iBasis Voted #1 International Wholesale Carrier

VoIP Leader Ranked Atop Global Industry Leaders; Atlantic-ACM Study Predicts VoIP Will Continue to Be Fastest Growing Wholesale Voice Market

BURLINGTON, MASS. -February 19, 2002 -iBasis, Inc., (Nasdaq: IBAS), the leader in Internet-based voice communications, today announced that it has been ranked by carriers as the world's best international wholesale carrier in the 2002 International Wholesale Report Card published by telecommunications analyst firm Atlantic-ACM. The report ranks the world's carriers based on their overall quality as wholesale providers during 2001, with ratings for customer service, provisioning, price competitiveness, products and billing services. Atlantic-ACM analyzed customer ratings of international wholesale providers, comparing the service ratings of many of the world's largest carriers, including AT&T, MCI Worldcom, Sprint, British Telecom, Cable & Wireless, Qwest, Deutsche Telekom, France Telecom, Telecom Italia, Singapore Telecom, Telstra, and VoIP providers iBasis and ITXC.

"We asked buyers of wholesale telecommunications services to rate the services of their emerging and traditional providers. The carriers in our survey define a `Who's Who' of the global wholesale market. And because the survey's responses reflect unfiltered feedback from knowledgeable consumers of wholesale services, our International Wholesale Report Card presents a compelling view of the international wholesale vendors today," said Dr. Judy Reed Smith, CEO of Atlantic ACM. "Our traditional wholesale telecommunications survey has been one of the industry's most important benchmarks for six years. This second, internationally-focused research adds new depth to the work by gathering the opinions of those carriers who buy wholesale services from emerging as well traditional wholesalers. What is most striking about the results of this additional research is the speed at which emerging VoIP players, such as iBasis, have taken their place among the ranks of the world's largest carriers. Our study's results indicate that iBasis' provisioning efficiency, customer focus, pricing, and service flexibility positions them as a leader in the international wholesale market moving forward."

The Atlantic-ACM study highlights the reasons why the world's largest carriers continue to seek the services of iBasis, and why some of the large, incumbent carriers may not have rated as highly. While the international voice services market is expected to be worth more than $70 billion, for many large carriers, international service is not a core business, and generally represents about 5% of revenues. At the same time, the cost of maintaining global service operations is disproportionately high. Outsourcing international traffic to a VoIP carrier offers service providers a powerful competitive advantage by lowering the cost of transport, as well as overall global infrastructure and service support requirements. Carriers interested in purchasing a copy of the International Wholesale Report Card should contact Atlantic-ACM (www.atlantic-acm.com) .

"This study confirms our status as a superior wholesale provider for the world's largest carriers. We believe that the large volumes of international traffic pouring onto our global Internet telephony network are a leading indicator of a fundamental shift that has become increasingly clear to the world's major telcos - that all international voice traffic will eventually travel over IP," said Ofer Gneezy, president and CEO of iBasis.

iBasis 2001 Momentum
Atlantic-ACM's International Wholesale Report Card reflects iBasis' emergence as one of the world's leading carriers - of any type. In 2001, the company grew to become:

· One of the top 10 US-based international carriers, and one of the world's top 20 carriers of international traffic (based on voice traffic statistics from industry analyst publication TeleGeography 2002)

· The VoIP carrier of choice for Tier 1 carriers, the world's largest and most demanding carriers. More than 60 percent of iBasis traffic and revenues are generated by Tier 1 carriers. iBasis' service quality is indistinguishable from that of traditional phone networks, and the company has more than 150 carrier customers worldwide.

· A truly global carrier whose Internet telephony network comprises 620 Points of Presence (PoPs) in more than 80 countries.

In 2001, iBasis saw rapid growth across all regions:

· Europe - Three-fold revenue growth, with 19 major carrier customers in the region, including Cable & Wireless (UK), an $11 billion leader in global telecommunications and the world's seventh largest international carrier. iBasis carries approximately 15% of all the voice traffic to Russia from both the UK and Germany¹.

· Latin America - Regional revenue growth of 138%, with iBasis market share exceeding 20% on the US to Argentina route.² iBasis has 35 carrier relationships in the region, including such major regional carriers as Telefonica and Telecom Argentina.

· Asia - Further extending its regional leadership in VoIP, iBasis grew its 2001 Asian revenues by 71% year-over-year. Major regional carrier customers include China Unicom, China Mobile, Australia's Telstra, Japan's NTT, and The Communications Authority of Thailand. More than 20% of all the US voice traffic to China travels over The iBasis NetworkTM ³.

About Atlantic-ACM
ATLANTIC-ACM is an international strategy consulting and research firm founded in the early 1980's and is well known for its exclusive analysis of the competitive telecommunications industry in the United States. The company offers authoritative public reports on the industry, proprietary consulting to companies in converging and networked communications, and merger/acquisition counsel. ATLANTIC-ACM assists clients in evaluating telecommunications opportunities for successful investment, market entry, and long-term business planning. For more information visit the ATLANTIC-ACM website at www.atlantic-acm.com .

About iBasis
Founded in 1996, iBasis (Nasdaq: IBAS) is the leader in Internet-based voice communications. iBasis delivers toll quality international voice services and provides the infrastructure for hosted communications solutions, including speech-enabled content, e-commerce and customer service applications. The company's customers include many of the largest enterprises and carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, Concert, ExxonMobil, Gannett, H&R Block, Home Shopping Network, Morgan Stanley, NTT, Telefonica, Telenor, Telstra, Sabre Group, Sprint, Western Union, and WorldCom. iBasis' hosted, enhanced service solutions include SpeechPortTM, a scalable, customizable ASP environment for speech-enabled business solutions. The iBasis Network is the world's largest international Cisco Powered Network for Internet Telephony. iBasis is listed in both the Russell 2000® and Russell 3000® Indexes. The company can be reached at its worldwide headquarters in Burlington, Massachusetts, USA at 781-505-7500 or on the Internet at www.ibasis.com .

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Assured Quality Routing and iBasis are registered marks, VoCore is a service mark, The iBasis Network, Internet Central Office, Internet Branch Office, IP CallCard and SpeechPort are trademarks of iBasis, Inc. or its subsidiaries. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems, Inc. All other trademarks are the property of their respective owners.

Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release, including those relating to the company's current expectations regarding revenue growth, sources of revenue, margin improvement and future capital expenditures constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, (i) the extent of adoption of the company's voice-based Internet services and the timing and amount of revenue generated by these services; (ii) fluctuations in the market for and pricing of VoIP services; and (iii) the other considerations described as "Risk Factors" in iBasis' Annual Report on Form 10-K for its fiscal year ended December 31, 2000, and the company's other SEC filings.