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iBasis Provides International VoIP for Telefonica Deutschland GmbH

iBasis, Inc. (OTCBB: IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced that Telefonica Deutschland GmbH, one of the largest independent IP carriers in Germany, has interconnected with iBasis to deliver comprehensive VoIP services to Internet service providers, other carriers and corporate customers.

Using iBasis' DirectVoIP(TM) Broadband service, Telefonica has quickly established a direct IP interconnection with the iBasis global VoIP network in Germany which enables it to add competitive international calling to its IP Telephony offering without the large capital expense associated with fixed TDM circuits, local loops, digital cross-connect switches and gateway ports in global interconnect facilities and data centers.

"We required a highly reliable Voice over Internet Protocol provider to deliver international call termination and expand the global services we provide to Internet service providers, and our carrier and corporate customers," said Susana Calvo Redondo, Manager Carrier Wholesale of Telefonica in Germany. "We selected iBasis for its proven track record in providing secure IP interconnections and reliable quality, which are critical to our customer base. As a result, we are able to very quickly expand our international offering with almost no additional capital investment."

"There is growing demand from business customers around the world for converged voice and IP services, and leading innovative carriers like Telefonica are seizing the opportunity to grow their business efficiently by working with proven VoIP providers like iBasis," said Ofer Gneezy, President and CEO of iBasis. "We are very pleased to partner with Telefonica in Germany, as they help to drive mainstream adoption of enterprise IP telephony solutions."

According to Ovum, a leading industry research and analysis firm, the market for enterprise IP telephony solutions such as those provided by Telefonica is moving into a new growth phase. The firm predicts that the market for network-based IP telephony solutions in Europe will be worth $1.4 billion by 2008.

Cost-Effective and Scalable Interconnects with DirectVoIP Broadband

iBasis DirectVoIP Broadband enables service providers to reduce the capital and operating costs required for international voice services. DirectVoIP Broadband interconnections allow cost-effective and scalable VoIP interconnects to carriers and providers, eliminating the need for increased capital expense associated with fixed TDM circuits, local loops, digital cross-connect switches and gateway ports in global interconnect facilities and data centers. DirectVoIP Broadband leverages iBasis' extensive VoIP interoperability capabilities in supporting a broad range of VoIP infrastructure equipment, including multi-vendor gateways, gatekeepers, proxy servers, session border controllers, softswitches, IP phones and PC-Phone applications that have been DirectVoIP Certified. DirectVoIP Broadband also provides enhanced call signaling control and conversion using standards-based protocols such as SIP and H.323 thus allowing a large array of IP phones and PC-Phone applications to operate effectively with the iBasis network.

About Telefonica Deutschland GmbH

Telefonica Deutschland GmbH, a leading IP carrier in Germany, concentrates exclusively on providing comprehensive IP services to business customers. Through its redundant backbone network of more than 440 points of presence in Germany and its connection with the worldwide network of Telefonica, its Spanish parent company, Telefonica Deutschland provides a portfolio of services including Virtual Private Networks (VPNs), integrated voice, video and data solutions, value-added services such as Voice of over IP, and outsourcing services including Hosting and Security solutions. Telefonica Deutschland's customers include more than 40 national carriers and 160 Internet Service Providers (ISPs), including AOL. The company also hosts data centers and corporate networks for major international corporations including Bertelsmann AG, Bank of China, Toyota, Adecco, BMG, Gruner+Jahr, Krombacher, Toto Lotto Lower Saxony, and Xerox.

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services, including the Pingo(TM) web-based offering (www.pingo.com) and disposable calling cards, which are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Skype, and Telefonica. iBasis carried approximately 5 billion minutes of international voice over IP (VoIP) traffic in 2004, and is one of the ten largest carriers of international voice traffic in the world(1). For four consecutive years service providers named iBasis the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card(2). iBasis was also ranked among the fastest-growing technology companies in New England in the 2002, 2003, and 2004 Technology Fast 50 programs sponsored by Deloitte & Touche. 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.

Assured Quality Routing and iBasis are registered marks, Pingo, DirectVoIP, and The iBasis Network are trademarks of iBasis, Inc. All other trademarks are the property of their respective owners.

(1)Telegeography 2005 data compared with iBasis 2004 traffic volume.
(2)ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, 2004, & 2005.

Contacts

iBasis, Inc.
Media:
Chris Ward, 781-505-7557
cward@ibasis.net
or
Investors:
Richard Tennant, 781-505-7409
ir@ibasis.net

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