Arbinet Corporation to be Acquired by Primus Telecommunications Group in Stock-for-Stock Transaction

Arbinet Corporation

("Arbinet") today announced that it has signed a definitive agreement to be acquired by Primus Telecommunications Group Incorporated (PMUG). Under the terms of the merger agreement, which has been approved by the Board of Directors of Arbinet, upon recommendation by its special committee which was appointed to evaluate the advisability of the transaction, and by the Board of Directors of Primus, Arbinet common shareholders will receive shares of Primus common stock in exchange for the Arbinet common stock they own. The transaction is valued at an aggregate value of approximately $28 million. Based on the companies' current capitalization, Arbinet shareholders will be expected to own approximately 23% of the combined company, and Primus shareholders will be expected to own approximately 77% of the combined company upon the closing of the transaction.