BURLINGTON, Mass. -- iBasis, a KPN company, today announced that Panama's second-largest telecommunications carrier, Telefonica Moviles Panama, S.A.(Movistar Panama) has interconnected to its network for the exchange of international fixed and mobile phone calls. The deal furthers iBasis' strong presence in Latin America, as well as its long-time relationship with Telefonica, S.A. One of the world's leading wholesale carriers of international long distance calling, iBasis operates a global network that spans more than 100 countries, delivering more than 24 billion minutes of voice traffic annually.

The IP-interconnect with iBasis enables Movistar Panama to leverage the greater cost-efficiencies of iBasis' global network footprint, which includes both traditional TDM and advanced VoIP infrastructure, resulting in high quality, lower-cost international calling for customers throughout the country. The connection also extends iBasis' wholesale termination capabilities in Panama, providing more reliable routes and competitive pricing for its carrier customers and consumers of the company's retail prepaid calling cards and Pingo(R) Web-based services (www.pingo.com).

The agreement enhances iBasis' leadership in Latin America, the world's most rapidly developing telecom market. Based on data from industry research firm TeleGeography, iBasis already carries approximately 25 percent of the world's phone traffic to the region. According to Cisco Systems' recent Visual Networking Index, Latin American consumer and business IP traffic is expected to increase at a 51 percent compound annual growth rate between 2009 and 2014.

"Cost efficiency, without sacrificing reliability, is of great importance to our customers - and iBasis delivers the perfect blend of service," said David Diaz, Manager of International Long Distance, Interconnection and Roaming for Telefonica Moviles Panama, S.A. "The efficiencies offered by IP are undeniable. Not only does iBasis allow us to meet our customers' needs most effectively right now, they provide us with a platform to quickly bring new services to market in the future, ensuring our ability to compete and grow."

iBasis Inc. (Nasdaq: IBAS)