Stockholders of record at the close of business on March 31, 2008 are entitled to attend the 2008 Annual Stockholders' Meeting and vote their shares. In accordance with Vonage's security procedures, all stockholders attending the 2008 Annual Stockholders' Meeting must present an acceptable form of photo identification and proof of share ownership as of the close of business on March 31, 2008.

The new service, called Vonage Broadband, is expected to be offered to new and existing customers by the end of the year. Through this relationship with Covad, Vonage will offer DSL services with maximum download speeds of 3.0 or 6.0 megabits per second to both residential and small business customers. This offering will expand Vonage's competitive position in the marketplace by integrating these services for customers who prefer this option.

HOLMDEL, N.J., May 8, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of broadband telephone service, today announced results for the quarter ended March 31, 2008.

Revenue for the first quarter 2008 grew to a record $225 million, up 15% from $196 million in the first quarter 2007 and up 4% sequentially, driven by an increase in subscriber lines and higher average revenue per user.

The Company intends to use the net proceeds from this financing, plus cash on hand, to repay, tender for or redeem its existing convertible notes, which can be put to the Company on December 16, 2008 and have a principal amount due of approximately $253 million. As of March 31, 2008, the Company had approximately $190 million in cash and cash equivalents of which $42 million was restricted and $148 million was unrestricted.

Management will host a webcast discussion of the quarter's results on Thursday, May 8, 2008 at 10:00 AM Eastern Time. To participate, please dial (877) 419-6594 approximately ten minutes prior to the call. International callers should dial (719) 325-4932. A replay will be available approximately two hours after the conclusion of the call until midnight May 23, 2008, and may be accessed by dialing (888) 203-1112. International callers should dial (719) 457-0820. The replay passcode is: 5532664

The webcast will be broadcast live through Vonage's Investor Relations website at http://ir.vonage.com. Windows Media Player or RealPlayer is required to listen to this webcast. A replay will be available shortly after the live webcast.

"We're pleased to have Jeff join Vonage's Board and believe that his extensive financial experience will be of great value as we transition to an established, profitable enterprise," said Jeffrey Citron, Chairman, Chief Strategist and Interim CEO of Vonage.

Misner currently serves as Chief Financial Officer and Executive Vice President of Continental Airlines Inc. In this role, he is responsible for the airline's overall financial operations, including internal audit, funds, corporate finance, risk management, financial planning, tax, accounting and investor relations. Prior to Continental, Misner was a tax and business consultant, having served as a tax partner with Ernst and Young in Orange County, Calif., and with Kenneth Leventhal and Company in Newport Beach, Calif.

Misner received his bachelor's degree in accounting from San Diego State University, and currently lives in Houston with his wife and three children.

"Russ brings an impressive breadth of product development and engineering experience in the communications sector to the table," said Jeffrey Citron, Chairman, Chief Strategist, and Interim CEO of Vonage. "We believe that he can hit the ground running when it comes to capitalizing on the positive reaction we've seen thus far to the expanding stable of Vonage-branded devices."

Dauer most recently held the title of Vice President, Engineering of the Emerging Technologies Division at Avaya, a global leader focused on communication systems, applications, and services. In this position, he led the newly formed Emerging Technologies R&D Division in the development of strategic technologies and products.

HOLMDEL, N.J., Feb 13, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of broadband telephone service, today announced results for the quarter and year ended December 31, 2007.

Revenue for the fourth quarter 2007 grew to a record $216 million, up 19% from $181 million in the fourth quarter 2006, driven by an increase in subscriber lines.

For the fourth quarter of 2007, the Company reported a GAAP net loss of $11 million or $0.07 per share. Excluding certain charges(2), net loss narrowed to $9 million, or $0.06 per share, down from $65 million reported in the fourth quarter 2006. Adjusted operating income excluding certain charges(1) was $6 million in the quarter, a significant improvement from a loss of $53 million in the year-ago quarter.

Jeffrey Citron, Vonage Chairman, said, "Although 2007 was a difficult period marked by numerous legal challenges, Vonage maintained its focus on improving the business. We improved our marketing efficiency, reduced our cost structure and for the first time in our history, generated positive adjusted operating income in the fourth quarter. Looking to 2008, we are confident in our ability to grow the business profitably and provide customers innovative, feature-rich and cost-effective communications services."

Fourth Quarter 2007 Financial and Operating Highlights

Fourth quarter 2007 revenue grew to $216 million, an increase of 19% from $181 million in the year-ago quarter. The year-over-year increase was driven by growth in subscriber lines.

Average monthly revenue per line in the fourth quarter 2007 was $28.19, down from $28.25 in the year-ago quarter and $28.24 reported in the third quarter 2007. Average monthly telephony services revenue per line for the quarter increased to $27.42, in line with $27.41 reported a year ago and up from $27.32 sequentially.

In the fourth quarter 2007, direct cost of telephony services was $54 million, up from $52 million a year ago and in line with the third quarter 2007. On a per line basis, average direct cost of telephony services fell to $7.11, down from $8.13 in the year ago quarter and $7.30 sequentially as the Company continued to benefit from call routing efficiency and scale.

Direct cost of goods sold for the quarter was $17 million, up from $12 million in the year-ago quarter and in line with the prior quarter. Direct margin(3) increased to 67% of revenues from 65% in the year-ago quarter.

Selling, general and administrative ("SG&A") expense excluding certain charges(4) was $77 million, down from $82 million in the year-ago quarter, and $81 million sequentially.

Pre-marketing operating income excluding certain charges(1) was $81 million, up from $49 million in the year-ago quarter and $71 million sequentially.

Marketing expense for the quarter was $63 million, or 29% of revenue, down sharply from $96 million, or 53% of revenue a year ago. Marketing expense was up slightly from the third quarter 2007. Marketing cost per gross subscriber line addition ("SLAC") was $223 in the fourth quarter 2007. As expected, SLAC increased slightly from $206 in the third quarter due to seasonal costs of advertising. The Company expects the cost of acquisition will be within $225- $250 for 2008.

Vonage added 56,000 net subscriber lines during the quarter to end the year at nearly 2.6 million lines.

Excluding certain charges, adjusted income from operations(1) was $6 million in the fourth quarter 2007, up from a loss of $53 million in the year ago quarter and a loss of $1 million sequentially. The Company generated $3 million in adjusted operating income in the fourth quarter 2007. John Rego, Vonage CFO said, "This is a significant accomplishment for the Company and reflects our ability to grow while effectively managing costs. We reached this milestone ahead of plan, and did so in a turbulent year."

Average monthly customer churn remained flat sequentially at 3.0% in the fourth quarter 2007.

Current cash and marketable securities and restricted cash on December 31, 2007 was $190 million. This includes $39 million in restricted cash used as collateral for routine business operations. The change in cash from the prior quarter was driven by settlement payments of $202 million, capital expenditures of $9 million, cash provided from operations(5) of $15 million and an $8 million increase in restricted cash. This is the second consecutive quarter of positive cash generation from operations.

Year-End 2007 Results

Revenue for 2007 increased to $828 million, up 36% from $607 million in 2006. Adjusted loss from operations excluding certain charges(1) narrowed to $46 million from $238 million in 2006. Net loss excluding certain charges(2) in 2007 narrowed to $90 million from $286 million the prior year. GAAP net loss was $265 million or $1.70 per share in 2007.

Vonage added 356,000 net subscriber lines in 2007 and finished the year with nearly 2.6 million lines in service, 16% above the year-ago level of 2.2 million lines.

Convertible Debt Refinancing Update

Vonage has $253 million in convertible debt, which can be put to the Company in December 2008. The Company with its financial advisors is currently in discussions with several parties regarding a refinancing of the debt. While the result of such discussions cannot be predicted with certainty, Vonage believes that it will be able to resolve its financial issues and meet its obligations. There can be no assurance, however, that Vonage will be able to resolve these issues in the near term. Assuming the Company has no resolution by the time it files its annual report on Form 10-K, the Company expects that its auditors' report on its 2007 financial statements will include an explanatory paragraph regarding the Company's ability to continue as a going concern.

Commenting on Sears' appointment, Vonage Chairman, Chief Strategist, and Interim CEO Jeffrey Citron said, "Mike has an impressive skill set that will enhance Vonage's ability to keep improving our customer service. We believe that Sears' 18-plus years of leadership experience in customer service and operations will build upon the foundation Vonage currently has in place."

Management will host a webcast discussion of the quarter's and full year's results on Wednesday, February 13, 2008 at 10:00 AM Eastern Time. To participate, please dial (877) 548-7903 approximately ten minutes prior to the call. International callers should dial (719) 325-4896. A replay will be available approximately two hours after the conclusion of the call until midnight February 27, 2008, and may be accessed by dialing (888) 203-1112. International callers should dial (719) 457-0820. Replay Passcode: 1142438.

The webcast will be broadcast live through Vonage's Investor Relations website at http://ir.vonage.com. Windows Media Player or RealPlayer is required to listen to this webcast. A replay will be available shortly after the live webcast.