PEER 1 Announces Record Q3Results and TSX Listing

[Charnell]

PEER 1 Network Enterprises, Inc. (TSX-V:PIX), a global provider of high performance Internet infrastructure, today released the company's financial results for the third quarter of fiscal year 2008 for the three months ended March 31, 2008. In addition, the company announced that the Toronto Stock Exchange (TSX) has approved PEER 1's application to have its shares listed on the TSX.

TORONTO STOCK EXCHANGE LISTING
The company is pleased to announce that its common shares will commence trading on the TSX on Tuesday, May 20, 2008 under its current trading symbol "PIX". Concurrent with listing on the TSX, PEER 1's common shares will be delisted for trading on the TSX Venture Exchange ("TSX-V"). "The listing of PEER 1's shares on the Toronto Stock Exchange will be a major milestone in PEER 1's evolution" said Fabio M. Banducci, PEER 1's president and CEO. "We look forward to the increased visibility that our graduation to the TSX will deliver to the company and to our shareholders."

RECORD THIRD QUARTER RESULTS
Financial highlights from the quarter include the following (all figures are reported in US dollars):

* PEER 1's revenue increased 21.42% to $22.77 million for the three months ended March 31, 2008, compared to $18.76 million for the three months ended March 31, 2007.
* Gross profit increased 47.57% to $10.34 million for the three months ended March 31, 2008, compared to $7.01 million for the three months ended March 31, 2007.
* Operating income increased 114.52% to $4.11 million for the three months ended March 31, 2008, compared to $1.92 million for the three months ended March 31, 2007.
* Income before income taxes was $3.70 million for the three months ended March 31, 2008 compared to $0.54 million for the three months ended March 31, 2007.
* Net income was $2.2 million for the three months ended March 31, 2008, compared to $0.23 million for the three months ended March 31, 2007.
* Normalized EBITDA increased 54.15% to $7.43 million for the three months ended March 31, 2008, compared to $4.82 million for the three months ended March 31, 2007.


"PEER 1's third quarter results build on the successes of previous quarters," said Mr. Banducci. "We are very pleased to report our seventh consecutive quarter of record profitable growth."

KEY DEVELOPMENTS

* During the quarter ended March 31, 2008, the company substantially completed its implementation of its extensive upgrade of the PEER 1 IP network. The total estimated capital expenditure related to this upgrade is approximately $4 million.
* On February 26th, PEER 1 announced that the company has partnered with Microsoft to offer 50 free developer sandbox servers for a 30-day trial. Web developers now have a chance to work with full control on a collection of Microsoft website development applications in a dedicated hosting environment. This is a unique opportunity for developers and agencies to explore both the internal and external aspects of testing and developing a website and other online applications using some of the latest Microsoft software that has been preloaded in to the sandbox server and is connected into PEER 1's extensive online network infrastructure.
* Working together in this collaborative and supportive environment enables the developers to build applications and compatible offerings, which can better meet customer needs and increase both business and customer revenue.
On January 17, PEER 1 announced that the company now offers Fibre Attached Storage (FAS) system options on its managed Storage-Area-Network (SAN) to deliver high performance and customizable data sharing and storage capability. The service will provide customers of all sizes with fast, high performing Storage Area Network at an affordable price point. This is in response to a growing demand for online infrastructure and data storage. The FAS solution is ideal for both fast growing businesses and established companies, such as SaaS, data warehousing or high transactional e-commerce environments, that require limitless amounts of storage, scalability and performance capabilities. The system uses the EMC SAN infrastructure, based in PEER 1's Atlanta, Miami, and Fremont CA data centers, which provides customers diverse geographic options. It is also fully customizable depending on the business requirements and growth structure of the customer.


Full details of earnings release: http://www.peer1.com/investors/earni...p#d_2008-05-15