Vancouver, Canada based hosting company PEER 1 promoted Fabio Banducci, the company’s Executive Vice President, to President. As a result, Lance Tracey resigned as President, but will continue as CEO and Chairman of the Board

September 8, 2006 - PEER 1 Network Enterprises, Inc (TSX-V:PIX) is pleased to announce that Fabio Banducci, the company’s Executive Vice President, has been promoted to the position of President. To make way for this promotion, Lance Tracey has resigned as President, but he continues as the Chief Executive Officer and Chairman of the Board.

The company’s Board of Directors has approved the adoption of a new 2006 Combined Incentive and Nonqualified Stock Option Plan under which 15,468,382 common shares have been reserved, representing 20% of the company’s presently outstanding share capital. The new plan is subject to shareholder and TSX Venture Exchange approval and will, when those approvals are received, replace the company’s existing stock option plan which reserves for issuance 10% of the company’s outstanding share capital from time to time.

The Board of Directors has granted options to acquire 1,946,700 to non-director officers of the company. The options are exercisable at a price per share of $0.63, expire on September 6, 2011 and vest, subject to adjustment in certain circumstances, as to 1/3 on September 6, 2007 and as to 2/3rds monthly in equal amounts over the 24 months ending September 6, 2009. In addition, 828,000 of the options are exercisable only after all requisite approvals of the 2006 Combined Incentive and Nonqualified Stock Option Plan have been obtained. After giving effect to these grants, the total number of incentive stock options outstanding represent approximately 10.2% of the company’s outstanding share capital.

About PEER 1
PEER 1, the leading Internet infrastructure solutions company provides full services to handle the needs of customers requiring 100% uptime for their online presence including network, co-location, and dedicated hosting services. Since its inception in 1999, the company has grown to include data centers and network points of presence in 16 major cities across North America and Europe, all connected by PEER 1’s world class IP (Internet Protocol) network. PEER 1 serves a variety of customers including hosting providers, online gaming companies, Internet phone (VoIP) companies and many small and medium-sized businesses. The company’s headquarters are in Vancouver, Canada and the stock is traded on the TSX Venture exchange under the symbol PIX.

For more information visit http://www.peer1.com.