iBasis Raises Price for China Voice Traffic Eight-fold

Company Moves Quickly to Alert Customers and Protect Business Ahead of Chinese Government-mandated Rate Increases

BURLINGTON, MASS. - October 29, 2002 - iBasis, Inc. (NASDAQ: IBAS), a leading carrier of international telecommunications traffic and a major carrier of traffic to China, today announced that on Friday, October 25, in anticipation of the unprecedented increase in termination costs of international calls to China, the company notified carrier customers of rate increases effective October 31^st, 2002.

iBasis issued the rate modifications ahead of receiving the official cost increase notification to provide its customers as much advance notice as possible of the imminent changes in the regulatory environment in China.

iBasis received notification from its China partners this morning (October 29) indicating that they are raising the termination rate for all international traffic into China, effective November 1, to comply with a recent mandate from the Ministry of Information Industry, the Chinese government agency responsible for regulating telecommunications in China.

This price increase is in contrast to the worldwide trend of declining average revenue per minutes (ARPM) and reverses three years of price declines on China traffic triggered by the expansion of competition in the China telecommunications market in 1999.

"While it is hard to predict market elasticity and the exact impact of this price increase," said Ofer Gneezy, president and CEO of iBasis, "it could result in a boost to revenue and margin as long as the decline in traffic volume is moderate. Our agility in implementing the rate change and our market leadership in China traffic put us in a good position to benefit from the change while continuing to meet customer demand for high quality termination in China."

iBasis is a major carrier of voice traffic to China with an estimated 25% of all voice traffic from the U.S. to China carried over the iBasis Network¹. In addition, China is one of the three highest volume destinations in the iBasis network, which includes points of presence in more than 90 countries.

iBasis expects all carriers licensed to terminate international telephone calls within China will be required to comply with the rate change. As a result, the increase is expected to affect all carriers sending traffic to China - not just iBasis or VoIP carriers.

About iBasis

Founded in 1996, iBasis (NASDAQ: IBAS) is a leading provider of wholesale international telecommunications services to large carriers and other service providers worldwide. Named by service providers as the #1 international wholesale carrier in Atlantic-ACM's 2002 International Wholesale Carrier Report Card, iBasis is a preferred provider of international voice services for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, Concert, Sprint, Telefonica, Telenor, Telstra, and WorldCom. The company's global VoIP infrastructure, The iBasis Network, spans more than 90 on-net countries and is the world's largest international Cisco Powered NetworkTM for Internet Telephony. Based on its revenue growth from 1997 through 2001, iBasis was named the #8 fastest-growing technology company in North America and the #1 fastest-growing technology company in New England in the Technology Fast 500 national program sponsored by Deloitte & Touche. 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, The iBasis Network, Internet Central Office, Internet Branch Office, ConnectPoint Global Access, and IP CallCard are trademarks of iBasis, Inc. 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 services and the timing and amount of revenue generated by these services; (ii) fluctuations in the market for and pricing of these services; (iii) potential inability of the company to maintain its NASDAQ listing; and (iv) the other considerations described as "Risk Factors" in iBasis' most recent Forms 10-K and 10-Q, and the company's other SEC filings. We have no current intention to update any forward-looking statements.