U.S. Parent Company Announces Plan of Reorganization Restructuring Expected to benefit Primus Canada

Toronto, Canada –March 16, 2009 – Primus Telecommunications Canada said today that its U.S. parent, Primus Telecommunications Group, Incorporated, together with three affiliated holding companies, have reached agreement with various noteholders on the terms of a consensual restructuring of their debt. The agreement, which is expected to be consummated through an expedited Chapter 11 filing in the United States, will result in a reduction of more than 50% in principal debt obligations and a 50% decrease in interest payments by the U.S. companies.

"This is good news for Primus Canada because it results in increasing Primus Canada’s ability to re-invest in our local operations," said Ted Chislett, president of Primus Canada. "Since 1997 Primus Canada has invested over $500 million in acquiring customers and network facilities in Canada"

"Primus Canada is a solid and profitable business that generates significant positive cash flow with over 40 consecutive quarters of positive EBITDA earnings. Primus Canada is financially independent and self sufficient," Mr. Chislett said. "Neither employees, customers, suppliers or business partners in Canada will be affected in any way by the financial restructuring activities of our U.S. parent."

"We expect only to benefit from the restructuring since a large portion of local profits that were used in part to service the parent company’s debt may now be available for investment in organic expansion as well as acquisitions of synergistic businesses throughout Canada. It is a ‘win-win’ situation for our parent and their bondholders, as well as Primus Canada and its customers, vendors and business partners in Canada."

About PRIMUS Canada
Primus Telecommunications Canada Inc. is the largest alternative communications carrier in Canada. The Company offers facilities-based voice, data, e-commerce, Web hosting, VoIP and broadband Internet services utilizing ADSL2+ technology. Primus Canada’s national network consists of nationwide switches with international connectivity through its parent company’s global network, ATM and IP nodes, and colocation facilities at major cities across the country. Primus Canada is also one of Canada's largest MVNO’s (Mobile Virtual Network Operator) offering PRIMUS Wireless service. 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.primus.ca.

Jeannie Tsang
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