PEER 1 Network Announces Record Third Quarter Results and Toronto Stock Exchange Listing

VANCOUVER, BRITISH COLUMBIA -- 05/15/08 -- 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 pre-loaded 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.

For complete details on any of the above, please refer to the Financial Statements and Management's Discussion & Analysis which will be available at www.sedar.com within 24 hours of the time of this release or at www.peer1.com.

EBITDA Reconcilation
(unaudited - prepared by management)
(in $ thousands) Quarter Ended
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 31-Mar-08 31-Mar-07

Net Profit 2,202 230
Income tax expense 1,500 312
Interest expense 471 814
Interest accretion on notes payable 22 54
Amortization of preferred share discount - 389
Amortization - licences, fixed assets and
 deferred network costs 2,881 2,713
Stock based compensation 399 150
Loss (gain) on disposal of assets (7) 82
Amortization of deferred gain (20) (30)
Foreign exchange loss (gain) (15) 14
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EBITDA 7,433 4,728

Integration costs - 90
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Normalized EBITDA 7,433 4,818

Non-GAAP Measures

PEER 1 reports EBITDA because it is a key measure used by management to evaluate the company's performance. PEER 1 believes that EBITDA is useful supplemental information as it provides an indication of the results generated by PEER 1's main business activities prior to taking into consideration how those activities are financed and expensed. EBITDA is not a recognized measure under Canadian GAAP, and accordingly investors are cautioned that EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with Canadian GAAP as an indicator of financial performance of PEER 1 or as a measure of the company's liquidity and cash flows. PEER 1's method of calculating EBITDA may differ from other issuers and, accordingly, EBITDA may not be comparable to similar measures presented by other issuers. The schedule above sets out PEER 1's EBITDA calculations.

About PEER 1

PEER 1, a 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 17 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.

Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in PEER 1's public filings with securities regulatory authorities.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.