iBasis Joins MERA's Partnership Program for Seamless VoIP Peering

March 15, 2004

- MERA Launches MERA Friendly Partnership Program for Tier 1 Carriers to Ensure Inter-Carrier Connectivity
- iBasis becomes the First MERA Friendly Partner

Toronto, ON, Canada — March 12, 2004 — MERA Systems, Inc., a forefront supplier of carrier-grade VoIP products for revenue-generating peering of packet networks, today announced its MERA Friendly partnership program for Tier 1 carriers, designed to ensure complete interoperability of carriers' networks with MERA solutions. iBasis, a leading provider of international telecommunications services, has become a MERA Friendly partner to quickly and cost-effectively expand its footprint in desirable destinations.

Under the program, iBasis and MERA carried out joint testing to provide complete and immediate interoperability of MERA's MVTS session controller with iBasis' Cisco Powered Network. MERA and iBasis will continue to ensure that carriers can have a friendly, "anytime and anywhere" connection to iBasis' global network through the MVTS session controller.

MERA Friendly was created in pursuance of a Win-Win-Win strategy, delivering tangible benefits to all the three parties — MERA, Tier 1 carriers, and MVTS-enhanced service providers.

iBasis receives the following benefits:

Enhanced access to prospective terminating and originating partners through instant and seamless connectivity with the MERA solutions
Extended footprint in desirable markets with no capital investment
Joint marketing activities with a leading vendor of session controllers

MVTS-enhanced carriers gain:

Fast and easy VoIP interconnection with one of the ten largest carriers of international voice traffic in the world¹
Guaranteed connectivity: technical support from MERA Systems² to ensure fault-proof interoperability in multivendor environment
Capex savings and speed-to-market: no add-on equipment needed to connect to MERA Friendly network
Fast and unlimited growth through adding new destinations in no time

"Our interoperability effort is a significant factor in enabling us to take advantage of growth opportunities very cost effectively," says Ofer Gneezy, president and CEO of iBasis. "As the volume of our traffic that originates or terminates through direct VoIP interconnections grows, fast and easy connectivity with a variety of VoIP platforms provides substantial cost and competitive advantages. We're pleased to have established this relationship with MERA, and look forward to our mutual success."

"We are excited that the iBasis network is now MERA Friendly," says Natalya Korobkova, Marketing Director, MERA Systems, Inc. "With over 200 global deployments, the MVTS can boast of unparalleled connectivity with virtually any network or equipment. Proven interoperability with one of the world's largest VoIP networks is a milestone in MERA's history, and will help hundreds of our customers to fully benefit from the excellent quality and reliability of iBasis' global network while delivering tangible cost- and resource-saving opportunities."

About MERA Systems, Inc.
MERA Systems, Inc. is the forefront supplier of VoIP technologies delivering the functionality and features needed for successful operation of service providers. The MERA solutions offer a powerful combination of efficiency, scalability and affordable price, bringing added value and revenue-generating opportunities to carriers globally.
MERA is a privately owned corporation with offices in Canada and Russia. It has 12 years of experience in international software development and employs over 400 qualified engineers. MERA Systems pioneered the industry of session border controllers by launching a VoIP division in 2001. Today the company is a key provider of highly reliable and cost-effective SBC's, has over 200 customer deployments in 21 countries of the world, and controls 80% of the SBC market in Russia. To learn more, visit www.mera-systems.com.

About iBasis
Founded in 1996, iBasis (OTCBB: IBAS) is a leading provider of wholesale international telecommunications services. iBasis is a preferred provider for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. iBasis has carried more than eight billion minutes of international voice traffic over its global Cisco Powered Network™, and is one of the ten largest carriers of international voice traffic in the world³.
In addition to its wholesale international telecommunication services, iBasis provides retail international prepaid calling cards through major calling card distributors. For two consecutive years service providers have named the company the best international wholesale carrier in Atlantic-ACM's annual International Wholesale Carrier Report Card⁴. iBasis was ranked the #1 fastest-growing technology company in New England in the 2002 and 2003 Technology Fast 50 programs sponsored by Deloitte & Touche. The company can be reached at its worldwide headquarters in Burlington, Massachusetts, USA at 781-505-7500 or on the Internet at www.ibasis.com.

¹ Telegeography 2004 data compared with iBasis 2003 traffic volume.
² Subject to a respective technical support agreement.
³ Telegeography 2004 data compared with iBasis 2003 traffic volume.
⁴ Atlantic-ACM International Wholesale Carrier Report Card — 2002 & 2003.

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