iBasis Interconnects with Cable & Wireless Panama

BURLINGTON, Mass.--(BUSINESS WIRE)--iBasis, Inc. (NASDAQ: IBAS - News), the Global VoIP Company, today announced that Cable & Wireless Panama, the largest provider of fixed-line, mobile and Internet services in Panama, has interconnected with The iBasis Network(TM) for international voice services.

The interconnections with iBasis enables Cable & Wireless Panama, the Panamanian unit of British parent company Cable & Wireless, to route international voice traffic over The iBasis Network, the leading global VoIP network, to anywhere in the world, including neighboring countries such as Honduras, Cayman Islands, Costa Rica and Colombia, as well as North America, that exchange large volumes of phone traffic with Panama.

The agreement also expands iBasis' ability to complete calls to fixed and mobile phones in Panama. "Mobile-originated traffic from Latin America grew 40% from 2004 to 2005(1), which is representative of the worldwide migration of international voice traffic to mobile networks," said Ofer Gneezy, president and CEO of iBasis. "We are very pleased to add Cable & Wireless Panama to our growing customer base and to have them utilizing our leading VoIP network for their international traffic. Our proven resources and expertise in VoIP are enhancing the growth, efficiency and profitability of leading mobile network operators such as Cable & Wireless Panama." iBasis delivers improved call completion and duration that generate additional minutes per call and revenue for a mobile operator, enabling them to increase average revenue per user.

Cable & Wireless is leveraging iBasis' advanced international routing portfolio, including its PremiumCertified(TM) service, which certifies higher route quality and stability. According to Latin Business Chronicle, Panama is the most globalized economy of the Americas, and telecommunications is one of its most dynamic sectors. Although growth is slow to develop in basic telephony, and internet penetration is still low, broadband connections are developing at a fast pace. Like many telecommunications markets, growth in Panama is fuelled by the continued conversion from fixed to mobile phones and by broadband growth.

In Panama, mobile telephony overtook fixed lines in 2001 and has been steadily growing. Panama has a mobile penetration rate of more than 50% with currently 1.8 million mobile users. To sustain growth and face a more competitive market, mobile operators are increasingly focusing on international voice revenues and margins and are looking at innovative options to enhance their international business profitability. About Cable & Wireless Cable & Wireless operates in 34 countries across the globe, including the Caribbean, Panama, Asia, the Middle East and the Pacific.

In the majority of markets it is the leading telecoms provider, offering a complete service including local and international telephony, mobile and Internet to residential and business customers. Cable & Wireless now faces competition in 90% of its markets and continues to compete with new rivals by investing in world-class innovation, technology and people. It is proud to be contributing to the local economies and communities in which it operates and continues to build its brand and deliver excellence to its customers around the world. About iBasis Founded in 1996, iBasis (NASDAQ: IBAS - News) 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, and Telefonica. 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.

iBasis and Pingo are registered marks; PremiumCertified and The iBasis Network are trademarks of iBasis, 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 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 2007
Contact:

iBasis, Inc.

Media:

Chris Ward, 781-505-7557

cward@ibasis.net

or

Investors:

Richard Tennant, 781-505-7409

ir@ibasis.net