iBasis and MTS Ukraine Interconnect to Exchange Mobile International Voice Traffic

Leading Ukrainian Mobile Operator Selects iBasis for International
Mobile Services
BURLINGTON, Mass.--(Business Wire)--
iBasis (NASDAQ: IBAS), a KPN affiliate, today announced that MTS
Ukraine, one of the largest mobile operators in Ukraine, has
interconnected with The iBasis Network(TM) for international voice
services. The interconnection with iBasis enables MTS Ukraine to route
its international mobile voice traffic over The iBasis Network and
expands iBasis' ability to complete mobile calls in the country.

In selecting iBasis, MTS Ukraine is taking advantage of iBasis'
comprehensive voice products portfolio, which was enhanced by the
company's acquisition of KPN Global Carrier Service in October 2007.
MTS Ukraine is utilizing iBasis' International Premium Service (IPS),
with its high quality and enhanced feature set for mobile operators.
The synergy between KPN Global Carrier Services and iBasis enables the
combined company to provide mobile operators important mobile features
such as guaranteed CLI and global roaming.

Intense competition in mobile and in the international wholesale
market are driving operators worldwide to find more competitive
solutions based on quality, efficiency, scale and profitability.
Mobile operators are also looking for future-proof solutions that will
help them to compete in the new arena of converged technologies and
services.

"Mobile operators are increasingly recognizing the importance of
an effective strategy for moving to IP and working with global
partners that can help them to increase efficiency in their
international business," said Ofer Gneezy, president and CEO of
iBasis. "With approximately 24 billion minutes of annual international
voice traffic, we are now one of the three largest carriers of
international phone calls in the world (1). We have enhanced our
global product portfolio to provide mobile operators with compelling
solutions for their international business. Our proven resources and
expertise in IP combined with KPN Global Carriers Services' mobile
expertise is enhancing the growth, efficiency and profitability of
leading mobile network operators such as MTS Ukraine."

"Instant scalable access to international infrastructure allows us
to grow our traffic while continuing to offer world standard services
to our mobile subscribers," said Andrey Dubovskov, CEO of MTS Ukraine.
"As one of the top mobile network operators in Europe, it is important
for us to work with leading providers in different telecom branches,
including IP-telephony. iBasis has the proven high quality and
industry-leading expertise we need."

Like many telecommunications markets, growth in Ukraine continues
to be fuelled by mobile expansion. By the end of February 2008, there
were more than 55 million mobile subscribers in Ukraine, with mobile
penetration over 118 %. To continue growth and profitability, mobile
operators are increasingly focusing on expanding lifetime revenue and
profit per customer, and mastering a more competitive market
situation.

Based on KPN Global Carrier Services established business in
mobile services, iBasis has relationships with more than 100 mobile
operators, as well as international traffic from KPN's Dutch, German,
and Belgian operations. In addition to a reliable international
routing product portfolio, iBasis offers a comprehensive portfolio of
value-added services for Mobile Operators, and MVNOs. Called Mobile
Matrix, the mobile data services portfolio offers a wide range of
value added mobile services that can be hosted in iBasis
infrastructure.

About MTS Ukraine

The MTS Ukraine network covers more than 95 % of Ukraine and 99 %
of the population. The company serves around 20 million subscribers.
MTS Ukraine owns licenses for providing mobile (GSM 900/1800,
CDMA-450), fixed, toll, and long-distance communication services, and
provides international roaming services on five continents. The
company reported $1.49 billion revenues in 2006. For more information,
visit web site: www.mts.com.ua.

About iBasis

Founded in 1996, iBasis (NASDAQ: IBAS) is a leading wholesale
carrier of international long distance telephone calls and a provider
of retail prepaid calling services and enhanced services for mobile
operators. iBasis customers include KPN, KPN Mobile, E-Plus, BASE, and
many other large telecommunications carriers such as AT&T, Verizon,
Vodafone, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom
Italia, Telefonica, and Yahoo. In October 2007, iBasis acquired KPN
Global Carrier Services to create one of the three largest carriers of
international voice traffic in the world, and KPN became a majority
stockholder of iBasis. On a pro forma basis, the combined company
carried approximately 24 billion minutes of international voice
traffic in 2007. The Company can be reached at its worldwide
headquarters in Burlington, Mass., USA at +1 781-505-7500 or on the
Internet at www.ibasis.com.

1 Based on Telegeography 2008 and iBasis pro forma 2007 traffic.

iBasis and KPN are registered marks. All other trademarks are the
property of their respective owners.

Except for historical information, all of the expectations, plans
and assumptions contained in the foregoing press release constitute
forward-looking statements under Section 21E of the Securities
Exchange Act of 1934 and involve risks and uncertainties that could
cause results to vary materially. For a description of certain of
these risks and uncertainties please read the Company's most recent
Annual Report on Form 10-K and other periodic and current reports, all
of which are available at www.sec.gov. Such forward-looking statements
are only as of the date they are made, and we have no current
intention to update any forward-looking statements.

iBasis, Inc.
Chris Ward, 781-505-7557
cward@ibasis.net
http://www.ibasis.net

Copyright Business Wire 2008