-- Company Announces Plans for Comprehensive Refinancing --
-- Adjusted EBITDA(1) of $35 Million --
-- Net Income of $8 Million or $0.04 per Share Excluding Adjustments(2) --
-- Company Reports Revenue of $214 Million --

HOLMDEL, N.J., Nov. 3, 2010 /PRNewswire-FirstCall/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of communications services connecting individuals and social networks through broadband devices worldwide, announced plans for a complete refinancing of its existing term loans and results for the third quarter ended September 30, 2010.

Through the refinancing, all of the company's existing term debt, totaling $194 million will be replaced with a term loan facility with an interest rate expected to be less than half the blended rate of the current debt. The Company plans to raise approximately $200 million of new financing.

This transaction will result in a more efficient capital structure with the following expected characteristics: total leverage at or below 1.5 times debt to EBITDA, liquidity of $55 million in cash, and earnings accretion in the first year of at least 40% due to the lower interest rates on the new debt. In addition, the terms of the new loan are expected to contain far fewer restrictive covenants than the existing debt providing the Company with greater flexibility to operate and grow its business.

On November 2, 2010, the Company entered into definitive agreements with respect to refinancing its existing debt. The Company plans to exercise its right to retire the first lien debt under the make-whole provisions of the credit agreement and retire the second lien debt at a discount of more than 25% to the contractual make-whole amount. The third lien notes will be converted into 8.3 million shares of the Company's common stock. In addition, the third lien noteholders will receive a cash payment of $2.2 million plus accrued interest of $1.1 million. The terms of the agreements also provide for certain fees to be paid to the debt holders.

The Company plans to finance this transaction with the expected $200 million pre-payable, senior secured term loan debt and cash from its balance sheet. It plans to immediately start the process of raising the required financing with the objective of completing the entire transaction prior to December 31, 2010. Actual timing and the successful completion of the refinancing are subject to market conditions.

Marc Lefar, Vonage Chief Executive Officer, said, "Today's announcement of this global refinancing marks a major milestone in the continued transformation of our company. In many ways, it is the culmination of the significant and sustained improvements we've achieved in our operating performance over the past two years. With the stabilization of our customer base, our strong cash flow and a transformed capital structure, we have a very strong platform on which we can continue to build the future of Vonage."

HOLMDEL, N.J., Oct 13, 2010 /PRNewswire via COMTEX News Network/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of affordable communications services enabling individuals and social networks to connect through any broadband device worldwide, will report its financial results for the third quarter ended September 30, 2010 on Wednesday, November 3, 2010. The earnings release will be available on Vonage's Investor Relations website at ir.vonage.com.

Management will host a webcast discussion of the quarter's results on Wednesday, November 3, 2010 at 10:00 AM Eastern Time. To participate, please dial (877) 359-9508 approximately ten minutes prior to the call. International callers should dial (224) 357-2393. A replay will be available approximately two hours after the conclusion of the call until midnight November 16, 2010, and may be accessed by dialing (800) 642-1687. International callers should dial (706) 645-9291. The replay passcode is: 16391586.