PEER 1 Continues Rapid Growth with Network Upgrade

Structure08, San Francisco – June 25, 2008 – PEER 1 Network Enterprises, Inc. (TSX: PIX), a leading provider of online IT infrastructure, has completed a comprehensive, standardized network upgrade to 10GB/OC192. The upgrade strengthens the IT platform needed for online business growth and new technologies, as well as helping to enable continued innovation in the market. The upgrade also maximizes PEER 1’s strategy for offering new infrastructure architectures and its capability to support new technology development.

PEER 1’s move to the new 10GB/OC192 architecture enables higher throughput and packet-per-second capability, which meets the needs of industries such as VoIP and gaming. Additionally, the upgrade enables PEER 1 to provide the highest possible bandwidth required by companies specializing in rich-media and streaming applications.

“The growth of new technologies in the IT infrastructure and managed hosting markets is changing the landscape significantly,” said Antonio Piraino, senior analyst with Tier 1 Research. “The eventual winners in this space will be those companies that are best able to leverage these new technologies in concert with the efficient use of existent resources to produce services that are genuinely flexible and always available.”

PEER 1’s long-term strategy for implementing new market innovations is to partner with companies that are experts in specific technologies. In this way the company will not be tied down to an exclusive technology, but instead can take full advantage of the dynamic infrastructure market. This also gives PEER 1 the flexibility to continue to grow and develop with partners as the technology matures.

At the same time, PEER 1’s extensive network and hosting services provide the unique opportunity to test what works best for its customers. Since the core requirements for both new technologies and the PEER 1 network are similar, PEER 1 truly understands what is needed to deliver new platforms. And with the strength of its network new technologies can integrate easily into the company’s full service solution offerings.

“PEER 1's strategic development for these new technologies enables us to continue delivering world-class service for our customers now and in the future,” said Fabio Banducci, CEO of PEER 1. “We are committed to help businesses realize the growing possibilities of the Internet. With the power and breadth of the PEER 1 network, we are in a unique position to promote and support more powerful solutions to benefit both our customers and the industry in general.”

The company’s distinctive approach enabled PEER 1 to report seven consecutive quarters of record profitable growth, according to third quarter financial results released earlier this year. PEER 1’s world class network is geographically diverse, including 17 data centers and POPs in major cities across North America and Europe.

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About PEER 1

PEER 1, a leading online IT infrastructure provider, believes in the limitless opportunity of the Internet and the business growth and continuity it provides for its more than 10,000 customers. PEER 1 delivers highly scalable managed hosting and co-location solutions, and self-managed hosting through its ServerBeach brand, to ensure customers' online presence is always fast, always available. Since 1999, PEER 1 has grown to include data centers and network points of presence in 17 major cities across North America and Europe. Serving a variety of companies, PEER 1 offers solutions that grow through every stage of web commerce, regardless of company size. The company's headquarters are in Vancouver, Canada and the stock is traded on the TSX under the symbol PIX. For more information visit: www.peer1.com and www.serverbeach.com.