BURLINGTON, Mass. -- iBasis, Inc. (OTCBB: IBAS), the global VoIP company(TM), today announced results for the first quarter ended March 31, 2006.

Revenue for the first quarter of 2006 was $110.8 million, compared to $88.7 million for the first quarter of 2005. Net income for the first quarter of 2006 was $1.6 million, or $0.02 per share, compared to net income for the first quarter of 2005 of $0.2 million, or $0.00 per share.

iBasis achieved $3.2 million in adjusted EBITDA for the first quarter of 2006, compared to Adjusted EBITDA of $2.9 million in the first quarter of 2005. Adjusted EBITDA is a non-GAAP measurement presented to provide further information about the Company's operating trends, as explained below.

The Company purchased 1.1 million shares of its common stock for $2.3 million in the first quarter of 2006, under its $15 million stock buy-back program.

Highlights of the first quarter include:

"We have good news across the board," said Ofer Gneezy, president and CEO of iBasis. "We achieved record revenue and gross profit and a full percentage point expansion in gross margin over the fourth quarter of 2005 in both our Trading and our Retail businesses, resulting in a healthy increase in net income and cash flow.

"In our Trading business, we grew our traffic to higher-margin destinations and continued to benefit from our higher margin business with consumer VoIP providers, which accounted for 10% of our Trading revenue in the quarter. We ended the first quarter with more than 35 consumer VoIP provider customers.

"In our Retail business, we improved the management of pricing, distribution, and promotions, resulting in simultaneous increases in revenue and gross profit, as well as an expansion in gross margin.

"On May 2, iBasis shareholders will be voting on a proposed reverse stock split at our annual meeting. We believe this is an important step towards meeting the requirements for NASDAQ listing, and we look forward to our anticipated return to that major stock exchange.

"We're very pleased with our Q1 results, and we are confident that iBasis is on the right track to achieve its goals."

iBasis Inc. (Nasdaq: IBAS)