PEER 1 Network Enterprises, Inc. (“PEER 1”) (TSX: PIX) announced today that they have entered into an

agreement (“Support Agreement”), pursuant to which Cogeco Cable has agreed to acquire all of the issued

and outstanding shares of PEER 1 by way of takeover bid (the “Offer”). PEER 1 shareholders will receive

$3.85 in cash per share valuing PEER 1’s equity at approximately $526 million on a fully diluted basis and its

enterprise value at approximately $635 million. The Offer represents a premium of 32.1% to PEER 1’s 20

day volume weighted average share price. Cogeco Cable has entered into lock-up agreements with the

board of directors, certain key management, and certain key shareholders of PEER 1 representing in

aggregate approximately 62% of the fully diluted shares outstanding to tender their shares to the Offer.

PEER 1 is one of the world’s leading internet infrastructure providers, specializing in managed hosting,

“Data centre services are a key strategic focus for Cogeco Cable, and this acquisition is consistent with

Cogeco Cable’s commitment to grow its presence in the sector. This acquisition enhances the company’s

ability to provide complex co-location and managed data centre services to our customers. There are

significant opportunities for growth including increasing Cogeco Cable’s penetration of the small and

medium-sized business segment, gaining market share in the enterprise services market and maximizing the

potential of current services offered” said Louis Audet, President and CEO of Cogeco Cable.

long-term customer relationships,” said Louis Audet, President and CEO of Cogeco Cable. “It further

underscores our ongoing commitment to support our customers as they expand their businesses locally and

globally. We warmly welcome PEER 1 professionals and believe that our combined businesses will provide

new and larger growth opportunities for all our employees and customers.”

The Board of Directors of PEER 1 has received an opinion from RBC Capital Markets that, based upon and

subject to the assumptions, limitations, and qualifications in such opinion, the consideration to be received

under the Offer is fair, from a financial point of view, to PEER 1’s shareholders. The Board of Directors of

day right to match the superior proposal. If the transaction is not completed as a result of PEER 1 accepting

a superior proposal or in other specified circumstances, a termination fee equal to $18.5 million will be paid

to Cogeco Cable.

A take-over bid circular containing the full details of the Offer and other related documents will be filed and

mailed to PEER 1 shareholders on or about December 24, 2012. The Offer is conditional on the tendering of

at least 66 2/3% of the issued and outstanding PEER 1 shares to the Offer, the receipt of regulatory

approvals and the satisfaction or waiver of other customary conditions. The Offer will be open for acceptance

for a period of not less than 35 days and is not conditional on financing. Cogeco Cable is financing the

transaction through available resources, including a new acquisition facility provided by National Bank

National Bank Financial lnc. acted as financial adviser and McCarthy Tétrault LLP acted as legal adviser to

Cogeco Cable in connection with the transaction and Stikeman Elliott LLP acted as legal adviser to Cogeco

Cable in connection with the acquisition financing. National Bank of Canada has underwritten the acquisition

financing with Norton Rose Canada LLP acting as legal adviser. In addition, Cheverny Capital Inc. provided

certain additional financial advice in the context of the transaction. The Special Committee of PEER 1 was

advised by RBC Capital Markets and Torys LLP acted as legal adviser.

Cogeco Cable has retained Kingsdale Shareholder Services Inc. (“Kingsdale”) to act as its solicitation agent

in connection with the Offer. PEER 1 shareholders with questions about the process to submit their

certificates or to tender to the Offer may contact the Information Agent, Kingsdale Shareholder Services Inc.

Cogeco Cable will host a conference call for investors and analysts to discuss the transaction:

Friday, December 21, 2012 at 8:30 a.m. (Eastern Standard Time)

Media representatives may attend as listeners only.

Please use the following dial-in number to have access to the conference call by dialing five minutes before

Cogeco Cable (www.cogeco.ca) is a telecommunications corporation and is the second largest hybrid fibre

coaxial cable operator in Ontario and Québec. 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 the following areas: 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,

two obsessions: Ping & People. Ping, represents its commitment to best-in-breed technology, founded on a

high performance 10Gbps FastFiber Network™ 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™. 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.