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Thursday September 9, 6:01 am Eastern Time
Company Press Release
Primus Launches Operations in France
European Operations Now Span 11 Countries
MCLEAN, Va.--(BUSINESS WIRE)--Sept. 9, 1999--PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL - news), a global facilities-based voice, data and Internet telecommunications provider, announced today that it has begun offering switched long distance services in France through its newly-activated gateway switch in Paris.
PRIMUS's Ericsson AXE 10 international gateway switch is located in Paris and interconnected with France Telecom and a number of other carriers providing competitive access.
This gateway switch is currently connected to PRIMUS's global network that connects nearly 30 countries worldwide. With the launch of these services, PRIMUS has commenced commercial operations of its French subsidiary, PRIMUS Telecommunications SA (PRIMUS France).
''We are very excited to make this announcement, marking the fulfillment of another major strategic initiative for PRIMUS,'' said K. Paul Singh, Chairman and Chief Executive Officer of PRIMUS Telecommunications Group, Incorporated. ''We are already off and running in France with revenue-generating commercial traffic flowing through our international gateway switch. Consistent with our 'one-stop-shop' philosophy, our facilities in France will be vertically integrated to offer bundled communications packages of voice, data and Internet services.''
''France is a core international gateway market for PRIMUS's European operations. In addition to our full-service entry to France, recent European developments include the June 1999 acquisition of Telegroup's retail business and assets, the May 1999 acquisition of facilities-based German Internet service provider (ISP) TCP/IP and capital investments in pan-European fiber capacity. We have significantly increased our presence in Europe and are now more competitive in this market than ever before. We currently expect to have a revenue run rate in excess of $220 million by year end 1999 from our European operations.''
In Europe, PRIMUS offers facilities-based services in the United Kingdom, Germany and, now, France -- the region's three largest markets and among the top five largest in the world. The Telegroup and TCP/IP acquisitions provided PRIMUS with network infrastructure to enhance and to expand the Company's European presence.
PRIMUS's current operations in Europe access over 25 major cities located in 11 countries, including Austria, Denmark, England, France, Germany, Italy, The Netherlands, Norway, Spain, Sweden and Switzerland.
Within and between each country, local facilities are interconnected with the PTT and/or a variety of competitive service providers; connectivity to PRIMUS's global network have been established through ownership interests in undersea fiber optic cable systems, including Atlantic Crossing 1, Aphrodite, Arianne, CANTAT, Gemini and TAT 12/13.
PRIMUS's European fiber optic network is complemented by
satellite coverage through the Company's London-based INTELSAT Type A
earth station.
PRIMUS utilizes multiple marketing channels to address the various retail sales markets throughout Europe. In the United Kingdom, France and Germany, PRIMUS subsidiaries rely on advertising and in-bound telemarketing to build their residential and ethnic customer bases, and direct salesforces and agents for small- and medium-sized businesses and large multinational accounts.
In other European markets, PRIMUS benefits from the experienced agent salesforce from the Telegroup acquisition.
Speaking about PRIMUS's expansion plans, Mr. Singh commented, ''Future capital expenditure plans earmarked for network expansion will focus on Europe and address Internet/data-related service platforms. PRIMUS's continued infrastructure build-out in Europe will maintain the 'smart build' focus that we have consistently employed on a global basis.''
''We believe our aggressive attack on the European market and an increasing amount of voice, data and Internet traffic in France will contribute to PRIMUS reaching its goal of an annualized revenue run rate of $1 billion by year end 1999.''
PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL - news) is a global facilities-based telecommunications company providing domestic and international long-distance voice, data, Internet, private network and value-added 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, the Company had at the end of its second quarter 1999 an annual revenue run rate in excess of $725 million and currently serves over 1.7 million corporate, small- and medium-sized business, residential and telecommunication carrier customers located in the North America, Europe and Asia-Pacific regions of the world.
News and information are available at the Company's Website at www.primustel.com.
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 and strategy 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 and 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 of the network.
These factors are discussed more fully in PRIMUS's public filings, including its most recent 10K and 10Q filings and the prospectus dated August 2, 1999, filed with the Securities and Exchange Commission.
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