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Vonage Comments on Verizon Patent Litigation

HOLMDEL, N.J., Feb 26, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- In the last week, several media reports have inaccurately speculated on the outcome and impact that Verizon's patent litigation now being heard in U.S. District Court in Alexandria, Va. would have on Vonage's business.

These same media reports overlooked Vonage's strong balance sheet and contingency plans for maintaining uninterrupted operations.

"It is wrong and irresponsible to presuppose either the outcome or the impact this litigation would have on our business," said Mike Snyder, Vonage's chief executive officer. "First and foremost, we are confident we have not infringed on any of Verizon's patents and, in any case, we believe the Verizon patents are invalid."

Snyder continued, "Nevertheless, our financial reserves would allow us to continue normal operations regardless of the outcome. In addition, we are confident that regardless of how this litigation is ultimately decided, Vonage's customers will see no change whatsoever to any aspect of their phone service."

Vonage intends to vigorously fight this frivolous lawsuit and expects to win. The company is confident it will be vindicated and, in the process, Verizon's lawsuit will be exposed as a transparent attempt to stifle one of its most successful competitors.

As the leading provider of broadband telephone services in the U.S. and based on Vonage's current financial position it is well positioned for future growth and success. Vonage's accomplishments in the past year continue to validate our business strategy and the strength of the company. These include:

     -- 19 consecutive quarters of double digit revenue growth;
     -- Doubled revenues to $607 million in 2006 alone; and
     -- Adding nearly 1 million net subscribers and growing.

    About Vonage

Vonage (NYSE: VG) is a leading provider of broadband telephone services with over 2.2 million subscriber lines. Our award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. We offer feature-rich and cost-effective communication services that offer users an experience similar to traditional telephone services.

Our Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail -- for one low, flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. For more information about Vonage's products and services, please visit http://www.vonage.com.

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage(R) is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.


    (Vg-a)


Safe Harbor Statement

This press release contains forward-looking statements regarding Vonage's financial position. In addition, statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to, our history of net operating losses and our need for cash to finance our growth; the competition we face; our dependence on our customers' existing broadband connections; differences between our service and traditional phone services, including our 911 service; uncertainties relating to regulation of VoIP services; system disruptions or flaws in our technology; our ability to manage our growth; the risk that VoIP does not gain broader acceptance; and other factors described in the "Risk Factors" section of our registration statement on Form S-1, as amended (File No. 333-136773), and in our subsequent periodic reports filed with the SEC. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, and therefore, you should not rely on these forward- looking statements as representing our views as of any date subsequent to today.

SOURCE Vonage

Brooke Schulz of Vonage, +1-732-528-2627, brooke.schulz@vonage.com; or Nick Kalm of
Reputation Partners, +1-312-222- 9888, nick@reputationpartners.com
http://www.vonage.com

Copyright (C) 2007 PR Newswire. All rights reserved

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