iBasis Interconnects with T-Systems International Carrier Sales and Services (ICSS) for Exchange of International Voice Traffic

BURLINGTON, MASS. - October 28, 2002 - iBasis, Inc., (NASDAQ: IBAS), the leader in Internet-based voice communications, today announced that T-Systems, a division of the Deutsche Telekom group, the incumbent carrier in Germany, is interconnecting with The iBasis NetworkTM for global service. T-Systems' interconnection to iBasis will enable them to route international voice traffic over The iBasis Network, the world's largest Cisco Powered Network for Internet telephony as well as complete calls for iBasis in markets T-Systems serves. T-Systems ICSS provides iBasis seamless global reach via the T-Systems Telekom Global Net , with more than 1.5 million kilometers of optical fiber and state-of-the-art technology.

T-Systems joins the more than 160 carriers worldwide who have formed partnerships with iBasis. By providing Tier One quality international service to these carriers, iBasis has become one of the world's 10 largest carriers of international traffic¹ and was recently ranked by global service providers as the world's #1 international wholesale carrier².

"T-Systems and iBasis share a similar vision of harnessing technological innovations to deliver high-quality communications solutions, responding to current and future carriers' needs," said Detlev Diessner, Senior Executive Vice President of International Carrier Sales and Services. "The relationship is mutually beneficial: in addition to providing high quality international call completion services for T-Systems, iBasis is able to take advantage of the extensive T-Systems network for call completion."

"VoIP is becoming a much larger factor in worldwide telecommunications as large carriers increasingly embrace the efficiencies of the Internet for telephony. As a result, our base of Tier One customers continues to grow rapidly," said Ofer Gneezy, president and CEO of iBasis. "As a division of Deutsche Telekom, T-Systems is part of one of the largest carriers in the world, and we're pleased to be both a provider and a customer."

About T-Systems International Carrier Sales & Services

Deutsche Telekom is Europe's largest telecommunications company and one of the leading carriers worldwide - with operations in Europe, the Middle East and Asia, as well as both North and South America. Using the global network platform, T-Systems International Carrier Sales & Services offers innovative customized products and services for network providers and carriers, who are looked after locally via a worldwide sales network. The basis for the comprehensive product portfolio (Voice, Bandwidth, IP) is an ultramodern infrastructure - the Telekom Global Net- which is currently present in 16 countries with 22 PoPs. More will follow. For further information, see
www.t-systems.com/icss.

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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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.