NEW BRUNSWICK, N.J. -- Arbinet-thexchange, Inc. (Nasdaq: ARBX - News), reported financial results for the second quarter ended June 30, 2007.

Second quarter 2007 fee revenues were $12.5 million, an increase of 9% from $11.5 million in the same quarter 2006. A total of 3.48 billion minutes were bought and sold on Arbinet's exchange in the second quarter 2007, an increase of 17% from 2.99 billion minutes in the second quarter 2006. Arbinet completed 465.4 million calls during the second quarter 2007, compared to 333.5 million for the same period of 2006, representing an increase of 40%. The average call duration on Arbinet's exchange for the second quarter 2007 was 3.7 minutes per call compared to 4.5 minutes per call in the second quarter 2006.

Second quarter 2007 net loss was ($2.5) million or ($0.10) per share, compared to net loss of ($0.6) million or ($0.02) per share in the second quarter 2006. Current year operating results reflect charges of $0.8 million related to litigation matters and $1.0 million for severance costs related to management changes and headcount reductions in the Company's core voice and data business. Current year results also include approximately $0.8 million of costs to support the Company's digital media initiatives, including expenses related to Broad Street Digital Limited, which Arbinet acquired in December 2006. Second quarter 2006 results include $1.3 million of expenses related to Arbinet's proxy contest in connection with its 2006 Annual Meeting of stockholders.

Roger H. Moore, interim Chief Executive Officer and President of Arbinet, commented, "Second quarter volumes on our core exchange tracked slightly lower than the first quarter, and in-line with recent historic trends. We were, however, able to achieve sequentially flat revenues, as we benefited from stabilized pricing. Since assuming the CEO role, we have been working to improve financial performance and regain the company's business momentum. We reduced headcount in our core voice and data business, and realigned our management team to focus our efforts on identified growth opportunities."

"Looking forward, we expect third quarter revenue to comparable to the second quarter. Growth initiatives, settlement of litigation matters and recent cost reduction measures should improve financial performance in the second half of the year. Longer term, we are developing a multi-year plan to apply our technology and services to targeted markets, and will be working with our expanded Board of Directors to identify additional opportunities to increase shareholder value."

Arbinet-thexchange Inc. (Nasdaq: ARBX)