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PRIMUS Telecommunications Obtains Additional Financing And Further Reduces Vendor Debt

Market Wire, April, 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 that it has obtained additional financing and further reduced debt. These initiatives are part of the Company's goal to achieve positive free cash flow from operations and financial self-sustainability.

PRIMUS has received additional funding through an increase in its existing credit line with RFC Capital Corporation, a division of Textron Inc. The estimated net cash proceeds of US$10 million increases the existing line of credit to approximately US$30 million.

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PRIMUS also announced that it has reduced its existing vendor debt and related future commitments by $19.5 million. Through a global settlement, the Company paid $5 million in cash, will pay an additional $1.5 million by April 2, 2003, and has issued 1,200,000 shares of PRIMUS common stock to the vendor for the elimination of $17.8 million in existing vendor debt and $1.7 million in future related service obligations. This vendor debt had interest payments of $1.2 million in 2002, and its retirement represents an additional $1.4 million in future interest savings (assuming the vendor debt was held to maturity) as well as the elimination of principal payments which were scheduled to have been made over the next four years.

"We are pleased to report these transactions as the latest development in PRIMUS's continuing efforts to reduce debt, improve cash flow and increase liquidity," said K. Paul Singh, Chairman and Chief Executive Officer of PRIMUS.

PRIMUS Telecommunications Group, Incorporated (NASDAQ: PRTL) is a global facilities-based Total Service Provider offering bundled data, Internet, digital subscriber line (DSL), e-commerce, web hosting, enhanced application, virtual private network (VPN), voice and other value-added services. The Company 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, 23 international gateway and domestic switches, and a variety of operating relationships that allow the Company 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, the Company 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 the Company's Web site at www.primustel.com.

Statements contained herein regarding prospects for further debt reductions, future cash flow and liquidity are "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. Among factors that could cause actual results to differ materially from forward looking statements are changes in business conditions; changes in the telecommunications or Internet industry or the general economy or capital markets; DSL, Internet and telecom competition; changes in service offerings or business strategies; inability to lease space for data centers at commercially reasonable rates; difficulty in provisioning Voice-over-Internet Protocol 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 possible inability to raise capital when needed, or at all; the inability to reduce, exchange or restructure debt significantly, or in amounts sufficient to conduct regular ongoing operations; risks associated with PRIMUS'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 managing rapid growth; 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 changes in financial, capital market and economic conditions. These factors are discussed more fully in PRIMUS's public filings, including its most recent 10-Q and 10-K filings 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.

PRIMUS Telecommunications Obtains Additional Financing And Further Reduces Vendor Debt

Market Wire, April, 2002

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