iBasis 3Q07 Update

• 3Q07 revenue $153.6 million, down from $155.6 million in 2Q07. Wholesale revenue $121.6m (down from $127.8m in 2Q07); Retail revenue $32m (up from $27.8m in 2Q07). iBasis net income for the quarter: $0.2 million.

• Ended 3Q07 with 637 wholesale customers compared to 636 customers at the end of 2Q07. Out of the wholesale customers, 75 are consumer VoIP service provider customers.

• Traffic carried: 3.7 billion minutes, up from 3.5 billion minutes in 2Q07.

• Average revenue per minute 4.20 cents, down from 4.41 cents in 2Q07. Average cost per minute 3.71 cents.

• Cash balance as of September 30, 2007: $58.7 million

• Merger with KPN GCS: Here is the comparison of ‘before’ and ‘after’. iBasis is the legal acquirer, KPN GCS is the ‘accounting acquirer’ since KPN owns majority stake in iBasis now. KPN paid $55 million for 51% in the combined entity.