Vonage(R) Launches Service in Tucson, Arizona

Vonage(R) Launches Service in Tucson, Arizona

Full-Featured Flat-Rate Calling Comes to the Old Pueblo

EDISON, N.J., Dec. 28 -- Vonage Holdings Corp., the leading provider of broadband phone service, today announced local availability of its service in Tucson, Arizona.

High-speed Internet subscribers nestled in the Sonoran Desert can now take advantage of Vonage's broadband phone service offering free unlimited local and long distance calling. Each plan includes the most popular features like call waiting, call forwarding and voicemail for one low, flat monthly rate. Vonage customers in the Old Pueblo can now keep their current numbers or choose telephone numbers within the popular (520) area code.

"Consumers and small businesses in Wildcats territory will no longer fumble when it comes to selecting the best phone service. Vonage has scored a touchdown in Tucson with its inexpensive full-featured phone service," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corp. "Our local presence in the Tucson area gives consumers the option to choose a phone service that provides a great alternative to current high priced traditional Bell providers."

Using the latest technology, Vonage sets the standard for the new generation of phone service with residential and business calling plans:

     *  $14.99/month -- Residential Basic Plan -- 500 minutes of local, toll
        and long distance calling throughout the United States and Canada.

     *  $24.99/month -- Residential Premium Unlimited Plan -- unlimited
        calling throughout the 50 United States and Canada anytime, anywhere.

     *  $39.99/month -- Small Business Basic Plan -- 1500 minutes of calling
        throughout the United States and Canada, including a free dedicated
        fax line.

     *  $49.99/month -- Small Business Unlimited Plan -- unlimited calling
        throughout the United States and Canada, including a free dedicated
        fax line.

    Services and hardware included for free on any of the above plans:

     --  Voicemail                          --  Call hunt
     --  Caller ID                          --  Call transfer
     --  Call waiting                       --  Repeat dialing
     --  Call forwarding                    --  Bandwidth saver
     --  Call return (*69)                  --  Area code selection
     --  Caller ID block (*67)              --  International call block
     --  Web-based account management       --  Linksys RT31P2 Device
           - Real-time billing activity     --  Great international calling
           - Online voicemail retrieval          rates:
           - Real-time inbound/outbound           - Tel Aviv 4 cents per
              call record details                    minute
                                                  - London 3 cents per minute
                                                  - Sydney 4 cents per minute

About Vonage®
Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 2000 active rate centers in over 150 global markets. Vonage is sold directly through Vonage and retail partners such as Amazon.com, RadioShack, Best Buy, Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA. Wholesale partners such as EarthLink, ARMSTRONG®, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 350,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit Vonage or call 1-VONAGE- HELP. Vonage®, Vonage Digital Voice(TM), Toll Free Plus(SM) and Virtual Phone Number(SM) are trademarks of Vonage Holdings Corp.