Arbinet Expands Infrastructure and Resources in Asia to Serve Market Demand
New Brunswick, New Jersey, USA, September 13, 2005 – Arbinet-thexchange, Inc. [Nasdaq: ARBX], the leading electronic market for trading, routing and settling communications capacity, announced today the expansion of its exchange infrastructure and regional support in Hong Kong to facilitate increased trading for its growing Asian Membership. As part of this initiative, Arbinet has activated a switch in the Sino Favour Center, Hong Kong, allowing Asian exchange Members to seamlessly trade with other world markets without major investments in infrastructure or personnel.
Arbinet’s Membership in Asia includes leading global carriers such as Japan Telecom, KDD, New World Telecommunications, Philippine Long Distance Telephone Company, Reach, SingTel, Smart Telecommunications, Telekom Malaysia and TelstraClear. To date, four of the five largest international carriers in Asia are Arbinet Members.
"The Asia-Pacific region now represents an astounding 41% of the world’s telephony subscribers and it is the fastest growing telecom region," explains Curt Hockemeier, Arbinet President and CEO. "There are tremendous opportunities to capitalize on this growth. Arbinet’s expansion into Hong Kong will give Arbinet a more geographically diverse platform to increase liquidity in these markets and create new buy and sell opportunities for all Members worldwide."
Expected Member benefits from Arbinet’s Hong Kong expansion will include:
The ability to trade with carriers in the US, Europe, Latin America, Africa and the Middle East through a single interconnect with secured settlement to eliminate credit risk
An automated, streamlined way to take advantage of regional pricing opportunities
Arbinet’s DirectAxcess service, which
Allows a buyer to directly interconnect with fixed and mobile operators worldwide and avoid the capital expenditure and lengthy negotiations required for bilateral interconnection
Offers a seller a low-cost, global channel to market premium direct termination on its in-country fixed or mobile network
Arbinet has added resources to its Asian team led by Kenny Wan to support Member trading including Helen Ng, Senior Account Development Manager, who brings more than 10 years of experience in the Asian telecommunications industry.
Arbinet has also doubled capacity between its Hong Kong and Los Angeles exchange delivery points to support trading between Asia and Arbinet’s growing worldwide Membership, which now totals 385.
Arbinet is the leading electronic market for trading, routing and settling communications capacity. Members of the exchange, consisting primarily of communications service providers, buy and sell voice calls and Internet capacity based on route quality and price through its centralized, efficient and liquid marketplace. Members place orders through a web-based interface. Its fully automated, highly scalable trading platform matches these orders using proprietary software and delivers them through state-of-the-art facilities.
This press release contains "forward-looking statements" (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), including statements about the Company’s growth, future operating results, and benefits to our trading members of the addition of the new Hong Kong exchange delivery point, including increased liquidity derived from the additional Hong Kong exchange delivery point. Various important risks and uncertainties may cause the Company’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 (due to, among other things, the lack of a liquid market) or utilizing our new and additional services (including data on thexchange, mobile on thexchange services, and DirectAxcess(SM) trading service); continued volatility in the volume and mix of trading activity (including the average call duration for DirectAxcess(SM) and the mix of geographic markets traded); our uncertain and long member enrollment cycle; our ability to manage our credit risk; our ability to manage our growth; competitive factors; system failures, human error and security breaches could cause the Company to lose members and expose it to liability; future government regulation; and the Company’s ability to obtain and enforce patent protection for our methods and technologies. For a further list and description of the risks and uncertainties the Company faces, please refer to the Company’s annual report on SEC Form 10-K for the fiscal year ending December 31, 2004 and other filings, which have been filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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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.