iBasis Restated on Nasdaq

BURLINGTON, Mass. -- iBasis (NASDAQ: IBAS - News), the global VoIP company, today announced that it has been informed by the Nasdaq Listing and Hearing Review Council that it is in compliance with all Nasdaq Marketplace Rules for continued listing on the Nasdaq Global Market and that the matter is now closed.

In June, the Company completed its previously announced financial restatement and filed its Annual Report on Form 10-K for the year ended December 31, 2006, its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, bringing the Company up to date on its periodic reports.

As previously announced, a Special Committee of independent directors appointed by the Board of Directors of the Company conducted an internal investigation relating to stock options granted to the employees of the Company, the timing of such grants and their related accounting and tax treatment. On October 20, 2006, the Company disclosed that the Special Committee had concluded that the appropriate measurement dates for determining the accounting treatment of certain stock option grants differ from the measurement dates used by the Company in preparing its financial statements.

As previously announced, the Company had received notice that it was not in compliance with Nasdaq listing requirements due to its failure to file its periodic reports. This was the result of discrepancies in measurement dates for determining the accounting treatment of certain stock option grants. On March 12, 2007, the Company was informed by The Nasdaq Stock Market that the Nasdaq Listing and Hearing Review Council had stayed the April 26, 2007 deadline for the delisting of the Company's securities, pending further action by the Listing Council. The Listing Council further informed the Company that it may submit additional written information for the Listing Council's consideration by June 1, 2007. In its June 1 submission to the Listing Council, the Company requested additional time to complete its delinquent periodic filings, which it did on June 25.

"Now that we have completed the restatement process and are once again compliant with all Nasdaq listing requirements, we are focused on finalizing the preparation of a preliminary proxy statement to seek shareholder approval of our previously announced transaction with Royal KPN N.V.," said Ofer Gneezy, president and CEO of iBasis.

iBasis Inc. (Nasdaq: IBAS)