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Voiceserve Selects iBasis to Provide International Service for Residential VoIP Customers

DirectVoIP Broadband Enables Emerging UK-based Consumer VoIP Provider to Expand its International Footprint Cost-effectively

FALL 2005 VON CONFERENCE, Boston, MA— September 19, 2005 — iBasis, Inc., a leader in international long distance, VoIP, and prepaid calling cards, today announced that Voiceserve, an emerging UK-based VoIP provider, has selected iBasis to deliver international calling services to its residential subscribers.

Using iBasis' DirectVoIP™ Broadband service, Voiceserve quickly established a direct IP interconnection with the iBasis global VoIP network that enables it to add competitive international calling to its softphone offering without the large capital expense associated with fixed TDM circuits, local loops, digital cross-connect switches and gateway ports in global interconnect facilities and data centers.

"We chose to partner with iBasis because the company provides a highly reliable VoIP infrastructure to deliver international call termination, and its DirectVoIP Broadband service gives us a fully-managed solution that reduced our time to market," said Michael Bibelman CEO of Voiceserve. "As a result, we are able to offer competitive global calling plans to our subscribers very quickly and with almost no additional capital investment."

"The high quality offered by iBasis enables Voiceserve to deliver VoIP services to businesses that are accustomed to high quality ISDN lines," added Alexander Ellinson, President of Voiceserve. "With our infrastructure, clients can have an extra phone line, with a U.K. or U.S. phone number, without the monthly costs normally associated with a second line. They can speak to fellow Voiceserve members for absolutely free, through the public internet, with advanced features, including conference calling."

"iBasis is a leading enabler of consumer VoIP services. As more and more international traffic migrates to innovative retail carriers, emerging VoIP providers like Voiceserve are recognizing that they can benefit from iBasis' global footprint and leverage the lower cost infrastructure of VoIP, while maintaining their focus on increasing market share and revenue per user," said Ofer Gneezy, President and CEO of iBasis. "At the same time, our regionalized architecture enables us to accommodate rising VoIP call traffic on a global basis without costly buildouts."

According to IDC, there will be 22 million Voice-over-Broadband users in Western Europe in 2008, which will translate into $7 billion in revenues for service providers. Analysys, a UK-based market research and consulting company, estimates that a quarter of Western European households will have abandoned "plain old telephone service" (POTS) by 2010.

iBasis DirectVoIP Broadband services are based on tested, reliable technology that is already being used by more than 15 voice-over-broadband and retail VoIP providers. The DirectVoIP™ Broadband addresses specific security, transcoding, and protocol support requirements to enable voice over broadband providers to offer their subscribers competitive international calling to fixed and mobile phone networks.

About Voiceserve

UK-based Voiceserve, Ltd. is an advanced implementer and integrator of telecom solutions for companies, call centers, carriers and service providers. Voiceserve has created and integrated an all-VOIP solution revolving around global communications and Data Voice Convergence. Companies and residential clients alike use VoIP applications like web-based live billing, 1 port gateways, USBPhone and Web2Phone, providing real-time human interaction and information delivery over the Internet. Through Voiceserve's products, businesses can offer quality voice services to anywhere in the world at rates that are significantly lower than current long distance charges. Voiceserve integrates software to run VoIP networks, and sells, installs and services its own branded VoIP gateways. Voiceserve's network consists of the latest technology, including C7 (SS7) switches and SIP and H.323 protocol platforms.

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 four 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 2005 data compared with iBasis 2004 traffic volume.

2 ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, 2004, & 2005.

Assured Quality Routing and iBasis are registered marks, Pingo, DirectVoIP, and The iBasis Network are trademarks of iBasis, 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.