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Pingo Lowers the Cost of Calls to Mobile Phones in More Than 100 International Destinations

With RateWatcher™, Pingo Customers Save on International Calls to More Than 600 Million Mobile Phone Users

Burlington — June 23, 2005 — Pingo™, the prepaid calling card service of iBasis (OTCBB: IBAS), today announced lower rates on calls to mobile phones in more than 100 countries, accounting for more than 600 million overseas mobile phone subscribers. The reductions are the result of RateWatcher™, a feature of Pingo that actively searches for opportunities to reduce rates and pass the savings along to Pingo phone card subscribers. Pingo takes advantage of the iBasis global VoIP network to enable consumers to purchase directly the same high quality long distance calling service the company provides on a wholesale basis to its large carrier customers. The RateWatcher feature strengthens Pingo's position as "the last calling card you'll ever need™".

With RateWatcher, Pingo calling card customers benefit from the worldwide buying power of iBasis, one of the ten largest carriers of international phone calls in the world. By actively monitoring changing long distance costs around the world, RateWatcher finds opportunities to lower Pingo's costs, provide low international calling rates, and save Pingo subscribers from the chore of having to compare rates from a multitude of prepaid calling card offerings. RateWatcher reinforces Pingo's competitive position and broadens its customer base by reducing the costs of calls to many of the most popular international calling destinations from the U.S.

"In spite of the tremendous growth in mobile phone adoption worldwide, calls to international mobile phones continue to be about the most expensive calls you can make," said Ed Weisberg, vice president of eCommerce and Pingo at iBasis. "As one of the world's largest carriers of international traffic, iBasis is able to carry a large volume of calls to almost one billion mobile phones around the world. As a result of this market position, we're able to generate savings for our Pingo customers that users of other services can only dream about."

RateWatcher Reduces Pingo Rates to Mobile Phones

Effective immediately, Pingo has reduced its rates on calls to mobile phones in more than 100 countries including the United Kingdom, France, Spain, and Russia, Argentina, Brazil, Guatemala, and Haiti, Japan, Vietnam, Pakistan, and Taiwan. A complete listing of Pingo rates is available at www.pingo.com/rates.do.

Rates on other routes around the world continue to be adjusted on an ongoing basis as RateWatcher reveals opportunities to pass more cost savings on to Pingo customers.

About Pingo

Pingo offers consumers high quality international calling services on a prepaid basis. Pingo customers save on calls to and from both landline and mobile phones. Mobile phone users in particular can save as much as 90% on international calls by using Pingo's toll-free access and lower rates on international calls. Minutes can be purchased using credit cards and debit cards at www.pingo.com. New customers begin saving immediately with a sign-up bonus of $5 worth of free calling and can receive additional $5 credits by successfully referring their friends to the Pingo service. Pingo leverages the iBasis global VoIP network, which includes direct connections to more than 100 countries worldwide and interconnections with more than 280 carrier customers.

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services, including the Pingo™ web-based offering (www.pingo.com) and disposable calling cards, which are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Skype, and Telefonica. iBasis carried approximately 5 billion minutes of international voice over IP (VoIP) traffic in 2004, and is one of the ten largest carriers of international voice traffic in the world1. For three consecutive years service providers named iBasis the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card2. iBasis was also ranked among the fastest-growing technology companies in New England in the 2002, 2003, and 2004 Technology Fast 50 programs 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.

   
 
 
     

 

 


1 Telegeography 2003 data compared with iBasis annualized Q1 2004 traffic volume.

2 ATLANTIC-ACM International Wholesale Carrier Report Card—2002, 2003, & 2004.

Assured Quality Routing and iBasis are registered marks, DirectVoIP and The iBasis Network are trademarks of iBasis, Inc. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems, Inc. All other trademarks are the property of their respective owners.

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, profitability, future capital expenditures, and cash flows 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 and margin generated by these services; (ii) fluctuations in the market for and pricing of these services; and (iii) the other considerations described as "Risk Factors" in the Company's 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.

Use of Non-GAAP Financial Data
The Company provides certain financial data in addition to providing financial results in accordance with GAAP. This data is not in accordance with, or an alternative to GAAP, and may be different from Non-GAAP financial data used by other companies. This Non-GAAP financial data includes average revenue per minute, which the Company believes provides useful information, to both its management and investors about the Company's current performance.