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SOFTBANK Selects iBasis to Support Fast Growing Yahoo! BB International Voice Service

iBasis Global VoIP Network Enables Calls from 4.5 Million Voice over Broadband Users in Japan to Fixed and Mobile Phones Worldwide

Burlington — July 11, 2005 — iBasis, Inc., a leader in international long distance, VoIP, and prepaid calling cards, today announced that SOFTBANK BB, the largest operating company in the SOFTBANK Group, has connected with iBasis to enable subscribers to its Yahoo! BB voice service to call fixed and mobile phones around the world at very competitive rates. A pioneer in broadband provisioning and VoBB, SOFTBANK BB has been very successful in attracting voice over broadband subscribers. More than 4.5 million customers used its BB Phone voice service as of April 2005. SOFTBANK BB is leveraging iBasis' global VoIP network to expand its consumer service portfolio with very compelling international voice services that enable BB phone users to call PSTN and mobile phones directly at very competitive rates. Voice services like BB Phone have become an integral part of SOFTBANK's broadband offering to attract new customers, reduce customer churn, and increase average revenue per user (ARPU).

iBasis' patent-pending quality monitoring and management technologies enable SOFTBANK BB to complete international voice calls with quality comparable to that of traditional circuit-switched networks. The iBasis Network is optimized to enable providers of consumer VoIP services like Yahoo! BB to deliver high quality voice services. Using iBasis Assured Quality Routing® and PathEngine™ technology, voice traffic is monitored dynamically, and optimal routes are selected automatically according to real time performance data.

SOFTBANK BB also benefits from iBasis' PremiumCertified™ international routing product, which is specially designed for retail traffic and features more than 700 destinations that iBasis has certified as meeting high standards for quality and stability. The extensive global footprint, the high call quality, and sophisticated back-office systems of the iBasis network are a strong asset that enables SOFTBANK to focus on growing their BB Phone customer base and continuously innovating with creative pricing and promotional calling plans.

"We are very excited to be providing international calling services to SOFTBANK BB, a trailblazer in the communications industry and a leader in the fast-growing consumer VoIP market," said Ofer Gneezy, president and CEO of iBasis. "SOFTBANK and iBasis share the same vision in the new communications era, and a strong commitment to innovation and quality. We look forward to a long and mutually beneficial relationship."

About SOFTBANK BB

SOFTBANK BB is the largest operating company in the SOFTBANK Group. The company provides broadband infrastructure and services centering on its Yahoo! BB brand, as well as technical development, marketing, sales and support. SOFTBANK BB offers IT-related distribution and services and supervises and administers affiliated broadband and e-commerce companies. For more information about SOFTBANK BB Corp. visit www.softbankbb.co.jp/.

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.