Business Editors/Hi-Tech Writers

PRINCETON, N.J. & SANTIAGO, Chile--(BUSINESS WIRE)--March 20, 2001

ITXC Corp (NASDAQ:ITXC), the leading provider of worldwide Internet voice services, and Carrier 116, one of Chile's first competitive carriers, today announced that Carrier 116 is using ITXC.net(SM), the largest global network for voice on the Internet, to deliver international phone-to-phone traffic.

As one of the first Latin American countries to deregulate, Chile has many carriers who are able to provide telephony services to its more than 15 million residents. Carrier 116 is leading the way by delivering voice on the Internet services to its customers.

By connecting its switch to ITXC-owned and operated Internet telephony gateway equipment, co-located at its premises, Carrier 116 now has immediate access to ITXC.net and additional routing options to destinations in 78 countries around the world.

The relationship enables ITXC to expand its footprint in Latin America, an important market as evidenced by ITXC's 1999 to 2000 traffic growth of 828% to the region.

Originating voice on the Internet traffic from the carrier's premises provides a competitive advantage to both ITXC and its carrier customers by eliminating both the costs and provisioning delays associated with traditional backhaul.

The Internet increases the advantage even further by extending ITXC.net closer to the call destination - that is, terminating calls in the central offices of carriers - often just one local loop away from the call's receiver.

"Our relationship with ITXC allows us to take advantage of the benefits of Internet telephony without the capital or manpower costs usually associated with a cutting edge technology," stated Michael Alter, CEO of Carrier 116. "We are very pleased to be working with ITXC because, like us, they are dedicated professionals who understand the need for achieving competitive pricing without sacrificing quality."

Since 1998, ITXC.net has carried more than one billion minutes of voice traffic. ITXC's proprietary BestValue Routing(TM) technology, which routes calls around Internet congestion, enables the company to offer its customers carrier-grade quality with Internet economics.

"By connecting to ITXC.net, Carrier 116 is receiving the benefits of voice on the Internet today while preparing for the inevitable convergence of voice and data on one network. I believe all voice calls will be on the Internet by 2010," said Tom Evslin, Chairman and CEO of ITXC Corp, "We are pleased to see Carrier 116 has taken an early lead and are proud that they named ITXC as their first provider for voice on the Internet services."

About Carrier 116:

Chilean-based Heilsberg S.A. operates as a carrier in Chile as Carrier 116 for national and international long distance telephone services. Heilsberg also has a license in Peru where it will shortly begin operating as a carrier for national and international long distance telephone services.

Heilsberg will have a license in Argentina and will begin operating during Q2 of this year as a carrier for national and international long distance telephone services and is in the process of obtaining a license to begin service in Bolivia in November 2001.

About ITXC:

ITXC Corp (NASDAQ:ITXC) established and operates ITXC.net(SM), the largest global network for voice on the Internet with 360 points of presence in more than 197 cities and 78 countries. The company is the leading provider of worldwide Internet voice services with more than one billion minutes of use since the inception of ITXC.net in 1998.

ITXC's patent-pending BestValue Routing(TM) technology provides such high voice quality over the Internet that tier one carriers use ITXC for worldwide phone-to-phone traffic without indicating that the calls are actually going over the Internet.

Customers include major traditional carriers and RBOCs who achieve lower costs for phone-to-phone calls while maintaining carrier quality, Web merchants who increase sales with Push to Talk buttons on websites and email, Internet-based Web-to-phone providers and voice portals, as well as carriers and ISPs providing Web-based call management including Internet call waiting.

ITXC recently received the World Communication Award for 2000 as the Best Wholesale Carrier (a category which included major traditional carriers as well) and was named the second fastest growing technology company in the US over the last three years by Deloitte & Touche. For more information, see www.itxc.com.

Forward looking statements: ITXC may not meet the projections reflected in its forward looking statements due to numerous risks and uncertainties, including, among other factors, the volatile and competitive environment for Internet telephony, changes in domestic and foreign economic, market, and regulatory conditions and other risks detailed in ITXC's reports filed from time to time with the SEC.

ITXC is a registered trademark of ITXC Corp. ITXC.net and BestValue Routing are service marks and trademarks of ITXC Corp. All other trademarks mentioned in this document are the property of their respective owners.

www.itxc.com