TORONTO--(BUSINESS WIRE)--Jan. 8, 2004--PRIMUS Telecommunications Canada Inc.

PRIMUS Canada's TalkBroadband(TM) offers local telephone service to onsumers and home offices across the country that have high-speed Internet

For the first time ever, Canadian consumers have a true alternative to traditional local service from the big phone companies, at an average 25 percent savings.

PRIMUS Telecommunications Canada Inc. (PRIMUS Canada) today launched TalkBroadband(TM), the first true alternative to traditional residential phone service in Canada, delivering 25 percent savings on average to consumers and home offices.

PRIMUS Canada, the wholly-owned subsidiary of McLean, Virginia-based PRIMUS Telecommunications Group, Incorporated (OTCBB:PRTL), a global telecommunications services provider offering an integrated portfolio of voice, data, Internet, and Web hosting services, is offering the new Broadband Voice Service(TM) immediately to all residential and home office high speed Internet subscribers across the country.

Starting at just $19.95 a month, TalkBroadband uses leading edge Voice Over Internet Protocol (VOIP) technology to transform high-speed Internet service into a local telephone connection simply, reliably and securely.

"TalkBroadband begins a new era for Canadian consumers looking for a reliable, simple and less expensive alternative to traditional phone service," says Ted Chislett, president, PRIMUS Canada. "It's the perfect solution for DSL subscribers wanting a second phone line or for cable high-speed Internet subscribers looking to replace their existing phone line or add a second one."

TalkBroadband Benefits and Features.

• Customers receive a home telephone number that can travel with them wherever there is access to high-speed Internet service (telephone DSL or cable). So a customer could go away for the weekend or overseas for a week and they could still be reached at their home phone number.
• Customers have the option to keep their existing telephone number (in serviceable areas) or add a new one, and can choose their area code.
• TalkBroadband is easy to set up, without the hassle and expense of a service call.
• The service works with a regular telephone: PRIMUS Canada provides a Broadband Voice Gateway box that connects easily to the phone and the subscriber's existing high-speed Internet modem.
• Customers can surf the Internet while talking on the phone.
• A wide selection of features is available, including Call Answer, Call Display and Call Waiting.
• TalkBroadband offers additional features not available on traditional phone services such as Call Transfer & 5-way Calling.
• TalkBroadband offers free long distance calling between PRIMUS Canada Talk Broadband customers on their Broadband Voice service.
• TalkBroadband customers can also select additional numbers and area codes for a small additional monthly charge, providing the customer a local presence in other areas of the country.
• TalkBroadband is an ideal solution for residential customers as well as small, home-based businesses. Customers can select from Toronto, Ottawa, Hamilton, Montreal, Vancouver, Calgary and Edmonton local numbers. Any high-speed Internet user in Canada, or anywhere in the world - no matter where they are located - can take advantage of TalkBroadband by selecting an area code and number from one of the cities above. For example, consumers who live in Barrie (705) can select a Toronto (416) area code and number, ensuring that calls to and from Toronto are not subject to long distance charges.

"Since Canada's high-speed Internet penetration rate is the third highest in the world and is continuing at double-digit growth, there are literally millions of Canadians who can take advantage of PRIMUS Canada's TalkBroadband service,"says Andrew Day, senior vice-president, Residential Services, PRIMUS Canada. "Our more than 900,000 retail customers also provide us with a strong platform to reach Canadians with this new service."

PRIMUS Canada will support the launch of TalkBroadband via a multi-media advertising campaign across Canada. In coming months, PRIMUS Canada will expand the service: customers in other major Canadian centres will be able to subscribe to TalkBroadband service using their own area code. Operator services and 911 will not be offered at launch, however development is underway and the services will be enabled on a market by market basis in the near future.

PRIMUS Canada also will introduce broadband phone services tailored specifically for larger business customers, at significant cost savings over traditional commercial phone service in the near future.

Residential Pricing

• PRIMUS Canada's TalkBroadband offers basic phone service for just $19.95 a month, 15 percent less on average than the basic service customers pay now for traditional residential phone service.
• PRIMUS Canada's TalkBroadband lowers the cost of adding features, so customers can get the most out of their home phone service. Bundles including basic phone service plus Call Answer, Call Waiting and Call Display start at just $29.95 a month, with savings of 30 percent on average over traditional phone service (also available is a bundle including basic service plus 6 features, for $34.95).
• TalkBroadband offers great savings on long distance plans, with flat rate calling as low as $2.95 a month for 60 Canada/U.S. minutes and unlimited Canada/U.S. calling for just $20 a month. Subscribers also receive PRIMUS Canada's best available overseas rates.
• Separate Commercial offers are available starting at $29.95/month.

About PRIMUS Canada

PRIMUS Telecommunications Canada, Inc. is the largest alternative communications carrier in Canada with over 900,000 retail customers. The Company offers facilities-based voice, data, e-commerce, Web hosting and Internet services. As a leading Internet service provider in Canada, PRIMUS Canada has approximately 60,000 Internet subscribers served by a national network of Internet points-of-presence (POPs) for dedicated and dial-up access. PRIMUS Canada also offers local services to businesses, bundling them with its long distance and Internet services. The Company has a fully redundant and diverse SONET network across Canada, extending from Quebec City to Victoria. PRIMUS Canada's national network consists of Nortel DMS 500 switches with international connectivity through its parent company's global network, and ATM and IP nodes at major cities across the country. These network elements provide an integrated and converged backbone for all of PRIMUS Canada's voice, data, Internet and private line services. PRIMUS Canada is a wholly-owned subsidiary of McLean, Virginia-based PRIMUS Telecommunications Group, Incorporated (OTCBB:PRTL). PRIMUS Canada news and information are available at the Company's Web site at www.primustel.ca.

About PRIMUS Telecommunications Group, Incorporated

For PRIMUS Telecommunications Group, Incorporated and PRIMUS Telecommunications Canada Inc.:
Statements in this press release concerning future revenue, services and growth constitute "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. Such statements are based on current expectations, and are not strictly historical statements. Factors and risks that could cause actual results or circumstances to differ materially from those set forth or contemplated in forward-looking statements include, without limitation: changes in business conditions; fluctuations in the exchange rates of currencies, particularly any strengthening of the United States dollar relative to foreign currencies of the countries where we conduct our foreign operations; adverse interest rate developments; whether we complete one or more financings; fluctuations in prevailing trade credit terms or revenues due to the adverse impact of, among other things, further telecommunications carrier bankruptcies or adverse bankruptcy related developments affecting our large carrier customers; the possible inability to raise additional capital when needed, or at all; the inability to reduce, repurchase, exchange or restructure debt significantly, or in amounts sufficient to conduct regular ongoing operations; changes in the telecommunications or Internet industry; adverse tax rulings from applicable taxing authorities; digital subscriber line, Internet and telecommunications competition; changes in financial, capital market and economic conditions; changes in service offerings or business strategies; difficulty in migrating or retaining customers, including former Cable & Wireless customers associated with our recent acquisition of this customer base, or integrating other assets; difficulty in providing voice-over-Internet protocol and wireless services; changes in the regulatory schemes or requirements 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; risks associated with our 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, and to manage growth; risks associated with international operations; dependence on effective information systems; dependence on third parties to enable us to expand and manage our global network and operations; dependence on the implementation and performance of our global asynchronous transfer mode + Internet protocol communications network; adverse outcomes of outstanding litigation matters; and the outbreak or escalation of hostilities or terrorist acts and adverse geopolitical developments. As such, actual results or circumstances may vary materially from such forward-looking statements or expectations. Readers are also cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. We are not necessarily obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult the discussion of risks and uncertainties under "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Short and Long-Term Liquidity Considerations and Risks"; and "-Special Note Regarding Forward-Looking Statements" contained in our quarterly report on Form 10-Q for the period ended September 30, 2003, as filed with the Securities and Exchange Commission.

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