Vonage Press Release

Vonage® Activates 200,000th Line

First Broadband Telephony Provider to Reach 200,000 Line Milestone

Edison, NJ, July 13, 2004 – Vonage, the leading broadband telephony provider, today announced the activation of 200,000 total lines on its network, doubling its subscriber-base in less than six months since reaching the 100,000 line mark.

“Again, Vonage has set the benchmark, proving its value proposition to a marketplace starved for full-featured, cost-effective alternatives to the incumbent local exchange carriers,” said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation. “We have consistently doubled our customer-base every six months and expect to exceed year end estimates by a wide margin.”

Leveraging the power of customers’ existing broadband connections, Vonage sets the standard for the new generation of phone service with the most competitive residential and small business calling plans:

$14.99/month - Residential Basic Plan – 500 minutes of local, toll and long distance calling throughout the United States and Canada.
$24.99/month - Residential Unlimited Local Plan -unlimited local calling plus 500 minutes of long distance calling throughout the United States and Canada.
$29.99/month - Residential Premium Unlimited Plan -unlimited calling throughout the United States and Canada.
$39.99/month – Small Business Basic Plan – 1500 minutes of calling throughout the United States and Canada, including a free dedicated fax line.
$49.99/month – Small Business Unlimited Plan – unlimited calling throughout the United States and Canada, including a free dedicated fax line.

Services and hardware included for free on any of the above plans:

Voicemail
Call hunt
Call waiting
Call transfer
Caller ID
Caller ID block (*67)
Call forwarding
International call block
Motorola VT1000v device
Area code selection
Call return (*69)
Repeat dialing
Web-based account management:
Online voicemail retrieval
Real-time inbound/outbound call record details
Real-time billing activity

Great international calling rates:

Tel Aviv 4 cents per minute
London 3 cents per minute
Sydney 4 cents per minute

About Vonage®

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 1900 active rate centers in over 125 North American markets. Vonage is sold directly through www.vonage.com and retail partners such as Amazon.com, RadioShack and Circuit City. Wholesale partners such as EarthLink, ARMSTRONG®, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 200,000 lines in service, Vonage continues to add more than 22,000 lines per month to its network. Over 5 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit www.vonage.com or call 1-VONAGE-HELP. Vonage® is a trademark of Vonage Holdings Corp.

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