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iBasis Expands Operations in India with Appointment of Regional Director

Global VoIP Leader Capitalizes on Growing Demand from Fixed and Mobile Carriers, VoIP Service Providers, and Call Center Operators

BURLINGTON, MA— Sep 25, 2006 — iBasis (NASDAQ: IBAS), the global VoIP company™, today announced the expansion of its operations in India with the naming of Vinayak Rajanahally as Regional Sales Director. Rajanahally is responsible for growing the company's wholesale international voice business, including International Long Distance (ILD) services for incumbent carriers, emerging providers of consumer VoIP services, and the fast-growing call center market in India.

"India is well positioned for leadership in the growing international telecommunications and VoIP market," said Dan Powdermaker, Senior Vice President of Worldwide Sales at iBasis. "By expanding our presence in this populous region, we are adding sales capabilities and operational support to respond to the increasing demand for rapid and cost-effective global interconnects. Our global VoIP network enables us to offer a very compelling solution for international termination."

According to an annual survey of the telecom industry conducted by Voice & Data, the international long distance (ILD) segment of Indian telecommunications increased dramatically - from 12% growth in 2004-05 to 90% growth in 2005-06. Based on Telegeography figures, 960 million minutes of outbound international calls were placed from India in 2004. Cellular services grew 57% from 2004 to 2005 and crossed the 100 million subscriber mark at the end of May 2006.

As regional sales director Rajanahally will be based in Bangalore and will lead all sales and business development functions in India. In addition to expanding iBasis' existing relationships, Rajanahally will also work to establish new strategic relationships with licensed telecommunications providers, including fixed and mobile carriers, call centers and call shop operators.

Rajanahally brings to iBasis significant telecommunications experience in the region. He previously held senior management positions with ComputerTel, Teleglobe, and ITXC (now part of VSNL). At ITXC, he was instrumental in establishing 10% share of all the India voice termination market within the first year of its operations.

Rajanahally will build on the relationships iBasis already has with Reliance Communications Limited, India's largest private information and communications services provider with a subscriber base of 23.7 millions (as per July data), and with Sify Limited, India's premier provider of Internet, network, and e-Commerce Services with the largest chain of Cyber cafes in India.

The iBasis Network™, the Company's global VoIP infrastructure, comprises more than 1,000 points of presence and offers international termination over its direct routes to more than 100 countries. The company can also help carriers in the region expand their revenues by terminating traffic from the iBasis Network. In 2005, iBasis carried approximately eight billion minutes of international phone calls over its network, a volume that places the company firmly among the world's largest carriers of international voice traffic.

About iBasis

Founded in 1996, iBasis (NASDAQ: 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 that are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers, including AT&T, Verizon, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia, and Telefonica. iBasis carried 7.8 billion minutes of international voice over IP (VoIP) traffic in 2005, and is one of the largest carriers of international voice traffic in the world1. For four consecutive years service providers have named iBasis the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card2. 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.

iBasis and Pingo are registered marks, and the global VoIP company and The iBasis Network are trademark of iBasis, Inc. All other trademarks are the property of their respective owners.

Except for historical information, all of the expectations, plans and assumptions contained in the foregoing press release, including those relating to the Company's anticipated revenue, earnings per share and capital expenditures, constitute forward-looking statements under Section 21E of the Securities Exchange Act of 1934 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 Company's ability to execute its business plan; (ii) the extent of adoption of the Company's services and the timing and amount of revenue and gross profit generated by these services; (iii) fluctuations in the market for and pricing of these services; (iv) the success of the Company's plans to contest the FCC ruling on prepaid calling cards; and (v) the other factors described in the Company's Quarterly Report on Form 10-Q for its most recently completed fiscal quarter and Annual Report on Form 10-K for its most recently completed fiscal year all of which are available at www.sec.gov. Such forward-looking statements are only as of the date they are made, and we have no current intention to update any forward-looking statements.