Yahoo! Connects with iBasis for International Voice Services

Yahoo! Connects with iBasis for International Voice Services

iBasis, Inc. (OTCBB: IBSE), the global VoIP company(TM), and Yahoo! Inc, a leading global Internet company, announced today that iBasis is providing international call termination for the Yahoo! Messenger with Voice service. iBasis is among the suite of providers delivering high-quality termination services for calls from the U.S. to international markets. The interconnection with iBasis enables Yahoo! Messenger with Voice to offer its customers high quality PC-to-Phone calling over iBasis’ global VoIP network at very competitive rates.

Yahoo! Messenger with Voice provides enhanced PC-based calling capabilities for both making and receiving phone calls, depending on the combination of services purchased, at some of the lowest rates in the Voice over Internet Protocol (VoIP) industry. With the Phone Out feature, which leverages The iBasis Network for international calls, consumers in the U.S. can make VoIP PC-to-Phone calls by using their PC to place calls to traditional or mobile phones to more than 180 countries(1). Calls within the U.S. and to over 30 other countries can be made for two cents a minute or less(2).

The interconnection with iBasis includes use of iBasis’ PremiumCertified(TM) international routing product, which is specifically designed to deliver the highest quality of service for retail traffic, and the company’s DirectVoIP(TM) Broadband IP interconnection service.

“Like the Internet itself, Yahoo! is ubiquitous,” said Ofer Gneezy, president and CEO of iBasis. “By delivering innovative services and compelling features to their enormous customer base, Yahoo! is playing a major role in the transformation of how people communicate. They did it with Yahoo! Messenger, and now they will do it with Yahoo! Messenger with Voice. We’re very excited to be an integral part of the service.”

About iBasis

Founded in 1996, iBasis (OTCBB: IBSE) 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, which are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Skype, and Telefonica. iBasis carried 7.8 billion minutes of international voice over IP (VoIP) traffic in 2005, and is one of the ten largest carriers of international voice traffic in the world. For four consecutive years service providers named iBasis the best international wholesale carrier in ATLANTIC-ACM’s annual International Wholesale Carrier Report Card. iBasis was also ranked among the fastest-growing technology companies in New England in the 2002, 2003, 2004, and 2005 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.

(1) PLEASE NOTE: 911 and other emergency service numbers currently cannot be accessed through Yahoo! Messenger with Voice or Yahoo! Voice services. Users must use a traditional phone or mobile phone to access 911 or other emergency service numbers. Internet access and compatible PC required. Yahoo! Voice Phone Out and Phone In services must be purchased separately and require users to download Yahoo! Messenger with Voice version 7.5.

(2) Rates in the U.S. only. Calls to mobile phones or other wireless devices may be charged at higher rates than calls to traditional landline phones. All rates, promotional or otherwise, are subject to change at any time without notice. Call times are billed in one-minute increments.

iBasis, and Pingo are registered marks, and PremiumCertified and The iBasis Network are trademarks of iBasis, Inc. Yahoo! is a registered trademark of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners. (C) 2006 iBasis, Inc., All rights reserved.

Except for historical information, all of the expectations, plans and assumptions contained in the foregoing press release constitute forward-looking statements under Section 21E of the Securities Exchange Act of 1934 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 Company’s ability to execute its business plan; (ii) the Company’s ability to meet the listing requirements of NASDAQ, (iii) the extent of adoption of the Company’s services and the timing and amount of revenue and gross profit generated by these services; (iv) fluctuations in the market for and pricing of these services; and (v) 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. Such forward-looking statements are only as of the date they are made, and we have no current intention to update any forward-looking statements.