Press Release 2.1.98

Arbinet and ITT Announce New Service

ITT Kokusai Den Den Co. Ltd., a Japanese telecom service provider and Arbinet, a New York based solutions provider for the international carriers has deployed a new telecommunications service in 3 major cities in Japan: Tokyo, Osaka and Nagoya. The service is the first commercial implementation of VOIP in Japan that involves transporting domestic and international voice and fax calls over the OCN, which is the Japanese version of a managed Internet. The engine driving the service is Arbinet’s CLN equipment, an Industrial PC based switching system.

ITT is franchising the Voice and Fax over OCN service and selling directly to mid-size corporations and retailers in Japan. “The high cost of long distance calls when using the traditional PSTN in Japan has created an opportunity, ITT now has the technology to offer discounted intra-Japan traffic while maintaining the high quality standards demanded by the Japanese consumers, we are very happy to be part of the first implementation of VOIP on OCN”, says Alex Mashinsky, Chairman and Founder of Arbinet.

By using the CLN’s unique least cost routing capabilities, ITT will extend this service to the international arena with the provisioning of private lines and or the managed Internet during the 1st quarter of 1998. International calls will be automatically sent to the CLN, which will terminate the call at the lowest cost to ITT.

For example, the cheapest way to route a call to the UK may be to terminate the call through a CLN in New York. In the case, the origination CLN will haul the call over IP to the destination CLN in New York, which will then terminate the call over the PSTN to the UK. ITT has agreed to cross connect its network to the Arbinet Global Clearing Network and to provide origination and termination for voice, fax and data services to Arbinet’s existing world-wide carrier partners which include 7 of the top 40 carriers.

Arbinet is a leader in computer-based telephony, providing cost efficient switching hardware, global network management software and alternate access products to the world’s largest international carriers.

For more information, please contact

Deena Thomas at Arbinet:

Phone: 212-230-1200 Fax: 212-921-7667 email: [email protected]

Mr. Yoshio Takasato at ITT:

Phone: 813-5467-5931 Fax: 813-5467-5930