Peerless Network LLC Closes on Additional Equity Investment

Initial Investors Execute Option to Increase Stake to Facilitate
New Market Expansion
CHICAGO--(Business Wire)--
Peerless Network LLC, a provider of services that simplify
interconnecting voice and data traffic across disparate networks,
today announced that the company's initial investors have executed
their option to increase their investment in the company. With this
backing, Peerless Network is fully funded for new market expansion
without seeking additional capital. As such, the company will use the
funding to accelerate company growth and address increasing market
demand, starting in two new markets, Atlanta and Miami.

"The Peerless Network philosophy is simply this: true competition
in the marketplace benefits everyone," said John Barnicle, CEO and
president of Peerless Network. "To have previous investors provide
additional funding that resulted in a 27 percent increase in valuation
since January 2008 underscores the ongoing high level of confidence in
our ability to stake our claim and successfully compete in the
marketplace. Neutral Tandem's (Nasdaq:TNDM) attempts to thwart
competition through litigation roadblocks will not deter us from
bringing innovative services to our existing and future customers."

"The support of our customers in our existing markets has exceeded
our expectations and has laid the ground work for our expansion into
Miami and Atlanta. In fact, these cities were selected as a result of
direct customer requests," said Rick Knight, executive vice president
of sales and marketing of Peerless Network. "We are already certified
and have interconnection agreements in Georgia and Florida, enabling
us to hit the ground running and meet our customers' requirements in
record time."

Peerless Network offers a broad range of services to carriers and
non-carriers alike, with reliable and cost-effective solutions to
seamlessly interconnect or peer across multiple and diverse networks,
regardless of protocols or traffic types.

About Peerless Network

Peerless Network is a fully funded, privately held company focused
on simplifying the interconnection process for other
telecommunications service providers via a wide range of innovative
services. Based in Chicago, the company currently delivers services in
Chicago, New York, Philadelphia and St. Louis. Peerless Network
expects to be in a dozen major markets by late 2008 -- increasing
market presence three-fold. More information is available at
www.peerlessnetwork.com.

Calysto Communications
Kristen Keller, 404-266-2060 ext. 26
kkeller@calysto.com

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