Creates Global Network Enabling Delivery of Wholesale Voice,
                     IP and Ethernet Solutions

Neutral Tandem, Inc. (Nasdaq:TNDM), a leading provider of
interconnection services, announced today it has entered into an
agreement to acquire Tinet SpA, an Italian based global carrier
exclusively committed to the IP Transit and Ethernet wholesale market.
To acquire Tinet, Neutral Tandem will pay cash consideration of
approximately 74.5 million euros (approximately $94.9 million), which
reflects certain purchase price adjustments, the assumption of
approximately 5.2 million euros in cash (approximately $6.6 million)
and the assumption of approximately 18.2 million euros in long-term
debt (approximately $23.2 million), which will be paid off at closing1.
The combination will immediately expand Neutral Tandem's IP-based
network internationally, enabling global end-to-end delivery of
wholesale Voice, IP and Ethernet solutions. The acquisition, to be
financed by cash from Neutral Tandem's balance sheet, is subject to
various standard closing conditions and is expected to close during the
fourth quarter of 2010. After closing, Tinet will be a wholly owned
subsidiary of Neutral Tandem.

"This acquisition redefines Neutral Tandem from a strictly voice
interconnection company into a global IP-based network services company
focused on delivering global connectivity for a variety of media,
including voice, data and video," said Rian Wren, President and CEO of
Neutral Tandem. "Furthermore, the integration of Tinet's global IP
backbone will help accelerate and expand Neutral Tandem's and Tinet's
Ethernet services. This combination will take our Ethernet eXchange
service global and will position us for delivering cost-effective
wholesale Ethernet interconnectivity solutions end-to-end."

Wren continued, "We were seeking the opportunity to leverage our core
competencies, expand our global footprint, accelerate our Ethernet
initiatives and move beyond voice into data solutions. This acquisition
meets the mark on all of these criteria and enables us to provide three
key services: Voice, IP Transit and Ethernet."

"Tinet is excited to continue to drive the growth of the global
wholesale IP Transit and Ethernet markets under the Neutral Tandem
umbrella," said Paolo Susnik, CEO of Tinet. "We believe that the
combination with Neutral Tandem will provide significant benefits to
the global wholesale communications marketplace. The integration of our
networks will provide customers greater access points to buy and sell
Ethernet services and will add further value to our IP Transit
proposition."

The proposed acquisition is subject to customary closing conditions,
and is expected to close during the fourth quarter of 2010. The
transaction will also be subject to standard post-closing adjustments.
Neutral Tandem expects the transaction to be immediately accretive to
earnings per share in 2010, and anticipates providing updated financial
guidance following the closing in conjunction with the Neutral Tandem
third quarter 2010 earnings release. Oppenheimer & Co. Inc. served as
financial advisers and Baker & McKenzie LLP served as legal advisers to
Neutral Tandem on this transaction. Compass Rondelli Advisers served as
financial advisers and RDRB Associati and Dewey LeBouef LLP served as
legal advisers to the sellers.

Conference Call & Web Cast

Neutral Tandem will hold a conference call to discuss the acquisition
on September 10, 2010 at 9:00 a.m. (ET). A live web cast of the
conference call, as well as a replay, will be available online on the
company's corporate web site at www.neutraltandem.com. Participants can
also access the call by dialing 877-941-0843 (within the United States
and Canada), or 480-629-9643 (international callers). A replay of the
call will be available approximately two hours after the call has ended
and will be available until 11:59 p.m. (ET) on October 10th, 2010. To
access the replay, dial 800-406-7325 (within the United States and
Canada), or 303-590-3030 (international callers) and enter the
conference ID number: 4363554#.

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical fact, included in this press release regarding
Neutral Tandem's strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and
objectives of management are forward-looking statements. The words
"anticipates," "believes," "expects," "estimates," "projects," "plans,"
"intends," "may," "will," "would," and similar expressions are intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Neutral
Tandem may not actually achieve the plans, intentions or expectations
disclosed in its forward-looking statements. Actual results or events
could differ materially from the plans, intentions and expectations
disclosed in the forward-looking statements Neutral Tandem makes.
Factors that might cause such differences include, but are not limited
to: the possibility that the expected efficiencies and cost savings
from the proposed acquisition will not be realized, or will not be
realized within the expected time period; the ability to obtain any
necessary or desirable approvals of the acquisition on the proposed
terms and schedule contemplated by the parties; the risk that our
business and the Tinet business will not be integrated successfully;
disruption from the proposed acquisition making it more difficult to
maintain business and operational relationships; the risk that the
proposed acquisition does not close, including, but not limited to, due
to the failure to satisfy the closing conditions; currency fluctuations
before the closing date causing an increase in the U.S. dollar value of
the purchase price payable at closing; risks associated with our
ability to successfully develop and market Ethernet interconnection
services, including but not limited to identifying, obtaining,
operating and maintaining attractive network switch sites, equipment
and software, cost estimation errors or overruns, interconnection
delays, material delays or shortages, our inability to obtain necessary
third party rights or permits on a timely basis, if at all, and other
factors, including the impact of regulation, many of which are beyond
our control and all of which could delay or negatively affect our
ability to offer or market this new service; and other important
factors included in Neutral Tandem's reports filed with the Securities
and Exchange Commission, particularly in the "Risk Factors" section of
Neutral Tandem's Annual Report on Form 10-K for the period ended
December 31, 2009, Quarterly Report on Form 10-Q for the quarter ended
March 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended
June 30, 2010, as such Risk Factors may be updated from time to time in
subsequent reports. Neutral Tandem does not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.

About Neutral Tandem, Inc.

Headquartered in Chicago, Neutral Tandem, Inc. is a leading provider of
tandem interconnection services to wireless, wireline, cable and
broadband telephony companies. As of June 30, 2010, Neutral Tandem was
capable of connecting approximately 500 million telephone numbers
assigned to carriers in the United States. Neutral Tandem's solutions
include both voice and Ethernet interconnection services. Neutral
Tandem's solutions build redundancy, security and operational
efficiencies into the nation's telecommunications infrastructure.
Neutral Tandem announced plans to launch 14 Ethernet eXchanges by year
end 2010. Please visit Neutral Tandem's website at:
www.neutraltandem.com

The Neutral Tandem, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3797

About Tinet:

Tinet, formerly the carrier arm of Tiscali Group, is a global carrier
exclusively committed to the IP and Ethernet wholesale market. With
network presence and customers in EMEA, Americas and APAC, Tinet
provides global IP Transit and Ethernet connectivity to Carriers,
Service and Content Providers worldwide, The carrier guarantees
customers proactive management of SLAs and protection from DoS attacks.
Established in 2002, Tinet's unique business model, based on focus and
simplicity, assures the delivery of the highest standard of service.
Tinet has grown to become one of the top 10 global IPv4 backbones and
the number one IPv6 network worldwide. For more information on Tinet,
please visit www.tinet.net.

The Tinet logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7984

1Conversion to dollars based on an exchange rate on September 8, 2010
of EURO1 = $1.2733.


CONTACT:  Jaymie Scotto & Associates
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          Neutral Tandem
          INVESTOR CONTACT:
          Jim Polson
          1-866-268-4744