PRINCETON, N.J. -- ITXC Corp.® (NASDAQ: ITXC), one of the world's leading telecommunications carriers, and Lanka Bell Private, Ltd., the leading wireless local loop operator in Sri Lanka, today announced that the companies have signed an agreement for bilateral exchange of international voice traffic to and from Sri Lanka over ITXC.net®.

ITXC operates the world's largest international VoIP network, ITXC.net, capable of reaching every phone in the world through direct traffic relationships with hundreds of local, national and global carriers in over 175 countries. Lanka Bell is a fixed-line operator utilizing wireless local loop technology.

Lanka Bell will benefit from the revenue they receive for completing calls in Sri Lanka, which are sent by carriers around the world and aggregated by ITXC. They will also benefit from the low cost and high quality call completion ITXC provides for international calls originated by Lanka Bell customers in Sri Lanka.

"In Sri Lanka's highly competitive telecommunications market, Lanka Bell is deeply committed to providing high quality, reasonable cost services to our customers using state-of-the-art technology," said Joey V. Mendoza, Managing Director & CEO from Lanka Bell. "Through our relationship with ITXC, we are able to lower our operating costs using VoIP technology, enabling us to offer competitively priced, high quality voice services to our clients. Our connection to ITXC.net allows us to take full advantage of ITXC's extensive global network over which we can exchange international calls to and from any destination in the world."

"Lanka Bell is a proven innovator, pioneering wireless local loop services in Sri Lanka," said Diarmid Massey, ITXC Managing Director for Asia Pacific. "Through a single connection to ITXC.net, Lanka Bell now has access to an instant international network, a competitive cost basis for outbound calls and new revenue for inbound calls. This combination frees Lanka Bell's capital and resources and allows them to continue to focus on retail end user acquisition and retention."

The telecommunications market in Sri Lanka has seen incredible growth within the past few years. According to the TeleGeography 2003 report, teledensity in Sri Lanka has grown 200% in five years, from 1.4 million in 1996 to 4.2 million in 2001. From 1996 to 2001, outgoing minutes increased over 80% from 29.3 million minutes to 54 million minutes and incoming minutes increased over 85% from 96 million minutes to 180 million minutes.

ITXC Corp.