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iBasis and Solegy Connect to Enhance Service for EarthLink MindSpring PC-to-Phone Callers

Support for Popular Low Bit-Rate Codec Improves Speech Quality for Users

BURLINGTON, MA - DATE - iBasis, Inc. (NASDAQ: IBAS), the global VoIP company™, and Solegy™, a provider of a managed service delivery platform for VoIP, IMS and other next generation services, today announced at VON Spring 2007 that they have interconnected to deliver high quality public switched telephone network (PSTN) termination to users of the EarthLink® MindSpringSM PC-to-Phone calling service. The combination of capabilities from iBasis and Solegy enables the Earthlink service to utilize the iLBC codec, a narrowband speech algorithm designed to optimize calls made over the Internet.

Solegy, Earthlink's managed platform provider, has incorporated the iLBC codec, ensuring quality of service (QoS) for MindSpring callers. The iLBC codec performs better than commercially available alternatives in situations where the caller's Internet link may suffer from lost or delayed IP packets. iBasis is the only major wholesale carrier with the technological capabilities to support iLBC and provide interconnection to Solegy.

"Not wanting to sacrifice optimized calling for MindSpring's users, we were determined to find a wholesale carrier who could interoperate with us on this iLBC codec," said Eric Hernaez, CEO and co-founder of Solegy. "Naturally, we were delighted to learn iBasis could support this option. We believe both EarthLink and its many MindSpring customers will recognize and appreciate the improved quality provided through the iLBC technology, and we look forward to working with iBasis to deliver this high service level."

"We're committed to selecting best-of-breed partners who maintain EarthLink's standards for quality," said Craig Forman, president of Access and Audience at EarthLink. "By working with Solegy and iBasis, we can continue providing consistent, premium service to our softphone users."

"The consumer VoIP market is growing rapidly, and emerging providers all over the world need access to high quality termination to fixed-line PSTN and mobile phones," said Ofer Gneezy, president and CEO of iBasis. "With the iBasis DirectVoIP Broadband™ service, consumer VoIP providers like Earthlink can take full advantage of the most advanced codecs, including iLBC, to deliver high quality service for a wide variety of devices and applications."

Solegy's ServicePDQ™ platform, which EarthLink utilizes for the MindSpring dial-out service, takes full advantage of iBasis' global VoIP network to provide high-quality PC-to-phone calling at reduced rates. Enabled by the ServicePDQ platform, MindSpring users can access a Web portal offering convenient, single-click self-provisioning, as well as customer self-service. In addition, ServicePDQ's SIP softswitch architecture supports real-time billing for MindSpring-originated calls to traditional PSTN phone lines.

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, Telefonica, and Yahoo. iBasis carried more than 11 billion minutes of international voice over IP (VoIP) traffic in 2006, and is one of the largest carriers of international voice traffic in the world. 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.

About Solegy™

Solegy™ provides a managed service delivery platform for VoIP, IMS and other next generation services to quickly and easily manage and deploy new applications and back-office services. Through Solegy, service providers can launch new services through a wider variety of applications with minimal cost. Solegy also acts as a reseller for third-party application development regardless of platform or broadband connection. These service solutions are developed for use with IP and IMS-based networks and applications. Solegy pre-built applications include SOHO Broadband, Voice VPN, Wholesale Peering, Calling cards and Callback. Built on the Solegy ServicePDQ platform, all Solegy solutions provide a real time, operator-grade session management and back-office environment. Solegy is based in New York City, with offices in San Jose, Toronto and Manila. For more information please visit www.solegy.com.



1Telegeography 2007 data compared with iBasis 2006 traffic volume

iBasis and Pingo are registered marks of iBasis, Inc. The global VoIP company is a trademark of iBasis, Inc. Solegy, the Solegy logo, OpenSourceSIP, OpenSIPStack and ServicePDQ are trademarks of Solegy LLC. 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 iBasis' 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 iBasis' 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 iBasis' most recent Forms 10-K and 10-Q, and the company's other SEC filings. iBasis has no current intention to update any forward-looking statements.