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Press release from CNW Group

PEER 1 NETWORK ENTERPRISES, INC. ANNOUNCES INTENTION TO COMMENCE NORMAL COURSE ISSUER BID

Wednesday, May 11, 2011

PEER 1 NETWORK ENTERPRISES, INC. ANNOUNCES INTENTION TO COMMENCE NORMAL COURSE ISSUER BID16:10 EDT Wednesday, May 11, 2011VANCOUVER, May 11 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), operating as PEER 1 Hosting, a leading provider of online IT infrastructure, announced today that it has received Toronto Stock Exchange approval of a Notice of Intention to commence a Normal Course Issuer Bid through the facilities of the exchange.  The Normal Course Issuer Bid will permit PEER 1 to repurchase for cancellation up to 6,028,818 of its common shares, being 5% of PEER 1's issued and outstanding common shares (as at May 10, 2011).  PEER 1 had 120,576,370 common shares issued and outstanding as at May 10, 2011.  The average daily trading volume of PEER 1's common shares for the period between November 1, 2010 and April 30, 2011 was 16,968 common shares.  In accordance with the rules of the TSX, the maximum number of common shares that can be purchased on a daily basis by PEER 1 is 4,242 common shares, subject to the block purchase exception.The board of directors of PEER 1 believes that market prices of the Company's common shares may not fully reflect the value of its business and future business prospects, that current market conditions may provide opportunities for PEER 1 to acquire common shares at attractive prices and that the purchases are an appropriate use of funds and will enhance shareholder value.PEER 1 previously commenced a Normal Course Issuer Bid on April 16, 2010 (the "2010 NCIB"), which expired on April 15, 2011.  Under the 2010 NCIB, PEER 1 purchased a total of 1,832,286 of its common shares at a weighted average price of $1.12 per share.  PEER 1's 2011 Normal Course Issuer Bid will commence on May 16, 2011 and it will run until the earlier of the date on which purchases under the bid have been completed, the date on which PEER 1 terminates the bid, and May 15, 2012.About PEER 1 HostingPEER 1 Hosting believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers.  As a global online IT hosting provider, PEER 1 Hosting offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and colocation solutions.  Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 Hosting ensures customers' online presence is always fast, always available.  Since 1999, PEER 1 Hosting has grown to include 17 state-of-the-art data centres and points-of-presence throughout North America and Europe.  The company's headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK.  PEER 1 Hosting's shares are traded on the TSX under the symbol PIX.  For more information visit: www.peer1.com or www.peer1hosting.co.uk.Forward Looking StatementsStatements 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.For further information: For investor inquiries please contact: David Feick The Equicom Group +1 (403) 218-2839 dfeick@equicomgroup.com For media inquiries please contact: Marcela Peake PEER 1 +1 (604) 909-6428 mpeake@peer1.com