoIP calls to virtually any destination in the world where such termination is not prohibited by law.

- Operating as a VoIP carrier for over two years, PRIMUS now has over a 6% worldwide market share for international VoIP traffic, according to a 2001 TeleGeography Report, primarily for services provided to other carriers. PRIMUS is now expanding through the launch of new products and the formation of third party relationships to extend its VoIP services directly to end-user business and consumer customers who will be able to directly access PRIMUS's global VoIP network.

- By owning and operating its own public switched telephone network (PSTN) of switching faculties and fiber optic cable capacity, PRIMUS is able to provide diversity, back-up, and disaster recovery for its VoIP network. The scale of PRIMUS's global network gives it a competitive edge over other carriers in its unparalleled ability to overlay and integrate its PSTN network with its VoIP backbone to provide quality of service assurances.

- PRIMUS also owns and operates its own global asynchronous transfer mode (ATM) and IP backbone network. As such, PRIMUS maintains peering relationships and Internet network facilities supporting IP services on a higher level than most pure-play VoIP providers.

- The ownership of global voice, ATM+IP and VoIP networks and peering relationships with other carriers and ISPs around the world enable PRIMUS to maintain a low cost structure and improved reliability and quality of service compared to other carriers.

- PRIMUS maintains a network operations center available on a 24x7 basis to monitor service availability and calling performance monitoring/routing any where in the world at any time of day. A customer service web site managed by PRIMUS is available to users and includes online automated support, e-mail support and toll-free telephone support.

- In addition to network and VoIP services, PRIMUS also provides secure and encrypted web-based billing features to include full call detail and account management information. Convenient payment options are also available to PRIMUS customers around the world.

PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL) is a global facilities-based Total Service 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 over 300 IP points-of-presence (POPs) throughout the world, ownership interests in over 23 undersea fiber optic cable systems, 21 international gateway and domestic switches, a satellite earth station and a variety of operating relationships that allow it 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 ATM+IP network. 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.

Statements contained herein may be "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on current expectations, are not strictly historical statements, and may differ materially from actual results. Forward looking statements include without limitation, those regarding management's plans, goals, expectations, guidance, forecasts, objectives, strategy and timing for future operations and products. Factors and risks that could cause actual results or circumstances to differ materially from those set forth or contemplated in forward-looking statements include: changes in business conditions, changes in the telecommunications or Internet industry or the general economy or capital markets; DSL, Internet and telecommunication competition; changes in financial, capital market and economic conditions; changes in service offerings or business strategies; inability to lease space for data centers at commercially reasonable rates; difficulty in provisioning VoIP services; changes in the regulatory schemes and regulatory enforcement in the markets in which we operate; restrictions on our ability to follow certain strategies or complete certain transactions as a result of our capital structure or debt covenants; the inability to reduce debt significantly; risks associated with the Company's limited DSL, Internet and Web-hosting experience and expertise; entry into developing markets; the possible inability to hire and/or retain qualified sales, technical and other personnel, particularly as we continue to attempt to grow our data-centric services, and manage growth; and risks associated with international operations (including foreign currency translation risks); dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; and dependence on the implementation and performance of the Company's global ATM+IP communications network. These factors are discussed more fully in PRIMUS's public filings, including its most recent 10-K filing with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date these statements were made. PRIMUS is not necessarily obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Contact:
     Contact: Jordan Darrow
     Company: PRIMUS Telecommunications Group
     Title: VP, Investor Relations & Corporate Communications
     Voice: 212-703-0116
     Email: jdarrow@primustel.com

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