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Press Release


  STC Associates
  Carolyn Robertson
  212-725-1900 ext. 204
  [email protected]


Arbinet Creates Global Peering Community, Signs Eleven Providers with Over 22 Million Customers

Initiates PeeringSolutions(SM) for Service Providers Columbus Communications Jamaica, nexVortex, Orbitel, Telecom Argentina, Telefonica Argentina, Telefonica Chile, Telefonica Peru, Telmex Chile, Verizon Dominicana, and Two Others

NEW BRUNSWICK, N.J., Sept 12, 2006 – PRNewswire-FirstCall via COMTEX News Network — Arbinet-thexchange, Inc. (Nasdaq: ARBX), the leading provider of solutions to simplify the exchange of digital communications, said eleven providers have joined its global peering community which now includes 80 million numbers and 22 million customers. Operators include Columbus Communications Jamaica, nexVortex, Orbitel, Telecom Argentina, Telefonica Argentina, Telefonica Chile, Telefonica Peru, Telmex Chile and Verizon Dominicana. Arbinet is providing these operators with a new, high margin stream of immediate revenue and automatically enabling all Members of Arbinet’s exchange to peer with these operators through Arbinet’s simple online platform.

Arbinet’s unique solution queries all calls in a market against a SPIDER Registry-supported transaction server and sends calls destined for the customers of a participating operator directly to it with a settlement payment. This direct routing of calls from the originator to the end user customer reduces latency and improves quality for the buying Member and creates a new revenue stream for the terminating operator. For many calls, the operator receives the incoming international termination rate rather than the local in-country interconnect rate. A participant in Arbinet’s global peering community simply connects through a TDM or VoIP interface and Arbinet acts as the hub through which other providers can reach its customers.

Steve Heap, Chief Technology Officer of Arbinet comments, “At its core, peering is the identification and routing of calls directly to a service provider’s customers. Through Arbinet, providers can peer with one another without the complexities of signaling and protocol conversion and international settlement. As each new Member of the community joins, all existing Members immediately and automatically begin peering with that new Member, resulting in enhanced revenue for the sellers and higher quality for the buyer. This is a major step forward in worldwide peering.”

In addition to providing a new revenue stream for these operators, Arbinet’s exchange also converts traffic from VoIP to TDM as necessary to provide a way for VoIP-enabled carriers to reach the operator without the need for short-term investment in VoIP conversion equipment. Arbinet’s ability to seamlessly convert traffic allows a Member to manage its migration from TDM to VoIP without impacting its partners.

Edwin Lara, Account Executive of Verizon Dominicana commented, “We have already started to receive additional traffic through Arbinet. PeeringSolutions allows us to receive calls from other partners directly, with excellent call quality. As this community continues to grow, we will benefit from increased traffic flow and calls from our customers will receive the same high quality in return.”

Curt Hockemeier, President and Chief Executive Officer of Arbinet said, “We are extremely pleased with the rapid progression of this global peering community. This model helps providers generate a new stream of immediate revenue and ease their transition to VoIP peering. Our offering is particularly helpful to retail service providers as it gives them the ability to route calls directly to distant service providers through Arbinet at the highest quality available. We combined the liquidity of Arbinet’s leading electronic communications marketplace with our advanced peering solution to create these advantages.”

About Arbinet

Arbinet solutions simplify the exchange of digital communications in a converging world. These include exchanges, a transaction management platform and managed services which streamline performance and improve profitability for Members.

Arbinet’s 600+ voice and data Members, including all 10 of the world’s 10 largest international carriers, use Arbinet’s Internet based electronic platforms to buy, sell, deliver and settle transactions valued at about $500 million in 2005. These Members include fixed, mobile and VoIP carriers, ISPs and content providers from more than 60 countries who exchange voice, data, content and value added services.

Forward Looking Statement

This press release contains forward-looking statements including statements regarding the Company’s growth, strategic and business plans, product development and service offerings, and future operating results as well as its growth strategies for PeeringSolutions(SM) and its ability to execute on those strategies. Various risks and uncertainties which may cause the Company’s actual results to differ materially from the results indicated by these forward-looking statements are set forth in the Company’s SEC filings. These include: the Company’s revenue growth and losses; ability to attract and maintain members (in particular, significant trading members); ability to successfully introduce new products and services (including data on the exchange, mobile on thexchange services, DirectAxcess(SM) trading service, PrivateExchange(SM), AssuredAxcess(SM), and PeeringSolutions(SM) services); continued volatility in the volume and mix of trading activity (including the average call duration and the mix of geographic markets traded); our uncertain and long member enrollment cycle; the failure to manage our credit risk; pricing pressure; system failures, human error and security breaches which could cause the Company to lose members and expose it to liability; the Company’s ability to attract and maintain key personnel; and the Company’s ability to obtain and enforce patent protection for our methods and technologies.

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

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