iBasis Decides Against Reverse Stock Split

[August 09, 2004]

iBasis Decides Against Reverse Stock Split

BURLINGTON, Mass. --(Business Wire)-- Aug. 9, 2004 -- Following Successful Debt Refinancing And Strong Quarterly Results, Company Believes It Will Achieve Relisting On Major Exchange In Due Course

iBasis, Inc. (OTCBB: IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced that its Board of Directors has chosen not to effect a reverse stock split of the Company's common stock.

The Board received authorization to effect a reverse stock split during a special meeting of shareholders on February 18, 2004. The Company continues to believe that trading on a major national exchange rather than the OTC Bulletin Board would provide a broader market for the Company's common stock and facilitate the use of the Company's common stock in financing transactions. The Company believes it can accomplish this by focusing on continued execution of its business plan and growing investor confidence.

"Relisting on a major exchange remains an important goal," said Ofer Gneezy, president and CEO of iBasis. "We recently achieved our fourth consecutive quarter of growth and refinanced our debt, extending the maturity dates significantly and creating the very real potential to convert all of our debt to equity, which would eliminate the debt and interest payments entirely. We believe that we are on a path to achieve relisting in due course without having to execute a reverse split."

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail international prepaid calling cards sold through major distributors. iBasis customers include many of the largest telecommunications carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. The Company's prepaid calling cards are sold through retail stores in major metropolitan markets throughout the U.S. iBasis has carried more than nine billion minutes of international voice over IP (VoIP) traffic over its global Cisco Powered Network(TM), and is one of the ten largest carriers of international voice traffic in the world(1). For three consecutive years service providers have named the Company as the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card(2). iBasis was also ranked the #1 fastest-growing technology company in New England in the 2002 and 2003 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, ConnectPoint, and iBasis are registered marks, DirectVoIP, The iBasis Network, Internet Central Office, 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.

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, profitability, future capital expenditures, and cash flows 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 services and the timing and amount of revenue and margin generated by these services; (ii) fluctuations in the market for and pricing of these services; and (iii) the other considerations described as "Risk Factors" in the Company's most recent Forms 10-K and 10-Q, and the company's other SEC filings. We have no current intention to update any forward-looking statements.

(1) Telegeography 2004 data compared with iBasis annualized Q1 2004 traffic volume.

(2) ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, & 2004.

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