TelecomClick: Vonage Completes $12MM in Initial Financing

AT NEW YORK Vonage Completes $12MM in Initial Financing EDISON, N.J.--(BUSINESS WIRE)--May 2, 2001--Vonage, a leading Voip communications concern announced today that it has secured $12MM in its initial round of financing. Prominent Angel investors participated in this round, which was not open to financial institutions. Proceeds will be used to complete the development and launch phases of Vonage's SIP-based, Voip communications services. "Support from top-level investors, especially in today's bearish economy is a strong indication that Vonage's strategy and technology are on the right track," said Jeffrey Citron, Vonage's CEO. "SIP is to communications that which HTTP was to the Internet, and like Netscape's leadership in the Internet sector, Vonage intends to exploit SIP to redefine communications." Carlos Bhola, Vonage's President added, "a number of stars are lining up to allow us to deliver on the Internet's promise. The rise of Vonage and its peers could result in the creation of substantial market value." Director of Vonage and Voip visionary Jeff Pulver noted, "SIP has allowed Vonage to mature rapidly and this is a leading representation that Voip is finally taking off. This financing further enables Vonage to take full advantage of this attractive market opportunity." About Vonage Vonage is redefining communications by delivering feature-rich, cost-effective, SIP-based Voip solutions, wrapped in a compelling customer care experience. Vonage delivers alternative line services to consumers, and integrated voice and data services to SMEs. Vonage's solutions are deployed almost entirely through its partners. Vonage was founded by Jeffrey Citron, Carlos Bhola, and Jeff Pulver. Jeffrey Citron is Founder and former CEO of Datek Online, the fourth largest on-line brokerage services concern in the U.S., and Island ECN, the second largest global financial service exchange.

Carlos Bhola was Global Head of the Internet/Electronic Commerce investment banking within the Credit Suisse First Boston Technology Group, and headed the Internet/EC initiatives at the Boston Consulting Group. Jeff Pulver has more than a decade of experience in Voip communications, and is one of the true pioneers of Internet Telephony. Jeff is the producer for Voice on the Net (VON) trade shows and co-founded VON Coalition in 1994. His expertise is utilized throughout the telecommunications industry and by the FCC and other regulatory bodies.