BURLINGTON, Mass. -- iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice communications, today announced that Telekom Malaysia, the national carrier of Malaysia, has established a direct VoIP interconnection with The iBasis Network(TM) for exchanging inbound and outbound international voice traffic.

Telekom Malaysia has taken advantage of the iBasis DirectVoIP service to implement a direct IP connection between its multi-vendor VoIP infrastructure and the iBasis Cisco Powered Network(R). As a result, Telekom Malaysia is able to realize the cost-efficiencies of international VoIP for both inbound and outbound internationals calls. It provides iBasis with greater opportunity to capture a significant share of the more than two billion minutes of annual international traffic that either originates or terminates in Malaysia.

Telekom Malaysia joins the more than 230 carriers worldwide who have formed relationships with iBasis to send and receive international long distance calls over the company's Cisco Powered Network, which has carried more than nine billion minutes of international calls. By providing Tier One quality international service to these carriers, iBasis has become one of the world's 10 largest carriers of international traffic(1) and was recently ranked by global service providers for the third consecutive year as the world's best international wholesale carrier(2).

"Large national carriers like Telekom Malaysia are recognizing the value of establishing direct VoIP interconnections for their international service," said Ofer Gneezy, president and CEO of iBasis. "Telekom Malaysia has a strong record of providing innovative services to business and residential customers. By taking advantage of our high quality VoIP service and our many international agreements, Telekom Malaysia can continue to fulfill its mission of being the leading provider of communications services throughout Malaysia."

iBasis Inc.

Telekom Malaysia Bhd.