iBasis Interconnects with Vebtel, Leading IP Telephony Service Provider in India

BURLINGTON, MASS. - October 06, 2003 - iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice communications, today announced that Vebtel, a leading IP Telephone company and provider of PC-to-Phone voice services in India, has selected iBasis to provide international long distance service for its business and residential customers.

Vebtel joins the more than 180 carriers worldwide who have interconnected 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 traffic and was recently ranked by global service providers as the world's best international wholesale carrier . "IP and the Internet offer tremendous benefits in both economics and in speed of deployment, which are particularly valuable in a large country like India with a huge population that is distributed all over the country," said Ofer Gneezy, president and CEO of iBasis. "With its innovation and energy, Vebtel is enabling business enterprises and consumers to take advantage of VoIP and thereby stimulating the expansion and enhancement of communications within India and among its international trading partners."

"Our expertise in providing enterprise solutions, the promise of VoIP, and the proven quality of the international service iBasis provides will bring great value to both enterprise and residential consumers in India," said Kusumba S., President and Managing director of Vebtel.

Voice over IP (VoIP) was legalized in India in April 2002 as the country officially deregulated its international long distance market. By the end of 2002, VoIP traffic accounted for approximately 6% of India's international long distance traffic (inbound and outbound). Industry analyst firm iLocus forecasts that more than 60% of India's international long distance traffic, or 7.1 billion minutes, will be carried over VoIP networks by the year 2007 .

"With this Vebtel relationship, iBasis is now dealing with the Indian market on all available fronts," said Jahangir Raina of iLocus. "The company already has wholesale relationships with the carriers in India for both outgoing and incoming traffic. iBasis handles 10 to 20 percent of the international voice traffic from the US and the UK to countries such as Russia and China, and we expect them to achieve the same in case of India. In addition, the relationships iBasis has established with carriers in India has positioned the company to reach double digit share in India's outgoing international traffic as well."

About Vebtel

Vebtel (VOIP Pvt. Ltd.) is based in Hyderabad, India and is at the forefront of the development of IT convergence infrastructure. Vebtel provides next generation enterprise network solutions to blue chip customers in the region using IP technology. The company's mission statement is simple: "We connect people to information." Vebtel has over a decade of experience and offers a wide range of IP telephony products and solutions. Vebtel's network operations are global, and include a principal termination center and world-class network operations center in New York City. Vebtel is committed to providing state-of-the-art technology and solutions to its customers. Vebtel is set to establish an Internet-based "Global Telco" to offer a variety of telecom services on a virtual basis to customers globally. Vebtel has built its in-house devloped CRM / ERP for Billing and Customer Support functions which allows the business to dynamically populate across the World. Vebtel is also designing IP PBX in-house and will release the same into the International market very soon.

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading provider of wholesale international telecommunications services. For the past two years the company has been named by service providers as the best international wholesale carrier in Atlantic-ACM's annual International Wholesale Carrier Report Card¹. iBasis is a preferred provider for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. iBasis has carried more than six billion minutes of international voice traffic over its global Cisco Powered Network™, and is one of the ten largest carriers of international voice traffic in the world². In addition to its wholesale international telecommunications services, iBasis provides retail prepaid calling cards to major distributors, utilizing the international iBasis Network. Based on its revenue growth from 1997 through 2001, iBasis was ranked 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.