LONDON -- iBasis, Inc. (OTCBB: IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced that the company is expanding its regionalized global architecture, adding to its facility in London to meet growing demand for VoIP services among consumers, small-and-medium sized enterprises, and corporates in Europe. This expansion of iBasis' DirectVoIP Broadband capacity offers VoIP service providers fast and secure IP interconnections to the iBasis global VoIP network through the London facility to enable high quality international voice services for consumer and corporate customers.

Retail VoIP services have achieved explosive growth recently. By the end of 2004, more than 14.5 million consumers worldwide had subscribed to VoIP services, and adoption is forecasted to almost double annually for the next several years. Industry analyst firm Ovum has projected that consumer VoIP services will attract 200 million subscribers by 2008. Both new providers and incumbent carriers are expected to leverage the innovative features and cost savings of VoIP to compete more effectively for new customers. This trend is driving an increase in the demand for high quality and competitive international voice service that meets the specific needs of voice over broadband (VoBB) providers.

iBasis enhanced its global VoIP architecture to fulfill this accelerated demand from emerging VoBB providers, and to help them to expand their service portfolio by enabling their VoIP customers to call fixed and mobile phones directly at very competitive rates. iBasis has experienced great success in interconnecting with leading VoBB providers, including Skype, the Global Internet Telephony Company(TM) that has attracted more than 35 million users worldwide and 1.2 million customers for its SkypeOut premium service, which enables its customers to call any fixed or mobile phone worldwide for local rates.

"The expansion of our DirectVoIP Broadband architecture into our London facility enables us to offer a very convenient and complete solution that allows providers of retail VoIP services to connect their subscribers to virtually any phone in the world, whether it's a fixed or mobile phone," said Ofer Gneezy, president and CEO of iBasis. "This expansion gives us plenty of capacity to keep up with the rapidly growing demand for retail VoIP services, such as the SkypeOut service, and deliver the same high quality of service to other emerging VoIP providers and their subscribers throughout Europe."

iBasis Inc.