ITXC Chairman Evslin Says That Voice on the Internet Will Surge in India Following Legalization; Predicts Most Voice Traffic To and From India Will be Over the Internet by 2005.

Business Editors/Hi-Tech Writers

BANGALORE, INDIA--(BUSINESS WIRE)--April 17, 2001

In a keynote prepared for delivery at the iLocus.com Show India 2001 being held this week in Bangalore, ITXC Corp (NASDAQ:ITXC) Chairman Tom Evslin predicted that over the next four years India may be the country which benefits the most from Internet telephony.

Last week the Indian Communications Minister, Ram Vilas Paswan, announced that India would legalize Internet telephony in April 2002, two years earlier than previously anticipated. ITXC Corp is the leading worldwide provider of Internet voice services.

Evslin is in India to deliver the iLocus keynote speech and to meet with industry and government telecommunication officials about plans for voice on the Internet in India. As an example of what is possible, he cited the rapid build-out of new IP telephony networks in China.

ITXC works with China Telecom and other licensed carriers to link the domestic voice over IP networks these carriers are building with phones around the world through ITXC.net(SM).

Mr. Jahangir Raina, Director of iLocus.com, agreed with Evslin's predictions adding: "ITXC is a key player in this industry and has shown that it knows how to work with both new and established carriers. ITXC brings its affiliates a network for IP termination in more than 90 countries, a flood of inbound traffic and -- perhaps most important -- experience and expertise in making voice over IP successful."

Speaking in Bangalore, often described as the `Silicon Valley of India,' Evslin said: "India is already a worldwide leader in information technology but suffers from a telecommunications infrastructure which is inadequate for the country's potential economic growth. Better and more available communication is needed within India and between India and the rest of the world. The Internet capacity now being built for data will serve an enormous additional benefit as the infrastructure for widely available voice services. These services include using the Internet as an affordable backbone for traditional phone-to-phone calls and new services which combine voice and other forms of data."

The International Telecommunications Union (ITU), the international body which sets most standards for traditional telephony, said recently in the Report of the Secretary-General on IP Telephony: "A fundamental paradigm shift has been underway in the telecommunications industry - a shift that has arguably brought about as dramatic a change in personal communications as the telephone did compared to the telegram. That change is a shift from traditional PSTN circuit-switched voice networks to packet-switched data networks, using Internet Protocol (IP) technology."

According to TeleGeography 2001, 3% of international phone-to-phone calls worldwide already go over IP networks including the Internet. Also according to TeleGeography, ITXC has the largest market share of any company in the rapidly growing field of IP telephony.

"All calls will be on the Internet by 2010," Evslin predicted, "but the majority of voice traffic to and from India may be on the Internet as early as 2005, due to the announced acceleration of the legalization of Internet telephony. The rapid growth of the Internet already occurring here, the huge unmet need for accessible voice communication, and the high number of skilled technicians mean that Internet telephony will overtake the traditional phone network sooner in India than the rest of the world."

Fourteen of the fifteen largest carriers in the United States are under contract to use ITXC to carry some of their phone-to-phone international traffic over the Internet. Six of the ten major carriers in the world are affiliated with ITXC.net, ITXC's Internet-based network of affiliates spanning over 90 countries.

ITXC uses its patented and patent-pending BestValue Routing(TM) technology to achieve quality so high that most of its carrier customers don't even tell their customers that their calls are being routed over the Internet.

About ITXC:

ITXC Corp (NASDAQ:ITXC) established and operates ITXC.net(SM), the largest global network for voice on the Internet with 466 points of presence in more than 263 cities and 96 countries, as of March 31, 2001. The Company is the leading provider of worldwide Internet voice services with more than one billion minutes of use since the inception of ITXC.net in 1998.

ITXC's patent-pending 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 Push to Talk buttons on Web sites and e-mail, as well as Internet-based Web-to-phone providers and voice portals.

ITXC received the World Communication Award for 2000 as the Best Wholesale Carrier (a category which included major traditional carriers as well). For more information, see www.itxc.com.

Forward looking statements: ITXC may not meet the projections reflected in its forward looking statements due to numerous risks and uncertainties, including, among other factors, the volatile and competitive environment for Internet telephony, changes in domestic and foreign economic, market, and regulatory conditions and other risks detailed in ITXC's reports filed from time to time with the SEC.

ITXC is a registered trademark of ITXC Corp. ITXC.net, 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.

www.itxc.com