iBasis Reduces Cost of Calls to the Philippines for its Pingo(R) Prepaid Service Customers.

RateWatcher[TM] Reduction Offers Significant Savings for Pingo Subscribers

BURLINGTON, Mass. -- Pingo (www.pingo.com), the prepaid calling card service of iBasis (NASDAQ:IBAS), today announced new lower rates on calls to the Philippines -- 13.75 cents for calls to landline phones and 14.5 cents for calls to mobile phones. The Philippines is one of the highest-volume calling destinations in the world, and is a particularly popular destination for users of prepaid calling card services such as Pingo. Philippines long distance calls comprise approximately 4 percent of all international calls from the U.S.1

The reduction in Pingo's international calling card rates to the Philippines is the result of RateWatcher, a feature of Pingo that actively searches for opportunities to reduce costs and pass the savings along to Pingo phone card subscribers. RateWatcher is just one of the features that makes Pingo "the last calling card you'll ever need[TM]". With RateWatcher, Pingo calling card customers benefit from the worldwide buying power of iBasis, one of the largest carriers of international telephone calls in the world.

By monitoring changing long distance costs around the world, RateWatcher finds opportunities to lower Pingo's costs, provide low international calling rates, and save Pingo subscribers from the chore of having to compare a multitude of prepaid calling card offerings. Previous RateWatcher reductions have included lower rates to many of the most popular calling destinations in India, Latin America, and Asia, as well on calls to almost one billion mobile phones in 100 countries.

"With Pingo we are able to leverage the scale and efficiency of the iBasis global VoIP network to offer exceptional prepaid calling rates combined with great convenience features," said Ofer Gneezy, president and CEO of iBasis. "There are large Filipino communities in the U.S. and in many of the other 34 countries where Pingo is available. We believe this RateWatcher reduction will help Pingo attract many new subscribers while rewarding existing customers."

About Pingo

Taking advantage of The iBasis Network, Pingo enables consumers to realize the cost-savings of VoIP or Internet telephony from regular fixed or mobile phones without any need for additional hardware or software. Pingo offers consumers high-quality long distance service on a prepaid basis, along with a host of convenient usability features. Pingo customers save on calls to both landline and mobile phones in almost every country. Mobile phone users in particular can save as much as 90 percent on international calls by using Pingo's toll-free access and lower rates. Pingo minutes can be purchased with credit and debit cards, as well as PayPay, at www.pingo.com. Customers can access Pingo from toll-free and local access numbers in 35 countries, including the U.S., Australia, Canada, China, the U.K., France, Germany, Israel, Japan, Russia, and Thailand.

About iBasis

Founded in 1996, iBasis (NASDAQ:IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services, including the Pingo[R] web-based offering (www.pingo.com) and disposable calling cards that are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers, including AT&T, Verizon, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia, and Telefonica. iBasis carried 7.8 billion minutes of international voice over IP (VoIP) traffic in 2005, and is one of the largest carriers of international voice traffic in the world2. 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.

1 Telegeography 2006

2 Telegeography 2006 data compared with iBasis 2005 traffic volume.