PEER 1 Hosting Signs Multi-Year Colocation Agreement with Capgemini Canada

TORONTO, July 29 /PRNewswire-FirstCall/ - International hosting provider, PEER 1 Hosting (TSX:PIX), today announced that it has signed a multi-year colocation agreement with Capgemini Canada Inc.("Capgemini"), a member of the Capgemini Group, a leading global provider of consulting, technology and outsourcing services. Under the agreement, Capgemini is taking approximately one full Performance Optimized Data Centre (POD) of space, in PEER 1 Hosting's new flagship data centre located in northeast Toronto. The initial term of the agreement is five years and includes options for renewal and to expand the total amount of space utilized. Financial terms of the agreement were not disclosed.

"Just a few short months since the opening of our new Toronto data centre, we have been able to secure a key anchor client," said Fabio Banducci, President and CEO of PEER 1 Hosting. "We are proud to work with a company like Capgemini to enhance their own computing power and provide their clients with another solution to their hosting needs."

"Teaming with PEER 1 Hosting enables Capgemini and its affiliates to effectively deliver our high value services to our expanding client base," said Kim Lesley, Vice President of Capgemini Canada Inc. "The relationship between Capgemini Canada and PEER 1 Hosting is a powerful one in the Canadian marketplace and is designed to support a robust, secure, predictable service delivery for clients in a number of different industries."

PEER 1 Hosting's new US$40 million, 40,000 square foot state-of-the art Toronto data centre offers a complete range of services with managed hosting, dedicated hosting through the ServerBeach brand, and colocation services all available in the same facility for the first time. This is the most efficient data centre PEER 1 Hosting has built to date, with increased power densities, high reliability, and robust security. Building it in four sections, with each section built as a separate POD, enables customers to scale their data centre capacity to rapidly meet their evolving needs, while allowing PEER 1 Hosting to efficiently manage growth. Each of the four PODs has the capacity for approximately 270 cabinets, equivalent to roughly 7,500 servers.

About PEER 1 Hosting

PEER 1 Hosting is one of the world's leading IT hosting providers. The company is built on two obsessions: Ping & People. Ping, represents its commitment to best-of-breed technology, founded on a high performance 10GB SuperNetwork(TM) connected by 17 state-of-the-art data centres, 21 points-of-presence and 10 colocation facilities throughout North America and Europe. People, represents its commitment to delivering outstanding customer service to its more than 10,000 customers worldwide, backed by a 100 percent uptime guarantee and 24x7x365 FirstCall Support(TM). PEER 1 Hosting's portfolio includes Managed Hosting, Dedicated Servers under the ServerBeach brand, Colocation and Cloud Services. Founded in 1999, the company is headquartered in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 Hosting shares are traded on the TSX under the symbol PIX. For more information visit: www.serverbeach.com or www.peer1.com

Forward Looking Statements: 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 Hosting's public filings with securities regulatory authorities.

SOURCE Peer 1 Network Enterprises, Inc.