Investments

iBasis Selected by Skype as Carrier for Upcoming SkypeOut International PC-to-Phone Long Distance Calling Service

New Service Builds on Skype Base of 16 Million+ Software Downloads

Bank Of America Investment BURLINGTON, Mass.--(BUSINESS WIRE)--July 23, 2004-- iBasis, Inc. (OTCBB: IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced that it has established an interconnection with Skype, the global Peer-to-Peer (P2P) Internet telephony company, to provide worldwide call termination services over its global VoIP network. iBasis will carry calls originating from Skype's soon to be launched SkypeOut service that will enable users of Skype's application to place phone calls to any phone in the world.
Skype's Peer-to-Peer application is the fastest growing voice communications offering worldwide. The free software, which enables users to use their PCs to make free calls to other Skype users, has been downloaded more than 16 million times since its launch in August 2003. The SkypeOut application will allow users to prepay to place calls to regular landline and mobile phones worldwide.

Get 12 months of unlimited calls to any phone within the US and Canada for just $29.95. Get Skype Unlimited International calling minute rates. The credits are deducted as you make your SkypeOut calls. Buy Skype Credit to make international calls All SkypeOut calls (except those made through the Skype Unlimited Calling plan) are subject to a connection fee.

Investment Opportunity "Skype is delivering on the Big Promise of Internet telephony, which has always been about innovation - the creation of new services and new business models that spawn a new era of growth in global communications," said Ofer Gneezy, president and CEO of iBasis. "By providing consumers an exciting new choice, SkypeOut will dramatically accelerate the growth of phone calls over the Internet, which already account for more than 10% of all international calls."

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Banc Of America Investment "With iBasis' experience in carrying huge volumes of calls and Skype's incredible growth, this is an agreement that fits us both perfectly," said Niklas Zennstrom, Skype's CEO and co-founder. "Together, we can grow the worldwide consumer use of Internet telephony by providing easy access to affordable high quality service."

To qualify for this plan, you must accept online billing and pay via credit card. Customers will be assessed a Carrier Cost Recovery Fee. The Carrier Cost Recovery Fee is 11.9% state and international long distance charges. state and international long distance service, including access charges assessed on Startec by local telephone companies, the cost of terminating calls to international destinations and billing expenses. or international charges on your bill. This fee is not a tax or charge required by the government.

Banking Investment About Skype Technologies S.A.

Priceline.com(R) ( PCLN) has announced an expansion of Priceline Long Distance`s Name Your Own Price(SM) service. The expansion includes the addition of Qwest Communications International Inc. ( Q) partners and the launch of the nation`s only Name Your Own Price(SM) phone card. Priceline Long Distance LLC is a wholly owned subsidiary of priceline.com. Qwest and CNM join Net2Phone and Deltathree, Inc. partners. Priceline Long Distance enables customers to choose their own price for blocks of domestic and international calling time. When Priceline Long Distance receives a customer offer, partners to try to find one willing to accept the offered price. By choosing their own price, Priceline Long Distance customers can save up to 40 percent or more over other popular long distance calling plans.

Investment Solution Strategic Skype, the Global P2P Internet Telephony Company, allows people everywhere to make free, unlimited, superior quality voice calls via its innovative peer-to-peer software. Skype is available in 20 languages and is the fastest growing voice communications offering worldwide. Since its launch in August 2003, Skype has been downloaded more than 16 million times. Skype Technologies S.A. is headquartered in Luxembourg and is growing its office in London and technology development team in Tallinn. Skype Technologies is privately held and backed by top-tier international venture capital firms, including Bessemer Venture Partners, Draper Fisher Jurvetson, Index Ventures, and Mangrove Venture Partners. Skype and the Global P2P Telephony Company are registered trademarks of Skype. More information is available at www.skype.com.

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Investment Banking Services About iBasis

Bank Investment Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail international prepaid calling cards sold through major distributors. iBasis customers include many of the largest telecommunications carriers in the world, including ATT, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. The company's prepaid calling cards are sold through retail stores in major metropolitan markets throughout the U.S. iBasis has carried more than nine billion minutes of international voice over IP (VoIP) traffic over its global Cisco Powered Network(TM), and is one of the ten largest carriers of international voice traffic in the world(1). For three consecutive years service providers have named the company as the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card(2). iBasis was also ranked the #1 fastest-growing technology company in New England in the 2002 and 2003 Technology Fast 50 programs sponsored by Deloitte & Touche. 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.

Alternative Investment Assured Quality Routing and iBasis are registered marks, DirectVoIP and The iBasis Network are trademarks of iBasis, Inc. Cisco and Cisco Powered Network are registered trademarks of Cisco Systems, Inc. All other trademarks are the property of their respective owners.

Online Investment Services Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release, including those relating to the company's current expectations regarding revenue growth, sources of revenue, margin improvement, profitability, future capital expenditures, and cash flows 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.

Accompany Essential Investment (1)Telegeography 2004 data compared with iBasis annualized Q1 2004 traffic volume.

Investment Company (2)ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, & 2004

Investment Management Solution Contacts

Investment Management Services
Media:
iBasis, Inc.
Chris Ward, 781-505-7557
cward@ibasis.net
or
Investors:
iBasis, Inc.
Richard Tennant, 781-505-7409
ir@ibasis.net

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