Strategic Alliance Includes ITXC as Exclusive International and Domestic Long Distance Provider to Bolivian Local Exchange Carrier.

Business Editors

SANTA CRUZ, Bolivia--(BUSINESS WIRE)--June 15, 2001

Cotas Plans Primary Phone-to-Phone Service on ITXC Voice over the

Internet Facilities in Time for November Bolivian Deregulation 

ITXC Corp (NASDAQ:ITXC) and COTAS (Telecommunications Cooperative of Santa Cruz), the local telephone operator for Santa Cruz and second-largest local exchange carrier in Bolivia, announced that Cotas plans to use ITXC's global network to offer both international and domestic long distance service to Bolivian customers starting November 28, 2001, the day the Bolivian telecom market opens to competition.

The Cotas-ITXC announcement is the first by an established carrier of a primary phone-to-phone domestic and international long distance service provided exclusively on a voice over IP network. Cotas customers will use their ordinary phones in the ordinary way to make calls to other people with ordinary phones; subscribers will not be required to have computers or any other special equipment.

But, because ITXC can use IP and existing Internet infrastructure to route both within Bolivia and to the rest of the world, Cotas is able to offer nationwide and international service to its customers without the delay or huge capital expense of building a second traditional phone network in Bolivia. For a diagram of the network and other background information on ITXC in Bolivia visit www.itxc.com/bolivia.

The alliance between Cotas, ITXC, ITXC-affiliate Heilsberg S.A. and Teledata, a Cotas subsidiary, will be recognized at a ceremonial signing expected to be witnessed by the Governor of the Department of Santa Cruz, formally representing the President of the Country, and 200 other important Bolivian business, civic, and governmental guests at the Hotel Los Tajibos in Santa Cruz Monday evening, June 18.

"With deregulation quickly approaching, we chose to connect to ITXC.net to expand our voice service offering - in a matter of months - from local service to domestic and worldwide long distance," stated Ronald Castedo, Chairman of Cotas. "We and our subscribers get immediate, high-quality, low-cost access to the rest of the world. This network connection allows us to compete effectively the minute deregulation allows."

In the currently regulated Bolivian telecommunications market, fourteen independent co-operatives provide local telephone service in their own regions. Entel Bolivia, the formerly state-owned national telecommunications company, is the only entity currently permitted to transport long distance voice calls. On November 28, 2001, for the first time ever, the local cooperatives will also be able to offer domestic long distance and international service.

"Cotas is a leader," said ITXC chairman and CEO Tom Evslin. "Many carriers including China Telecom have worked with ITXC to offer alternative voice over IP services; every major carrier in the United States sends some of its international calls over the Internet. Cotas is the first carrier to take full advantage of IP to give its subscribers the advantage of a primary high-quality, low-cost worldwide service.

"Together with our partners we hope to offer this advantage through the other cooperatives to all Bolivians," Evslin continued. "I believe that what Cotas is planning to do in November of 2001 will be emulated in Brazil and India as they deregulate in 2002. This is the future of telephony, especially in the developing world where increased teledensity and better international communication are key to economic development."

Working with Heilsberg, ITXC will provide expertise, VoIP equipment, and technology to the Cotas subsidiary Teledata, which was setup to provide this service for Cotas and other cooperatives. Cotas will access the service by connecting to ITXC.net(SM), the world's largest network for voice on the Internet with points of presence (PoPs) in nearly 500 cities and in more than 100 countries worldwide.

ITXC delivers voice traffic over the Internet for most major U.S.-based international and regional carriers (RBOCs) as well as many incumbent and emerging carriers worldwide. Since 1998, ITXC.net has carried more than 1.5 billion minutes of voice traffic. Carrier customers rely on ITXC's network to enable them to originate high-quality voice traffic at lower cost.

ITXC is able to offer consistent carrier-grade voice quality through its patented BestValue Routing(TM) technology. BestValue Routing enables ITXC to steer calls around Internet congestion and provide both high quality and the economies of using the Internet for transport.

According to the International Telecommunications Union (ITU), the international organization responsible for setting telecom standards, the incentive to choose IP for carriers is great -- especially in countries where existing networks currently serve only a small percent of the total population. Connecting to ITXC.net gives these carriers immediate global reach without the huge capital expense necessary to build a legacy voice network.

"IP telephony continues to emerge as an excellent alternative to carry voice traffic for Latin American operators" said Hector Hernandez, Research Manager for Telecommunications at IDC Latin America. "To date, several of the main regional carriers have embraced the technology and an important portion of their international voice traffic is being carried using VoIP technology. Moving forward, VoIP's potential is very promising. IDC Latin America predicts that Internet telephony long distance traffic will grow with a CAGR of 281% from 2000 to 2004, to reach 20% of the total long distance traffic by 2004."

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 Teledata

The company Teledata is a subsidiary of COTAS (Telecommunications Cooperative of Santa Cruz) in Bolivia. Teledata has teleports in several important locations of the country. Through a modern satellite network, it offers private voice, data, and fax transmission to corporate customers and large companies in between their Santa Cruz headquarters and satellite offices in other Bolivian cities. Banks, petroleum companies, transnational corporations, and communications networks use Teledata's services.

About ITXC

ITXC Corp (NASDAQ:ITXC) established and operates ITXC.net(SM), the largest global network for voice on the Internet with 493 points of presence in more than 283 cities and 103 countries, as of April 30, 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. For more background information on Bolivia, visit www.itxc.com/bolivia.

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.

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.