Cogeco Cable Announces Successful Completion of Bid for Peer 1 Network Enterprises

Tue Jan 29, 2013 9:00pm EST

* Reuters is not responsible for the content in this press release.

  MONTREAL, QUEBEC and VANCOUVER, BRITISH COLUMBIA, Jan
29 (MARKET WIRE) --
Cogeco Cable Inc. ("Cogeco Cable") (TSX:CCA) and Peer 1 Network
Enterprises, Inc. ("PEER 1") (TSX:PIX) announced today that 124,112,692
common shares (the "Deposited Shares") of PEER 1, representing
approximately 96.57% of the outstanding common shares ("Common Shares")
of PEER 1 (calculated on a fully-diluted basis), have been validly
deposited prior to the expiry of the offer (the "Offer") made by Cogeco
Cable, through its indirectly wholly-owned subsidiary 0957926 B.C. LTD.
(the "Offeror"), to acquire all of the issued and outstanding Common
Shares for $3.85 per Common Share in cash. All conditions of the Offer
have been satisfied and the Offer has now expired and will not be
extended. The Offeror has taken up all of the Deposited Shares and
payment for the Deposited Shares will be made on or before February 1,
2013 to Computershare Investor Services Inc., as depository under the
Offer, for payment to PEER 1 shareholders who have validly deposited
their Common Shares under the Offer.

    "We are excited that all conditions of our Offer have been satisfied and
are thrilled with the prospects this acquisition presents to Cogeco Cable
shareholders, customers and employees," said Louis Audet, President and
CEO of Cogeco Cable.

    "We are fully committed to implementing our growth strategy in the data
centre services sector and to further develop our robust service suite
for businesses across Canada, the U.S. and parts of Europe. PEER 1, along
with Cogeco Cable's subsidiary Cogeco Data Services, will focus on
delivering a seamless solution for our customers' increasingly
sophisticated and complex needs. The infrastructure and expertise of both
organizations provides us with the scale and scope to maximize potential
growth in the enterprise services market," concluded Mr. Audet.

    "This transaction opens new possibilities for our customers, management
and employees," said Fabio Banducci, President and CEO of PEER 1.
"Similar to Cogeco Cable and its subsidiaries, PEER1 strives to provide
exceptional customer service and deliver technological excellence to our
customers." 

    As the Offer was accepted by holders of more than 90% of the issued and
outstanding Common Shares (calculated on a fully-diluted basis), Cogeco
Cable will take control of PEER 1's board of directors and operations and
intends to acquire through the Offeror all of the remaining Common Shares
not deposited under the Offer pursuant to the compulsory acquisition
provisions in Section 300 of the Business Corporations Act (British
Columbia). Cogeco Cable expects to mail a notice of compulsory
acquisition (the "Notice of Compulsory Acquisition") to all remaining
holders of Common Shares shortly. Cogeco Cable further intends to cause
the Common Shares to be de-listed from the Toronto Stock Exchange and to
cause PEER 1 to cease to be a reporting issuer under applicable
securities laws as soon as possible.

    In connection with the completion of the Offer, Cogeco Cable has entered
into secured revolving credit facilities in the amount of the Canadian
equivalent of $250 million and having a maturity of four years as well as
secured term credit facilities in the amount of the Canadian equivalent
of $400 million and also having a maturity of four years, with a
syndicate of lenders led by National Bank of Canada and will fund the
payment for the Deposited Shares using the new credit facilities.

    ABOUT COGECO CABLE

    Cogeco Cable (www.cogeco.ca) is a telecommunications corporation and is
the second largest hybrid fibre coaxial cable operator in Ontario and
Quebec. Through its two-way broadband cable networks, Cogeco Cable
provides its residential customers with Analogue and Digital Television,
High Speed Internet ("HSI") and Telephony services. Cogeco Cable is also
present in the United States through its subsidiary, Atlantic Broadband,
whose head office is located in Quincy, Massachusetts. Atlantic Broadband
is ranked the 12th largest cable television system operator in the United
States and, serves a number of markets in Western Pennsylvania, Southern
Florida, Maryland, Delaware and South Carolina. Cogeco Cable provides as
well to its commercial customers, through its subsidiary Cogeco Data
Services, data networking, e-business applications, video conferencing,
hosting services, Ethernet, private line, VoIP, HSI access, data storage,
data security, co-location services, managed IT services, cloud services
and other advanced communication solutions. Cogeco Cable's subordinate
voting shares are listed on the Toronto Stock Exchange (TSX:CCA).

    ABOUT PEER 1 Hosting

    PEER 1 Hosting (www.peer1.com) 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-in-breed technology, founded on a high
performance 10Gbps FastFiber Network(TM) connected by 19 state-of-the-art
data centres and 21 points-of-presence 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).
Info-Tech Research Group recently named PEER 1 Hosting as a "Champion" in
its Canadian colocation and managed services Vendor Landscape report,
recognizing the company's strength in product offerings and enterprise
strategy in the global IT marketplace. PEER 1 Hosting's portfolio
includes Managed Hosting, Dedicated Servers under the ServerBeach brand,
Colocation and Cloud Services under the Zunicore brand. 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.peer1.com or www.peer1hosting.co.uk. 

    NOTE REGARDING FORWARD-LOOKING STATEMENTS 

    Certain statements contained in this press release may constitute
forward- looking information within the meaning of securities laws.
Forward-looking information may relate to Cogeco Cable's or PEER 1's
future outlook and anticipated events, business, operations, financial
performance, financial condition or results and, in some cases, can be
identified by terminology such as "may", "will", "should", "expect",
"plan", "anticipate", "believe", "intend", "estimate", "predict",
"potential", "continue", "foresee", "ensure" or other similar expressions
concerning matters that are not historical facts. In particular,
statements and information regarding the timing of payment for Deposited
Shares, the acquisition of Common Shares not deposited prior to the
expiry of the Offer pursuant to a compulsory acquisition transaction, the
mailing and filing of the Notice of Compulsory Acquisition, Cogeco
Cable's intention to delist the Common Shares and cause PEER 1 to cease
to be a reporting issuer are forward-looking statements. In addition,
statements regarding Cogeco Cable's or PEER 1's future operating results
and economic performance and its objectives and strategies are
forward-looking statements.

    These statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business
prospects and opportunities which Cogeco Cable or PEER 1, as applicable,
believes are reasonable as of the current date. While management
considers these assumptions to be reasonable based on information
currently available to Cogeco Cable or PEER 1, as applicable, they may
prove to be incorrect. Cogeco Cable and PEER 1 caution the reader that
the economic downturn experienced over the past few years make
forward-looking information and the underlying assumptions subject to
greater uncertainty and that, consequently, they may not materialize, or
the results may significantly differ from Cogeco Cable's and PEER 1's
expectations. It is impossible for Cogeco Cable or PEER 1 to predict with
certainty the impact that the current economic uncertainties may have on
future results. Forward-looking information is also subject to certain
factors, including risks and uncertainties that could cause actual
results to differ materially from what Cogeco Cable or PEER 1 currently
expect. These factors include technological changes, changes in market
and competition, governmental or regulatory developments, general
economic conditions, the development of new products and services, the
enhancement of existing products and services, and the introduction of
competing products having technological or other advantages, many of
which are beyond Cogeco Cable's and PEER 1's control. These factors also
include actions taken by PEER 1 shareholders in respect of the Offer and
the compulsory acquisition process. Therefore, future events and results
may vary significantly from what management currently foresees. For more
exhaustive information on these risks and uncertainties, prospective
purchasers should refer to the risk factors described in the management's
discussion and analysis of Cogeco Cable for the year ended August 31,
2012 and the risk factors described in the annual information form of
PEER 1 for the fiscal year ended June 30, 2012. Prospective investors
should not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While
management may elect to, Cogeco Cable and PEER 1 are under no obligation
and does not undertake to, update or alter this information at any
particular time, except as may be required by law.

Contacts:
Medias:
Rene Guimond
Vice President, Public Affairs and Communications
Tel.: (514) 764-4746

March Communications on behalf of PEER 1 Hosting
Sarah Love
Tel.: (617) 960-9881
PEER1HostingUS@marchpr.com

Analysts and investors:
Pierre Gagne
Senior Vice President and Chief Financial Officer
Tel.: (514) 764-4756

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