iBasis Enables Japanese Publisher KNN to Market Calling Cards to 15 Million Chinese Subscribers

Using iBasis Network & Hosted IP CallCard Service Puts KNN in Lucrative, Fast-Growing New Business

BURLINGTON, MASS. - October 8, 2002 - iBasis, Inc., (NASDAQ: IBAS), the leader in Internet-based voice communications, today announced that Kabushikigaisha Nityu NetMedia (KNN), publisher of the "Chinese Weekly" newspaper in Japan, is using the iBasis IP CallCard hosted platform and the iBasis Network to offer pre-paid calling card services to its more than 15 million subscribers in Japan.

"KNN's experience is a good example of how iBasis enables new entrants in the telecom market to establish market share very quickly," said Ofer Gneezy, president and CEO of iBasis. "The retail calling card market is a rapidly growing segment of the global telecommunications business. With our global VoIP footprint and wholesale IP CallCard service, we're able to provide a comprehensive solution for companies who have the customer base and the marketing capability to develop a very successful calling card service without spending capital on infrastructure."

KNN has established a large and loyal subscriber base providing Chinese language publications to the Chinese community in Japan. This is the company's first foray into telecommunications services. KNN is currently marketing pre-paid cards to residential consumers for calls from Japan to China and plans to expand into post-paid cards that it will offer to enterprise customers.

"iBasis makes it possible for us to offer our customers a new and valuable service with very high quality," said Dr. Du Xiao Yan, President of KNN. "By using IP CallCard and the iBasis Network, we are able to focus our resources on marketing and sales activity and to leverage our extensive customer base and distribution network to create a totally new source of revenue."

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. As is the case with international voice traffic in general, an increasing percentage of the calls generated by calling card users are expected to move to VoIP networks. Industry researchers Frost & Sullivan projects that 75% of all calling card traffic will be delivered over IP by 2007.

About IP CallCard

Through IP CallCard, iBasis facilitates the prepaid business of its partners and does not compete with them in their own markets. Service providers using IP CallCard as their pre-or post-paid billing platform enjoy rapid service deployment while minimizing risk and upfront expenses. Because iBasis provides all billing service components, providers are freed from concerns about operating costs or technical staffing and can concentrate their efforts on sales, distribution, marketing and customer care of their calling card service. IP CallCard gives service providers the most advanced authentication, authorization, and accounting (AAA) features available today in a fully realized and tested calling card solution. Real-time billing services provide superior customer account management, including billing information for postpaid accounts and administration of pre-paid calling card balances. Real-time deductions, limited PIN retries, and destination limiting are just a few of the fraud prevention features included in the IP CallCard Service.

IP CallCard's user-friendly interface quickly and easily guides the user through the authentication and authorization process. In addition, web-based customer care tools provide easy-to-use end-user service. IP CallCard's administration tools allow service providers to better manage prepaid accounts, allowing for control of PIN generation and rate setting flexibility.

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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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.