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Telefonica Ecuador Interconnects To iBasis For Termination of International Calls

Ecuador's Leading Mobile Operator Provides Reliable, High Quality Route and Positions iBasis to Gain Market Share in Traffic to Fast-Growing Destination

BURLINGTON, MASS. - August 27, 2007 -iBasis, Inc. (NASDAQ: IBAS), the global VoIP company, today announced Telefónica Ecuador (a part of the Telefónica S.A Group) has connected to The iBasis Network™ for termination of mobile international calling. The iBasis Network is the most extensive international Voice over Internet Protocol (VoIP) platform in existence. With 2.5 million customers, Telefónica Ecuador is one of the leading mobile telecommunications providers in the country, offering service that covers nearly 90 percent of the entire population.

The interconnection will enable iBasis to provide its wholesale and retail customers with reliable, high quality termination to Telefónica Ecuador's growing mobile phone network while providing a new revenue stream for Telefónica Ecuador. In addition to being one of the world's leading wholesale carriers of international long distance telephone calls, iBasis also provides retail prepaid calling services and disposable cards, including the Pingo® web-based offering (www.pingo.com). As a result, consumers worldwide can also now directly take advantage of iBasis enhanced capacity and quality on calls to Ecuador.

"Ecuador is one of the fastest-growing telecommunications markets in the world, with approximately one billion minutes of calls from the United States each year," said Ofer Gneezy, president and CEO of iBasis. "By interconnecting with Telefónica Ecuador we are greatly expanding our capacity to carry those calls to Ecuador, and enhancing our ability to deliver the best value to our retail calling card and Pingo customers."

Pingo (www.pingo.com) offers high-quality long distance calling service on a prepaid basis, enabling consumers to realize the cost-savings of VoIP from regular fixed or mobile phones without additional hardware or software. Mobile phone users in particular can save as much as 90 percent on international calls to Ecuador and the rest of the world by using Pingo's toll-free and local access numbers to take advantage of Pingo's lower rates. Pingo minutes can be purchased online using PayPal and credit and debit cards.

The Andean region, which includes Ecuador, Bolivia, Peru, Colombia and Venezuela, accounts for 22.6 percent of total mobile subscribers in Latin America and the Spanish-speaking Caribbean, according to a market researcher Signals Telecom Consulting. The mobile telephony market in Latin America's Andean region is expected to grow to 82.3 million users by the end of 2007, from 60.4 million users in June 2006. Interconnections with major providers of mobile service in the region, such as Telefónica Ecuador, helps iBasis capture a larger share of international calls destined for mobile phones in the region.

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 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(1). 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 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; (v) 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 (vi) 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.