Vonage Expands Service in North Carolina

"With Vonage's greater expansion into the Old North State, we now offer residents of North Carolina more options, including greater area code selection and an increased ability to localize or keep their own phone number when they sign up for Vonage's feature-rich, flat-rate calling plans," said Michael Tribolet, president of Vonage America Inc. "We're providing more consumers in North Carolina locales broadband telephone service plans that include unlimited calling throughout the U.S., Canada, Puerto Rico, France, Ireland, Italy, Spain and the UK that includes all the features they need to let them communicate how and when they want. Unlike traditional carriers, Vonage allows its customers to take control of their phone service by offering them the ability to personally manage the way they make and receive their calls, whether they are home or on the go."

Utilizing its innovative technology, Vonage sets the standard for the new generation of phone service with residential and business calling plans: *

    Vonage pricing plans and features

    -- $14.99/month - Residential Basic 500 Minutes Plan - 500 minutes of
       local, toll and long distance calling throughout the 50 United States,
       Canada and Puerto Rico.

    -- $24.99/month - Residential Premium Unlimited Plan - unlimited calling
       throughout the 50 United States, Canada, Puerto Rico, France, Ireland,
       Italy, Spain and the U.K., anytime, anywhere.

    -- $39.99/month - Small Business Basic 1500 Minutes Plan - 1500 minutes of
       calling throughout the 50 United States, Canada and Puerto Rico,
       including a dedicated fax line.

    -- $49.99/month - Small Business Unlimited Plan - unlimited calling
       throughout the 50 United States, Canada, Puerto Rico, France, Ireland,
       Italy, Spain and the U.K., including a dedicated fax line.

    -- Features included at no additional charge in all Vonage plans:

       - Voicemail

       - Caller ID

       - Call waiting Call forwarding

       - Call hunt

       - Call transfer

       - Call return (*69)

       - Caller ID block (*67)

       - Repeat dialing

       - Area code selection

       - Number mobility

       - Bandwidth saver

       - Web-based account management

       - Voicemail retrieval and real-time inbound/outbound calling activity

       - International calling at significantly reduced rates
         > Tel Aviv 5 cents a minute
         > Hong Kong 4 cents a minute
         > Sydney 5 cents a minute

    Vg-a

* Vonage 911 service operates differently than traditional 911. See http://www.vonage.com/911 for details. Monthly rates exclude fees for activation, premium services, regulatory recovery fees & taxes. International calls are billed per minute. First Month Free offer only available for the $24.99 Unlimited Plan and covers only the monthly cost of the plan, other charges & taxes may apply. Credit card & high-speed Internet req'd. Other restrictions may apply. See http://www.Vonage.com for complete Terms of Service & details.

About Vonage

Vonage is a leading provider of broadband telephone services with over 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® is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.