ARBX Arbinet Corp. (MM)

On February 28, 2008, the Company issued a press release announcing, among other things, that its Board of Directors declared a special one-time cash distribution in the amount of $0.40 per share on its common stock, par value $0.001, to be paid on March 28, 2008 to the holders of record as of the close of business on March 12, 2008. The special cash distribution replaces the Company’s existing $15.0 million stock repurchase plan, previously announced by the Company in the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 12, 2007, under which the Company repurchased approximately 835,000 shares. The stock repurchase plan has been terminated.

On February 28, 2008, the Company also announced that it is exploring strategic alternatives for Broad Street Digital Limited (formerly known as Flowphonics, Ltd.) and expects to divest the business in the second quarter of 2008.

A copy of the press release regarding, among other matters, the matters disclosed in this Item 8.01, is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

This Form 8-K contains forward-looking statements regarding anticipated future revenues, growth, capital expenditures, management’s future expansion plans, expected product and service developments or enhancements, and future operating results. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as: “believes,” “expects,” “may,” “will,” “should” or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. 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: the ability of Arbinet to effectively divest Broad Street Digital Limited; members (in particular, significant trading members) not trading on our exchange or utilizing our new and additional services (including DirectAxcess ^SM , PrivateExchange ^SM , AssuredAxcess ^SM and PeeringSolutions ^SM ); continued volatility in the volume and mix of trading activity; our uncertain and long member enrollment cycle; the failure to manage our credit risk; failure to manage our growth; pricing pressure; investment in our management team and investments in our personnel; regulatory uncertainty, system failures, human error and security breaches that could cause Arbinet to lose members and expose it to liability; and Arbinet’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 16, 2007, and other filings that have been filed with the Securities and Exchange Commission. Arbinet assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise and such statements are current only as of the date they are made.