In March 1999, the Lightning traded Peterson to the Pittsburgh Penguins organization. He became a free agent after the season, and the Nashville Predators signed him. During the 1999–00 season, Peterson spent the entire campaign with the Admirals, the Predators' IHL affiliate, scoring 32 points in the regular season and five in the playoffs. Peterson moved to Europe for the 2000–01 season, beginning the season with the SCL Tigers in Switzerland's National League A. In 10 games, he recorded three goals and two assists before moving to Germany to play for the Deutsche Eishockey Liga's Kassel Huskies. Peterson finished 2000–01 season with the Tigers and spent three more seasons with the club; his best statistical season in Germany was 2002–03, when he had 25 regular season points, along with three in the playoffs.