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iBasis DirectSIP™ Enables VoBB Providers To Bring New Applications and Services To Global Market With Unmatched Scalability, Quality and Speed

Portfolio of Wholesale VoIP Services Helps Providers Capitalize On Rapid Growth Market Projected To Reach $150 Billion in Annual Revenue By 2012

BURLINGTON, MASS. - October 30, 2007 - Today at Fall VON 2007, iBasis (NASDAQ: IBAS), the global VoIP company™, announced DirectSIP™, an advanced portfolio of wholesale VoIP services that help voice over broadband (VoBB) providers bring session initiation protocol (SIP) voice applications and services to market quickly, cost-effectively and with unsurpassed quality, scale and global reach over The iBasis Network™.

DirectSIP allows enhanced service providers to capitalize on the rapidly developing and lucrative market for SIP-based applications and services such as click-to-call and Web-activated telephony. According to ABI Research, by 2012 almost half of all telecom consumers will use at least one SIP-based service, with most subscribing to multiple forms of messaging and video sharing, a trend that will be driven by interest in user-generated content. ABI projects these SIP-based services will generate more than $150 billion in revenue annually.

"Demand for SIP products is on a steady and rising trajectory, presenting VoBB providers with tremendous opportunity," said Joe McGarvey, senior analyst with Heavy Reading, an independent telecom market research firm. "With DirectSIP, iBasis is providing crucial building blocks and network infrastructure that will allow providers to rapidly bring their services to the global market, as well as position them for future growth. With its global VoIP network and existing VoBB customer base, iBasis is in a strong position to help providers achieve success in the SIP market segment."

The DirectSIP portfolio offers the following capabilities to facilitate rapid deployment of SIP services:

  • Highly-available, Secure SIP interconnections;
  • Wholesale Click-to-Call, including web and application-activated telephony;
  • Global multi-codec support via network-based media normalization;
  • Global voice termination over iBasis premium routes to fixed and wireless networks in more than 100 countries;
  • iBasis Engineering technical support with customer service integration to ensure SIP applications operate effectively over the iBasis Global Network
  • Available at no extra charge, iBasis DirectSIP appeals to innovative service providers like Tokiva, a mobile social communications provider whose services are designed to help mobile users stay connected with people and information that are important, useful, or interesting to them.

"Tokiva mobile voice service is high-quality yet very cost effective, which is made possible through the deep VoIP expertise and worldwide network coverage of iBasis," said Tong Li, founder and CEO of Tokiva. "We had previously tried to create this service through other means but were frustrated by the technical limitations of other carriers. With DirectSIP, the voice quality is superb, we can quickly scale to accommodate increased demand, and have the ability to rapidly respond to new developments in the marketplace and bring our customers the latest applications and services."

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.




1 Based on Telegeography 2007 and iBasis and KPN Global Carrier Services pro forma 2006 traffic.

iBasis is a registered mark, and the global VoIP company is a 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 constitute forward-looking statements under Section 21E of the Securities Exchange Act of 1934 and involve risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements describing the effects of the combination of iBasis and KPN in the industry, the expected geographic coverage of the combined business, the consolidating nature of the international voice market and iBasis' ability, after the closing of the transaction with KPN, to increase business activities and market presence, while lowering costs. Important factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to,(i) the ability of the Company and KPN to satisfy the closing conditions and consummate the proposed transaction and 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 KPN serve; (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; and (vi) the other factors described in the Company's most recent Annual Report on Form 10-K and other 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.