S.A. Carrier Calls iBasis

Telecom Argentina has chosen iBasis to help it expand
international service. Financial terms were not disclosed.

With the connection into iBasis’ Internet telephony network, Telecom will gains a new route for its voice and fax traffic. Meanwhile, iBasis, based in Burlington,
Mass., expands the volume of calls it carries to and from Argentina, South America’s second-largest market.

“Our relationship with Telecom, one of Latin America’s largest and most respected Tier 1 carriers, builds on our continuing success in attracting the world’s largest
carriers to our network,” said Ofer Gneezy, president and CEO of Burlington, Mass.-based iBasis.

In addition, iBasis customers from North America, Europe and Asia will be able to more efficiently and reliably route calls to the country.

“Connecting to the iBasis Network enables us to reduce the operational and transport costs of providing Tier 1 international service — which offers great strategic
advantage as we seek to expand our business in South America,” said Maximo Lema, Telecom’s international business director.

At the end of September, Telecom had 3.8 million fixed lines in service and 2.19 mobile users. The company’s third quarter net income was $23 million, below
analyst estimates because of the economic slump.

iBasis runs a global Internet telephony network with more than 589 “points of presence” in more than 80 countries, including many developing nations that have poor
telephone networks. Deals this year involve customers in Zimbabwe, Russia and Switzerland, among others.

Shares of IBAS closed Friday at 0.78. In the last 52 weeks, the issue has ranged from 0.36 to 9.812. Telecom Argentina recently closed at 7. It has a 52 week high
and low of 22.75 and 5.7.

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