PEER 1 Expands in Hottest Co-Location Markets

VANCOUVER, BRITISH COLUMBIA - PEER 1 Network Enterprises, Inc. (TSX-V: PIX) is pleased to report that its previously announced data center expansion in Vancouver is complete, increasing the company's co-location capacity by over 140 cabinet equivalents. 

In addition, PEER 1 is pleased to announce an expansion of its Toronto data center that will accommodate a further 125 cabinets, with completion scheduled before the end of June 2007.

Recent expansions in current PEER 1 data centers across North America have given the company the capacity to add approximately 65% more dedicated servers to its current base of over 16,000 dedicated servers and approximately 40% more co-location cabinet equivalents to its current base of over 1,100 cabinet equivalents.  This enables PEER 1 to significantly grow its customer base with modest incremental capital expenditures relative to building a new data center.

"Our data center expansions and increased capacity support our strategy for continued growth and margin improvement," said Fabio M. Banducci, PEER 1's President. "Demand continues to be strong for our high performance, co-location and dedicated hosting solutions."

About PEER 1

PEER 1 is a leading Internet infrastructure provider delivering highly scalable hosting and co-location solutions to ensure a client's online presence is fast performing and available 100% of the time. Since its inception in 1999, the company has grown to include data centers and network points of presence in 17 major cities across North America and Europe, all connected by PEER 1's world class Internet network.  PEER 1 serves a variety of small- and medium-sized businesses including emerging technology companies, hosting providers, online gaming providers, Internet phone (VoIP) companies, and professional services organizations.  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.