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Internet Telephony Network to Speed Delivery of Speech-Enabled Web Services Worldwide

Carriers Making the Move to iBasis Quality As Company Sees Significant Increase in Traffic From World’s Largest Carriers During 2000

BURLINGTON, MA - January 22, 2001 - iBasis, Inc., (Nasdaq: IBAS), the leader in advanced voice-based Internet communications, today announced that its global VoIP network now carries traffic equivalent to 10% - 35% of all US-outbound voice and fax traffic to 14 countries, including China and three others that are among the world’s ten most populous countries.
This remarkable industry result was achieved through the company’s increasing ability to attract large volumes of traffic from the world’s largest carriers. Traffic from these carriers, (known in the industry as Tier 1,) routed over The iBasis Network increased significantly during 2000 and as of Q4 of this year accounted for over 30% of all traffic on the company’s global VoIP network. Now, iBasis is leveraging this high quality global voice platform to create the Global Spoken Web, a network of speech-enabled business services that will be available from any mobile or fixed phone in the world.

"Our extraordinary traffic growth to these destinations demonstrates that iBasis is building critical mass and gaining market share on routes to many of the 45 countries served by our global network. As importantly, our increase in Tier 1 traffic speaks volumes about the confidence that the world’s largest carriers have in our quality. iBasis has now proven what many never believed possible - that our unique approach to monitoring and managing the voice traffic we route over the Internet can provide service quality indistinguishable from that of traditional phone networks." said Ofer Gneezy, president and CEO of iBasis. "Just as Southwest Airlines grew initially by economically flying passengers to secondary destinations, much of our remarkable growth has come by complementing the routing strengths of the world’s largest carriers by transporting voice and fax traffic more efficiently to underserved calling destinations. We are also experiencing strong growth in the traffic we carry on some of the world’s largest volume routes, despite the relatively lower rate of VoIP penetration to these destinations. Moving forward, we are building on this success by rolling-out new, higher-margin voice services that only VoIP networks can support. These new services will leverage our existing infrastructure to provide access to a Global Spoken Web that will transform every phone into a speech-driven Internet device and every Web service into a conversation."

In support of iBasis’ initiative to provide access to a Global Spoken Web, the company recently announced an agreement to acquire PriceInteractive, a leading Speech ASP whose customers include AT&T, ExxonMobil, Gannett, H&R Block, Home Shopping Network, Morgan Stanley, Sabre Group, WorldCom, Sprint, Verizon, and Western Union.(See iBasis To Acquire Leading Enhanced Services Provider PriceInteractive; Adds Company’s Fortune 500 Customers to Growing Revenue Stream- - December 13, 2000). iBasis had also previously announced an initiative to leverage its global infrastructure for the delivery of speech-enabled solutions using technologies from leading speech recognition providers such as SpeechWorks International (see iBasis and SpeechWorks International Announce Plans To Provide Global Phone Access For Speech-Driven Web Services and Content - - December 4, 2000.)

The iBasis Network: A Global Infrastructure for New, Enhanced Services

The iBasis Network is a robust, global platform for the delivery of IP-based communications services, including wholesale, phone-to-phone VoIP and enhanced services, such as unified communications and speech-enabled business solutions. The iBasis Network delivers IP-based voice services using Internet Telephony equipment from Cisco Systems deployed in large, carrier-class switching and application hosting facilities called Internet Central OfficesTM, strategically located in Amsterdam, Cambridge (Mass.), Frankfurt, Hong Kong, London, Los Angeles, Miami, New York, Paris, Singapore, Stockholm, Sydney, Tokyo, and Toronto. The network also comprises numerous smaller points of presence called Internet Branch OfficesTM, which play an important role in connecting providers to iBasis services. With this global infrastructure in more than 45 countries and through its peering relationships with other communications providers, iBasis can provide IP-based voice services virtually anywhere in the world.

About iBasis

Founded in 1996, iBasis (Nasdaq: IBAS) is the leader in advanced Internet-based communications. iBasis delivers toll quality voice and fax, as well as other advanced hosted communications solutions to service providers and enterprises. More than 100 international service providers, including 11 of the top 12 US-based international carriers and four of the five largest carriers in China, route traffic over the iBasis Network. iBasis customers include Worldcom, Cable & Wireless, NTT, Concert, China Unicom, China Mobile and Telstra. iBasis offers hosted, enhanced service solutions, including VoCoreSM Unified Communications and the IP CallCard pre- and post-paid calling card platform. In addition, the company is leveraging its global network and VoIP expertise to develop and deliver speech-driven web-based content, e-commerce and customer service applications. The iBasis Network is the world's largest international Cisco Powered Network for Internet Telephony and the first to receive the Unified Communications-Cisco Powered Network (UC-CPN) designation. iBasis is listed in both the Russell 2000® and Russell 3000® Indexes. The company can be reached at its worldwide headquarters in Burlington, Mass., USA at 781-505-7500 or on the Internet at http://www.ibasis.net


Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release, including those relating to the company's current expectations regarding revenue growth, sources of revenue, margin improvement and future capital expenditures 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 the company's new voice-based Internet services and the timing and amount of revenue generated by these services; (ii) fluctuations in the market for and pricing of VoIP services; and (iii) the other considerations described as "Risk Factors" in iBasis' Preliminary Prospectus dated January 16, 2001, and the company's other SEC filings.


Assured Quality Routing and AQR are registered trademarks, VoCore is a service mark and iBasis, The iBasis Network, Internet Central Office and Internet Branch Office and IP CallCard are trademarks of iBasis, Inc. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems, Inc. All other trademarks are the property of their respective owners.


Contacts: Media (US):

Adam Banker

iBasis, Inc.

781-505-7414

abanker@ibasis.net


Europe:

Matthew Tucker

Landmark Consultants

+44 20 7861 3027

mtucker@landmarkconsultants.com


Investors:

John Quirk

iBasis, Inc.

781-505-7409

jquirk@ibasis.net

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