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iBasis Completes Restatement and Files Annual Report on Form 10-K

Records $10.1 Million Additional non-Cash Stock Based Compensation Expense

BURLINGTON, MASS. - June 12, 2007 - iBasis (NASDAQ: IBAS), the global VoIP company, announced that it has completed its previously announced financial restatement. Today, the Company filed its Annual Report on Form 10-K for the year ended December 31, 2006, restating its consolidated financial statements as of December 31, 2005 and for the years ended December 31, 2005 and 2004 and for the first two quarters of 2006. Today, the Company also filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006. The Company continues to expect to become current with its periodic reports during June with the filing of its Quarterly Report on Form 10-Q for the first quarter of 2007.

The Company recorded $10.1 million additional non-cash stock based compensation of which $9.1 million relates to three grants made during 2000, 2001 and 2003. The amount of the restatement is at the low end of the range previously estimated by the Company.

As previously announced, a Special Committee of independent directors appointed by the Board of Directors of the Company conducted an internal investigation relating to stock options granted to the employees of the Company, the timing of such grants and their related accounting and tax treatment. On October 20, 2006, the Company disclosed that the Special Committee had concluded that the appropriate measurement dates for determining the accounting treatment of certain stock option grants differ from the measurement dates used by the Company in preparing its financial statements.

As a result, the Company has determined revised measurement dates for certain stock option grants and recorded total additional stock-based compensation expense of $10.1 million for the years ended December 31, 2000 through 2005, and for the first two quarters of 2006. A summary of additional stock-based compensation expense, by period, with the most significant stock option grants shown separately, is as follows:

(000's) Year Ended December 31, Three Months Ended March 31, Six Months Ended June 30, Total
Grant Date 2000 2001 2002 2003 2004 2005 2006 2006
May 25, 2000 $1,540 $2,699 $3,028 $281 $135 $--- $--- $--- $7,683
Nov. 15, 2001 554 391 39 39 1,023
Aug. 11, 2003 47 185 162 20 40 434
All other grants 118 186 196 92 144 136 15 52 924
Total $1,658 $2,885 $3,778 $811 $503 $337 $35 $92 $10,064

As previously announced, the Company has received notice that it is not in compliance with Nasdaq listing requirements due to its failure to file its periodic reports. On March 12, 2007, the Company was informed by The Nasdaq Stock Market that the Nasdaq Listing and Hearing Review Council has stayed the April 26, 2007 deadline for the delisting of the Company's securities, pending further action by the Listing Council. The Listing Council further informed the Company that it may submit additional written information for the Listing Council's consideration by June 1, 2007. In its June 1 submission to the Listing Council, the Company requested additional time to complete its delinquent periodic filings.

The Company cannot predict when the Listing Council will complete its review or render a decision. There can be no assurance that the outcome of the Listing Council's review will be favorable to the Company, that the Listing Council will not lift the stay, or that the Company's securities will remain listed on The Nasdaq Stock Market.

"We are very pleased to have concluded the arduous process to determine the most appropriate measurement dates for our historical stock option grants and to complete the related restatement of our prior period financial statements," commented Ofer Gneezy, president and CEO of iBasis. "We look forward to completing the filing of our first quarter 10-Q during June and regaining compliance with the Nasdaq listing requirements. As we complete this process we are focused on finalizing the preparation of a preliminary proxy statement to seek shareholder approval of our previously announced transaction with Royal KPN N.V."

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 world1. 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 Based on Telegeography 2007 and iBasis actual 2006 traffic.

iBasis and Pingo are registered marks, The iBasis Network and the global VoIP company are trademarks 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 expectation that it will be able to complete the restatement of its prior period financial statements and to file its delinquent periodic reports during June 2007 and the Company's plan to make a submission to the Nasdaq Listing Council asking for additional time to file its periodic reports, 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 inability to meet the requirements of the NASDAQ Stock Market for continued listing of the Company's shares, (ii) the Company's ability to execute its business plan; (iii) the extent of adoption of the Company's services and the timing and amount of revenue and gross profit generated by these services; (iv) fluctuations in the market for and pricing of these services; (v) the success of the Company's plans to contest the FCC ruling on prepaid calling cards; (vi) the ability of the Company and Royal KPN to consummate the proposed transaction due to regulatory restrictions, the failure to receive shareholder approval, the ability to successfully integrate their operations and employees, the ability to realize anticipated synergies, the emergence of new competitive initiatives resulting from rapid technological advances or changes in pricing in the market, business conditions and volatility and uncertainty in the markets that the Company and Royal KPN serve; and (vii) the other factors described in the Company's periodic and current reports, 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.