December 5, 2002

News Release: Peer 1 Reports 327% Revenue Increase Over Previous Year and Expects to be Cash Flow Breakeven in December 2002

Peer 1 Network Enterprises Inc. (TSX:PIX), a leading North American provider of high performance Internet bandwidth and server co-location facilities worldwide, today announced financial results for the year-ended August 31, 2002.

Peer 1 Network's revenue for the year ended August 31, 2002 was $5,912,868, an increase of 327% over the previous year. The previous year's revenue was $1,384,823. This growth is attributed to the establishment of new facilities in Toronto and Montreal and subsequently in New York. The company results also benefited from highly successful quarterly sales promotions and further development of a well-received referral program. Geoff Hampson, president and CEO of Peer 1 Network commented 'The recent completion of our New York facility is highly strategic as part of our ongoing expansion into the U.S. Our presence in key U.S. markets will continue to strengthen our position in North America and globally'.


Peer 1's monthly recurring revenue base continues to grow at a pace of approximately 10% month over month. Cash flow breakeven is anticipated in December of 2002 with monthly billing at approximately $950,000.


'Expansion of our co-location facilities and completion of our fully scalable network has positioned the company for future growth. These investments, infrastructure improvements and an increase in sales and marketing personnel contributed to an operating loss of $4,373,702,'said James P. Taylor, Chief Financial Officer of Peer 1 Network. 'Operating expenses are not expected to rise while gross margins and net earnings are anticipated to improve over the coming year as capacity utilization increases'.


Year Highlights


* Completed RTO, raised funds for expansion and listed on the TSX Venture Exchange


* Completed establishment of data centres in Toronto, Montreal and, New York


* Peer 1 announced special service provision offers for WorldCom and GT customers in the wake of those networks financial difficulties.


* Upgraded the Peer 1 backbone network to OC-12 and OC-48


* Upgraded POPs in each company service market to support redundant architecture and GigE as required


To view Peer 1 Network Enterprises Inc. complete year end results please contact the company or visit SEDAR at www.sedar.com


About Peer 1 Network


Peer 1 Network provides high performance Internet bandwidth and server co-location facilities to companies across North America. Building on a redundant, 100% Cisco powered internal network, Peer 1 guarantees 100% uptime Internet access for companies with mission-critical applications. Since its inception in 1999, Peer 1 Network has established local offices and co-location facilities in Vancouver, Toronto, Montreal and New York, with additional co-location facilities in Seattle. The headquarters are in Vancouver, British Columbia. The company trades on the TSX Venture Exchange under the symbol PIX. More information is available at http://www.peer1.net/.


PEER 1 NETWORK ENTERPRISES INC.

Geoffrey Hampson, President and Director

THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISSAPROVES OF THIS PRESS RELEASE

FOR FURTHER INFORMATION PLEASE CONTACT: Peer 1 Network Greg Lytle Investor Relations (604) 839-6946 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or Peer 1 Network Deb Bussey Corporate Communications Manager (604) 683-7747 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or Media Contact: Rick Hall (416) 967-3482 or Cell (416) 575-6300 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.


WEBSITE EMAIL