iBasis Launches ConnectPoint Global Access for Enhanced Service Providers

Leading Audio Conferencing and Pre-paid Calling Card Service Providers First to Leverage new iBasis VoIP Service for International Expansion

BURLINGTON, MASS. - October 1, 2002 - iBasis, Inc., (NASDAQ: IBAS), the leader in Internet-based voice communications, today announced its patent-pending ConnectPoint Global AccessTM service, a cost-effective alternative to International Toll Free Service (ITFS) and an ideal solution for providers of Calling Cards, Audio Conferencing and other enhanced services.  iBasis completed field trials of ConnectPoint Global Access with a number of customers earlier this year and has carried commercial traffic using the service worldwide for the past three months.   

ConnectPoint Global Access enables providers of enhanced services to allow their customers to access their service platform based in one country from major markets around the world using local phone numbers or national toll-free numbers in those markets. iBasis provides the local access, and calls are transported over The iBasis Network, the world's largest international Cisco Powered Network for Internet Telephony. In addition to realizing substantial savings in back-haul telecommunications costs, ConnectPoint customers are able to accelerate their entry into new international markets by taking advantage of the iBasis global infrastructure, while continuing to provide the highest quality service to end users. 

"Through our ConnectPoint offering, our advanced VoIP infrastructure enables us to pursue sources of traffic beyond the traditional wholesale international long distance market," said Ofer Gneezy, president and CEO of iBasis. "Conferencing and Pre-paid Calling Card service providers are particularly well positioned for rapid growth in the U.S. and other parts of the world. Now, with ConnectPoint Global Access, iBasis is well positioned to benefit from these opportunities."

According to IDC Worldwide Conferencing Services Market Forecast and Analysis 2001, the audio conferencing market is projected to grow from $1.8 billion in 2000 to $7.5 billion in 2005. Industry analysts at The Pelorus Group forecast that the Pre-paid Calling Card market will grow from $2.75 billion in 2000 to $5.1 billion in 2005.

The iBasis Network uses the Internet to provide international call quality that is indistinguishable from traditional PSTN-based calls. As a result of its network quality, iBasis has become one of the 10 largest carriers of international telephone calls¹ and was ranked by other carriers as the #1 international wholesale carrier in the 2002 International Wholesale Carrier Report Card published by the Atlantic-ACM industry analyst firm².

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 85 on-net countries and is the world's largest international Cisco Powered NetworkTM for Internet Telephony. Based on its revenue growth over the past five years, iBasis was named the fastest-growing technology company in New England by the Technology Fast 50, a 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' Annual Report on Form 10-K for its fiscal year ended December 31, 2001, and the company's other SEC filings. We have no current intention to update any forward-looking statements.