ISPs in Asia Gain Simple, Cost-Effective Access to Tier One ISPs in Asia and U.S.

 

New Brunswick, NEW JERSEY – November 17, 2008 – Arbinet-thexchange, Inc. [Nasdaq: ARBX], a leading provider of innovative voice and IP solutions for buying and selling telecommunications capacity, today announces it has expanded its IP services with a new Hong Kong IP Exchange. Arbinet’s Hong Kong location is operational and ready to connect ISP sellers and buyers. Located at the MEGA-i Data Center, Arbinet’s new exchange provides customers in Asia with a cost-effective way to connect with ISP suppliers and manage their relationships more efficiently. Arbinet provides a simple, scalable solution for quality IP transit supply for service providers such as ISPs, VoIP operators, ASPs, content and other IP application providers.

Arbinet expects its first group of buyers to connect in Hong Kong by the end of the year. They will benefit from a scalable and affordable solution for connecting directly to multiple global and regional Tier-1 Internet Service Providers (ISPs) such as Telekom Malaysia. Customers will enjoy simplified IP supply management, network cost savings and optimized global internet routing performance. Additionally, Arbinet is in the process of expanding the reach of this exchange to customers in the HKCOLO Sinofavour data center. Arbinet expects to complete this expansion by December 2008.

Unlike traditional IP exchanges, Arbinet’s IP exchange enables buyers to purchase IP transit from multiple suppliers through a single connection, contract and bill. This provides customers a “one-stop shop” for paid peering and IP transit from ISPs selling locally on Arbinet’s Hong Kong exchange as well as its Los Angeles exchange. For quality-sensitive or mission-critical applications, Arbinet also offers an optimization solution for routing traffic based on near real-time quality metrics of jitter, latency and packet loss rather than traditional “best effort” Internet routing.

“Hong Kong has emerged as the second largest Internet hub in Asia and is a vital gateway to China," commented Alan Mauldin, Research Director at TeleGeography. "Our research has indicated that Intra-Asian Internet traffic has grown nearly 65% annually (CAGR) between 2004 and 2008." The Telegeography research demonstrates the demand that Arbinet’s new Hong Kong IP platform will fulfill.

This expansion supports Arbinet’s core business objective of growing the company’s Voice and IP service offerings throughout the world and provides customers with flexible ways to manage their communications supply relationships more effectively.

“Arbinet is committed to providing its customers with more choices and greater flexibility to grow their businesses,” states Steve Heap, Chief Technology Officer of Arbinet. “Similar to our voice exchange business, our IP exchange is an efficient marketplace for buying, selling, routing and settling IP transit capacity. With Arbinet’s access and expertise, our Asian and global customers can now tap into a one-stop buying experience to connect directly to multiple ISPs and peers to conduct business more efficiently.”

For more information on Arbinet, visit www.arbinet.com.

About Arbinet
Arbinet is a leading provider of innovative voice and IP solutions empowering communications companies to create the most efficient and valuable global interconnections. Arbinet offers the greatest flexibility in global scale, platform intelligence, and managed solutions to achieve commercial efficiency and interconnection simplicity.

Arbinet manages business relationships, back office operations and call routing for Members who route through Arbinet approximately 2% of the world’s international voice traffic to over 1,300 destinations worldwide. These Members include fixed line, mobile, wholesale and VoIP carriers as well as calling card, ISPs and content providers around the world who buy and sell voice and IP telecommunications capacity and content. For more information about Arbinet’s solutions, visit www.arbinet.com

Forward-Looking Statements
This press release contains forward-looking statements regarding anticipated future revenues, growth, capital expenditures, management’s future expansion plans, expected product and service developments or enhancements, and future operating results. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as: "believes," "expects," "may," "will," "should" or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Various important risks and uncertainties may cause Arbinet’s actual results to differ materially from the results indicated by these forward-looking statements, including, without limitation:; members (in particular, significant trading members) not trading on our exchange or utilizing our new and additional services (including DirectAxcessSM, PrivateExchangeSM, AssuredAxcessSM and PeeringSolutionsSM); continued volatility in the volume and mix of trading activity; our uncertain and long member enrollment cycle; the failure to manage our credit risk; failure to manage our growth; pricing pressure; investment in our management team and investments in our personnel; regulatory uncertainty; system failures, human error and security breaches that could cause Arbinet to lose members and expose it to liability; Arbinet’s ability to obtain and enforce patent protection for our methods and technologies; and disruption or uncertainty resulting from recent changes in senior management. For a further list and description of the risks and uncertainties the Company faces, please refer to Part I, Item 1A of the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 17, 2008, and other filings that have been filed with the Securities and Exchange Commission. Arbinet assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise and such statements are current only as of the date they are made.

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120 Albany St. Tower II, Suite 450, New Brunswick, NJ 08901
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com.