iBasis Posts Record VoIP Call Volume During New Year's Day

Increasing VoIP Interconnections Enhances Efficiency for iBasis and its Customers

BURLINGTON, Mass., Jan. 07, 2003 -- iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice communications, today announced that the company carried a record volume of approximately 19 million minutes of international VoIP phone calls on New Year's Day. This represents a 32% increase over the traffic from New Year's Day 2003.

"In addition to setting an overall record for traffic, we are experiencing a record volume of traffic that enters or exits the iBasis Network as IP traffic," said Ofer Gneezy, president and CEO of iBasis. "Major carriers have been deploying VoIP infrastructure to support both retail services and direct VoIP carrier interconnects. At the same time, new service providers are delivering VoIP services directly to residential and business consumers. Both can realize significant cost efficiencies by establishing direct VoIP interconnections with our proven global VoIP infrastructure.

"More than 70% of iBasis traffic either originates or terminates through our direct VoIP interconnects with service providers. Direct VoIP interconnects require significantly less capital expense in the iBasis network than legacy TDM interconnects. In addition, we are enabling our customers to more fully benefit from the efficiencies of VoIP and the public Internet for global telecommunications."

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.

The New England Technology Fast 50 program is presented by Deloitte & Touche and Hale and Dorr, in association with the sponsor, Mazonson Inc. In addition, Mass High Tech and Trinity Communications are associated with the program.