iBasis Reports First Quarter 2008 Results

Business Wire, April 28, 2008

"We are also making progress in combining our products into a single comprehensive portfolio, have reorganized our global sales team to ensure efficient account management and business development, and have completed training on products and capabilities, which will enable effective cross-selling.

"I am pleased with our progress in integrating the legacy iBasis and KPN Global Carrier Services, which we now call iBasis Netherlands. That transaction got us a step closer to our objective to be the #1 carrier of international voice traffic. Our successful transactions with KPN and TDC are the first steps to achieving our objective. During the first quarter, we discontinued pursuing a transaction that did not work out, and the costs were expensed in Q1. We continue to be excited about the opportunities created by the consolidation trend and look forward to additional successful transactions in the future, provided reasonably-priced debt is available or our equity strengthens significantly."

Stock Repurchase Program

iBasis also announced today that its board of directors has approved a stock repurchase program, authorizing the repurchase of up to $15 million of common stock over the next six months. Commenting on the announcement, Mr. Ofer Gneezy, CEO of iBasis, said, "Management and our Board are confident in the business strategy and outlook. We have initiated our stock repurchase program in view of the current market price for the Company's shares which we believe is far below the Company's true value and its future growth prospects. The continued execution of our strategy will create significant value for our shareholders, making it prudent for us to invest in our shares which we believe are undervalued."

The repurchases will be made from time to time in the open market and potentially in privately negotiated purchases. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time.

No shares will be purchased from KPN as part of the program.

Operational Milestones

Minutes of use on The iBasis Network[TM] in the first quarter 2008 were 5.8 billion, compared to pro forma traffic of 5.5 billion minutes in Q1 2007 and 6.0 billion minutes in Q4 2007. Average revenue per minute was 5.59 cents, compared to pro forma 5.85 cents in Q1 2007 and 5.83 cents in Q4 2007. Average cost per minute was 4.98 cents, compared to pro forma 5.27 cents in Q1 2007 and 5.18 cents in Q4 2007. Average margin per minute was 0.61 cents, compared to pro forma 0.58 cents in Q1 2007 and 0.65 cents in Q4 2007.

Guidance

The Company believes that in 2008 Adjusted EBITDA will be $60 to $65 million and capital asset expenditures will be $25 to $30 million.

Q1 Results Conference Call

iBasis will host a conference call to discuss the Company's selected Q1 results, led by Ofer Gneezy, iBasis president & CEO on April 28, 2008 at 5:00 p.m. EDT. The public is invited to listen to the simultaneous webcast by logging in through the iBasis investor relations website at http://investor.ibasis.com.