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Vonage Selects Texas Instruments as its Preferred Provider for VoIP Silicon

Vonage Press Releases

Texas Instruments Selected by Vonage(r) as its Preferred Provider for Voip Silicon and Software Agreement with Biggest Broadband Telephony Provider Solidifies TI's Position as Top Supplier of Voip Technology, Shipping More than 100 Million Ports Worldwide

SAN JOSE, Calif. (March 7, 2005) - Texas Instruments Incorporated (TI) [NYSE:TXN] and Vonage, the leading broadband phone company, today
announced that Vonage has selected TI as its preferred provider of Voice
over IP (VoIP) silicon and software. This agreement between the two
companies encourages Voip equipment manufacturers to use TI's Voip
silicon and software technology when developing products for use on
Vonage's broadband telephony network. TI has been supplying solutions to
the IP telephony industry since its inception and has shipped over 100
million Voip ports to date for the IP phone, customer premise equipment
(CPE) gateway, and high-density infrastructure markets.

"TI is a great partner and has helped Vonage become the largest provider
of broadband telephony, and this partnership will continue to drive
consumers to switch from the traditional PSTN service to broadband
telephony," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings
Corporation. "We recognize that TI's Voip software and chips are the
best available and recommend that products used on our network
incorporate TI's field-proven technology. This will help us deliver to
our customers the highest quality and most advanced Voip solutions,
spurring faster Voip adoption rates and further validating the market."

TI and Vonage have worked together over the last year to develop Voip
products compatible with the Vonage network and enhance its software
offering to create new Voip services. At last month's Consumer
Electronics Show (CES) in Las Vegas, the companies announced joint
collaboration on the development of two new Voip devices, including a
VoIP-enabled videophone from Viseon and a cordless broadband telephone
system from VTech. Both devices are compatible on Vonage's network and
incorporate TI's Voip software and silicon and are expected to be
available later this year.

"Vonage's impressive worldwide network handles more than 25 million
calls a week, the majority of which are powered by TI's Voip
technology," said Bill Simmelink, general manager of TI's Voip business
unit. "TI shipped 50 million Voip ports through 2003 and doubled that
figure in the last year alone, becoming the first company to reach the
milestone of shipping over 100 million Voip ports, demonstrating the
explosive growth of VoIP. Together with Vonage we are on track to
deliver the benefits of broadband telephony to millions of consumers,
building on our leadership and technology innovations in VoIP."TI holds
the largest share of the Voip CPE market and has provided technology for
more than 80 percent of all residential and enterprise Voip gateways.
The company also leads in shipments of high-density Voip infrastructure
solutions, owning 80 percent market share. TI ships its IP phone
technology to four of the top five manufacturers, and, as the
predominant supplier to the largest provider, owns a majority share of
the IP phone segment. Products incorporating TI's technology are
deployed by service providers throughout the world and power billions of
minutes of Voip calls every month.

"TI is effectively the only vendor that competes in all three Voip
market segments - CPE, IP phones and high-density infrastructure - and
has amassed an impressive roster of manufacturing and service provider
customers," said Sam Lucero, industry analyst at In-Stat. "The company
has been developing technology for the Voip industry since the early
1990s and we believe that TI has garnered a majority share of the
overall Voip IC market."

Texas Instruments Broadband Solutions
For OEMs developing broadband communications solutions, TI's advanced
signal processing-based silicon and software platforms deliver the
optimal performance, lower power consumption, and system-level
integration required to rapidly deploy differentiated next-generation
products for cable modems, digital subscriber line (xDSL) modems,
integrated access devices (IADs), Voice over Internet Protocol (VoIP)
gateways, carrier infrastructure, and home and office wireless
networking. See

About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog
technologies to meet our customers' real world signal processing
requirements. In addition to Semiconductor, the company's businesses
include Sensors & Controls, and Educational & Productivity Solutions. TI
is headquartered in Dallas, Texas, and has manufacturing, design or
sales operations in more than 25 countries.
Texas Instruments is traded on the New York Stock Exchange under the
symbol TXN. More information is located on the World Wide Web at

About Vonage(r)
The fastest growing telephony company in North America, Vonage is
redefining communications by offering consumers and small businesses an
affordable alternative to traditional telephone service. Vonage has
pioneered the broadband phone industry setting the standard for pricing,
features, call quality and reliability for the entire Voip category.
With more than 500,000 lines in service, Vonage continues to add more
than 15,000 lines per week to its network. Over 25 million calls per
week are made using Vonage, the easy-to-use, feature-rich, flat rate
phone service. Vonage's award winning service is sold on the web and
through national retailers like SAM's Club, RadioShack, Best Buy,
Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA.
Vonage Holdings Corporation is headquartered in Edison, New Jersey. For
more information about Vonage's products and services, please visit or call 1-VONAGE-HELP. Vonage(r) is a trademark of Vonage
Holdings Corp

Safe Harbor Statement
Statements contained in this press release regarding the Voip market and
other statements of management's beliefs, goals and expectations may be
considered "forward-looking statements" as that term is defined in the
Private Securities Litigation Reform Act of 1995, and are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements. The
following factors and the factors discussed in TI's most recent Form
10-K could cause actual results to differ materially from the statements
contained in this press release: actual market growth, customer demand.
We disclaim any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of this
press release.

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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See for details.

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