iBasis Shareholders Authorize Board of Directors to Consider Reverse Split

Potential Reverse Stock Split Viewed as Possible Step Towards NASDAQ Relisting

BURLINGTON, Mass., Feb. 04, 2004 -- iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice communications, today announced that its shareholders have voted to give the iBasis board of directors authority to effect a reverse split of the Company's common stock.

The affirmative vote by shareholders permits the iBasis board of directors to choose to effect a reverse stock split of the Company's common stock at a ratio of between one-and-a-half for one (1.5:1) and five for one (5:1). Alternatively, the board may choose not to effect such a split. On a pre-split basis, iBasis currently has 44.8 million common shares outstanding.

In a presentation made after the conclusion of the formal business of the meeting Mr. Gneezy highlighted the company's recent results, the growth drivers for wholesale telecommunications and iBasis in particular, the strategic benefits of VoIP, and the advantages that iBasis enjoys in the wholesale international telecommunications market as well as in the retail prepaid calling card market, which the company recently entered. The presentation is posted in the investor relations section of the iBasis web site (www.ibasis.com).

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.