Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Arbinet-Thexchange, Inc.

If you wish to serve as lead plaintiff, you must move the Court nolater than 60 days from today. If you wish to discuss this action orhave any questions concerning this notice or your rights or interests,please contact plaintiff's counsel, Samuel H. Rudman or David A.Rosenfeld of Lerach Coughlin at 800/449-4900 or 619/231-1058 or viae-mail at wsl@lerachlaw.com. If you are a member of this class, youcan view a copy of the complaint as filed or join this class actiononline at http://www.lerachlaw.com/cases/arbinet/. Any member of thepurported class may move the Court to serve as lead plaintiff throughcounsel of their choice, or may choose to do nothing and remain anabsent class member.

The complaint charges Arbinet and certain of its officers,directors and underwriters with violations of the Securities Act of1933. Arbinet is the leading electronic market for trading, routingand settling communications capacity.

The complaint alleges that, in connection with the Company's IPO,defendants issued a materially false and misleading RegistrationStatement and Prospectus (the "Registration Statement"). Specifically,the Registration Statement failed to adequately disclose andmisrepresented material information concerning, among other things:(i) the negative impact that certain factors, including, but notlimited to, increases in wireless calls and shifts in the geographicmarket usage mix, would have on Arbinet's revenues and profits; (ii)the relevance of certain statistical data; and (iii) certain othermaterial risks the Company faced which would negatively impact itsfuture growth and revenues.

On May 4, 2005, Arbinet announced its results for the firstquarter of 2005, the three months ended March 31, 2005 and reportedthat its results were "flat" compared to the fourth quarter of 2004.Then, on June 21, 2005, Arbinet forecast greatly reduced results forthe second quarter of 2005, the three months ending June 30, 2005. Asalleged in the complaint, Arbinet finally owned up to the truematerial facts that drive its business, fee revenues and profits -information that had been concealed until this point by defendants.Following the June 21, 2005 disclosures, the price of Arbinet's commonstock fell by more than 20%.

Plaintiff seeks to recover damages on behalf of all purchasers ofArbinet common stock who purchased their shares pursuant or traceableto Arbinet's December 16, 2004 IPO. The plaintiff is represented byLerach Coughlin, which has expertise in prosecuting investor classactions and extensive experience in actions involving financial fraud.

Lerach Coughlin, a 150-lawyer firm with offices in San Diego, SanFrancisco, Los Angeles, New York, Boca Raton, Washington, D.C.,Houston, Philadelphia and Seattle, is active in major litigationspending in federal and state courts throughout the United States andhas taken a leading role in many important actions on behalf ofdefrauded investors, consumers, and companies, as well as victims ofhuman rights violations. Lerach Coughlin lawyers have been responsiblefor more than $20 billion in aggregate recoveries. The Lerach CoughlinWeb site (http://www.lerachlaw.com) has more information about thefirm.