Bolivian President, Ministers, British, and German Ambassadors Laud Planned Service Based on ITXC.net; Story is Front Page News in Bolivia.

Business Editors/Hi-Tech Writers

PRINCETON, N.J.--(BUSINESS WIRE)--June 22, 2001

Before an audience of 600 dignitaries including ambassadors, elected officials, government ministers, and civic leaders, COTAS (Telecommunications Cooperative of Santa Cruz), the local telephone operator in Santa Cruz and second-largest local exchange carrier in Bolivia, signed a document recognizing its strategic alliance with ITXC Corp (NASDAQ:ITXC).

The alliance includes ITXC as the exclusive network provider for a primary competitive long distance service which Cotas plans to offer to phone callers throughout Bolivia. ITXC and its global network enable Cotas' plan to offer competitive long distance service on the day deregulation takes effect -- November 28, 2001.

The event, held June 18th at the Los Tajibos Hotel in Santa Cruz, received broadcast coverage on all of the national television networks as well as front-page placement in every Santa Cruz newspaper the following morning.

In a letter applauding the announcement read at the ceremony by Santa Cruz Governor Ramon Prada, Bolivian President Hugo Banzer said: "Most cordial congratulations on an agreement that is integral to the development of our country. Best wishes for complete success and achievement as you embark on your journey using the most advanced and modern technology in the telecom sector."

This is the first time a primary phone-to-phone service including both domestic and international long distance has been planned based solely and specifically on voice over the Internet.

ITXC has already demonstrated that voice over the Internet can meet the quality needs of the most demanding carriers in the world; almost all major carriers in the United States as well as carriers like China Telecom, Korea Telecom, and Telstra use ITXC to carry some of their international phone-to-phone traffic.

ITXC carries about five million minutes per day of this traffic over the Internet and is one of the world's largest wholesale carriers.

ITXC and its partner Heilsberg, Ltd. are providing a domestic and international long distance infrastructure at very low capital cost to Cotas and its subsidiary Teledata. Adopting voice on the Internet technology to provide long distance service allows Cotas to invest its limited capital in increasing local lines and providing excellent customer service.

In addition to Ricardo Castedo, the Chairman of Cotas; Tom Evslin, the Chairman of ITXC; and Michael Alter, the president of Heilsberg, other speakers included Ramon Prada, the Governor of Santa Cruz; the American and German Ambassadors to Bolivia; the Superintendents (Ministers) of Labor and Telecommunications, and the commercial attache from the United States Embassy.

Addressing the audience, Tom Evslin, President and CEO of ITXC, said, "There is no need for the developing world to follow in the footsteps of the United States and Western Europe, which built separate voice and data networks. Now one network, the Internet, can carry all forms of data including voice with great efficiency both in the capital required for network buildout and operating costs. Following in someone's footsteps is a sure way to stay behind. Voice over the Internet gives Bolivia and the developing world a direct path to the future."

Mr. Guido Loayza, the Superintendent of Telecommunications in Bolivia, added, "Deregulation is a necessary step in attracting new capital to the sector and in modernizing to achieve higher levels of internal efficiency and to increase profitability. The biggest winner in this new era of telecommunications will be the end user, not only due to the introduction of new technologies, but also the drastic reduction in long distance rates."

This sentiment was reinforced by Mr. Hans Lohner Paz, General Manager of Cotas: "It's all about a new era in telecommunications that allows high quality services that until now have been out-of-reach to Cotas' subscribers. The technology will be cutting edge. The prices will be competitive. And we will be able to fight the competition."

ITXC expects that services like that first offered in Bolivia will become the preferred way for competitive carriers to establish themselves in newly deregulated markets. Both Brazilian and Indian markets will open to much more competition in 2002.

ITXC built its 100+ country network on traffic going largely from the US and Western Europe to the developing world. Now, as the developing world begins to allow competition for outbound and domestic long distance, ITXC.net(SM) is in the right places at the right time and ITXC has relationships with both incumbents and the competitive carriers of the future.

ITXC already earns higher margins on traffic originated in underserved markets than it does on its traffic originated in the US and Western Europe although this traffic has also been earning a gross profit for the last six reported quarters despite the fierce competition in these markets.

ITXC reported in its last quarterly teleconference that the percentage of non-US originated traffic has been growing. The company also expects that complete outsourced transport like that planned for Bolivia will earn higher margins than simple transport since greater value is delivered to the carrier customer.

Voice over the Internet is increasingly being used to serve domestic long distance as well as international needs. ITXC affiliate China Telecom has been providing both domestic and international service for over two years. Cotas will do the same.

More information on ITXC's plans for Bolivia can be found at www.itxc.com/Bolivia.

About COTAS

COTAS Ltda. (COOPERATIVA DE TELECOMUNICACIONES SANTA CRUZ Ltda.) Santa Cruz Telecommunications Cooperative Ltd. is the second largest local phone cooperative in Bolivia. It leads the other cooperatives in both technology and call volume, is the largest provider of Internet service, and has the most cable TV subscribers inside its coverage area.

About Heilsberg S.A.

Heilsberg S.A., a British and German-financed company, has offices in Peru and Chile, with Argentina and Brazil coming soon. Heilsberg leads the wholesale long distance telephony market in Chile, and through a subsidiary, Carrier 116, sells long distance service to end customers as well.

About ITXC

ITXC Corp (NASDAQ:ITXC) established and operates ITXC.net(SM), the largest global network for voice on the Internet with 530 points of presence in more than 298 cities and 105 countries, as of May 31, 2001. The company is the leading provider of worldwide Internet voice services with more than 1.5 billion minutes of use since the inception of ITXC.net in 1998.

ITXC's patented BestValue Routing(TM) technology provides such high voice quality over the Internet that tier one carriers use ITXC for worldwide phone-to-phone traffic without indicating that the calls are actually going over the Internet.

Customers include major traditional carriers and RBOCs who achieve lower costs for phone-to-phone calls while maintaining carrier quality, Web merchants who increase sales with ITXC Push to Talk buttons on Web sites and e-mail, as well as Internet-based Web-to-phone providers and voice portals. For more information, visit www.itxc.com.

Forward looking statements: ITXC has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

"Forward-looking statements" consist of all non-historical information and include without limitation the analysis of historical data, the plans for service in Bolivia and other countries, and the predictions of margins in this release.

Actual results could differ materially from those projected in the Company's forward-looking statements due to numerous known and unknown risks and uncertainties including, among other things, unanticipated technological difficulties, the volatile and competitive environment for Internet telephony, changes in domestic and foreign economic, market, and regulatory conditions, the creditworthiness of our customers and other considerations described as "Risk Factors" in Exhibit 99 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000 and in other filings by the Company with the SEC.

ITXC is a registered trademark of ITXC Corp. ITXC.net, ITXC Push to Talk, and BestValue Routing are service marks and trademarks of ITXC Corp. All other trademarks mentioned in this document are the property of their respective owners.