New Pingo Business™ Service Brings VoIP Savings to Small-to-Medium-Sized Businesses Without New Technology or Contract Risks

Pingo Business Allows SMBs to Provide Employees with Low-Cost International Calling on Their Existing Phones, Offers Easy-to-Use Tools for Controlling Costs

BURLINGTON, MASS. - October 10, 2007 - Pingo®, the online calling service from iBasis (NASDAQ: IBAS), today announced the launch of Pingo Business™ (www.pingobusiness.com), a powerful Voice over Internet Protocol (VoIP) telephony service that delivers the savings of VoIP without requiring specialized equipment, phones or software. Pingo Business provides small-to-medium size businesses (SMBs) reliable, low cost, easy-to-manage calling for up to 999 employees on an "on demand" basis, without long-term contracts. Using Pingo Business, SMB employees can use company-owned and their own fixed-line and mobile phones and achieve up to 90% cost savings on international calls. Administrators can set individual spending limits, easily monitor usage and manage account balances through a single, centralized account. SMBs can also choose the amount of funds they wish to place in their master account, with no additional commitment required.

The new Pingo Business service provides SMBs with a much-needed means to defray high telecommunications costs. According to research firm In-Stat, SMBs will spend $16.6 billion on wireline voice service in 2007, accounting for nearly 31 percent of the total U.S. business market for such services. Forrester Research also recently reported that SMBs are currently spending more than a quarter of their telecom budgets on mobile services. As a result, SMB interest in cost-saving VoIP services, such as Pingo Business, is growing rapidly. In-Stat also predicts that two-thirds of U.S. businesses will have some form of VoIP service by 2011.

"Just like large corporations, small and medium-sized businesses are doing more business with partners and customers in foreign countries. Increasingly, SMBs are eager to take advantage of the cost savings of VoIP solutions but are hesitant because of a reluctance to add new devices to their networks," said Ofer Gneezy, president and CEO of iBasis. "Pingo Business delivers the savings and control without the risk; there's no investment in unfamiliar equipment or need to lock into a contract. Plus, Pingo Business is offered by iBasis, one of the largest carriers of international phone calls in the world, a public company with a long and proven track record of providing quality service."

Additional features and benefits Pingo Business provides to SMBs and their employees include:

• Scalability & Flexibility: Once a Pingo Business master account is active, up to 999 separate sub accounts can be created. New users can be added or deleted in less then a minute, allowing companies to expand or decrease their usage as needed. Employers can automatically recharge accounts, enabling SMBs to provide calling on a temporary or more permanent basis.
• Cost Control: A fund limit can be set on individual calling accounts allowing those responsible for budgets to control exactly what is spent on calling. When an account is closed, remaining funds are not lost, instead, they are automatically transferred into the SMB's master account.
• Easy Calling: After creating a sub account, a code is provided to the employee, allowing them to begin calling through a local Pingo Business access number. Through the PINPassâ„¢ feature, employees can bypass the usual PIN-entry process for fast, easy calling.

"Having a reliable, low-cost international calling service that is easy to centrally manage is critical to our business," said David Crow, Co-founder and Managing Director of Intelemark (www.intelemark.com), a professional lead generation and appointment-setting firm with offices throughout the U.S. "We depend on this service to cost-effectively conduct overseas lead-generation campaigns for major corporations; if my agents can't make their calls, they can't do their jobs. Pingo Business also allows us to provide calling on an on-demand basis and easily manage and control our international calling expenses. It has been an integral component of our ongoing overseas calling campaigns, enabling us to quickly scale to meet our clients' dynamic needs."

"Our volunteer programs operate year-round across the globe, and the telephone remains an indispensable tool for communication," said Volodymyr Zharyy, IT Director at Cross-Cultural Solutions (www.crossculturalsolutions.org), a nonprofit organization operating international volunteer programs with over 4,000 volunteers and a worldwide staff of over 300 people in 12 countries. "We place a great deal of calls to remote areas in countries such as Africa and have found that Pingo Business consistently delivers the best rates and quality of service. Using Pingo for international calling works better than land lines do for our organization. Plus, it didn't require the purchase of any additional equipment, which made the rollout easier for our global users."

Pingo Business is uniquely qualified to offer competitive rates. As one of the world's largest carriers of international calls and operator of one of the most extensive global VoIP networks in the world, iBasis can leverage substantial economies of scale and pass the benefits along to its customers. In addition to Pingo users, iBasis customers include some of the largest telecommunications carriers and service providers in the world. The company is also a provider of retail prepaid calling services, as well as disposable calling cards sold through major distributors and available at retail stores throughout the U.S.

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 and enhanced services for mobile operators. iBasis customers include KPN, KPN Mobile, E-plus, BASE, and many other large telecommunications carriers such as AT&T, Verizon, Vodafone, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia, Telefonica, and Yahoo. In October 2007, iBasis acquired KPN Global Carrier Services to create one of the three largest carriers of international voice traffic in the world, and KPN became a majority stockholder of iBasis. On a pro forma basis, the combined company carried more than 20 billion minutes of international voice over IP (VoIP) traffic in 2006. The Company can be reached at its worldwide headquarters in Burlington, Mass., USA at +1 781-505-7500 or on the Internet at www.ibasis.com.