Vonage Becomes First Broadband Telephony Provider to Activate 50,000 Lines

Vonage Continues to Lead the Broadband Telephony Industry as it Reaches the Milestone of 50,000 Consumer and Small Business Lines in Service

Edison, NJ, September 23, 2003 - Vonage, the broadband phone company, today announces the activation of 50,000 total lines on its network.


With the addition of more than 2,000 lines to its network every week, Vonage's active line base has reached 50,000, further defining it as the leader in the broadband Internet telephony industry. Vonage's call volume has recently hit 60 million completed calls across its SIP network and continues to grow at an exponential rate. This represents over half of all broadband telephone lines and calling activity nationwide, according to a June 2003 Merrill Lynch report. Consumers and small businesses are increasingly looking to Vonage as their broadband alternative to traditional telephone service.

"Activating 50,000 Broadband telephony lines is a milestone for Vonage and a milestone for the industry," said Jeffrey A. Citron, chairman and CEO of Vonage. "With over 2,000 lines being activated and over 2.5 million calls being completed through our network every week, Vonage is demonstrating the viability of broadband telephony and the demand for our affordable unlimited calling plans, flat -rate pricing and unique features."

Using the latest technology, Vonage Digital VoiceSM sets the standard for the new generation of phone service with residential and business calling plans:

o Residential Premium Unlimited Plan - $34.99/month for unlimited calling throughout the United States and Canada.

o Residential Unlimited Local Plan - $24.99/month for unlimited local calling plus 500 minutes of United States long distance and Canadian calling.

o Small Business Unlimited Plan - $49.99/month for unlimited calling throughout the United States and Canada, including a free dedicated fax line.

o Small Business Basic Plan - $39.99/month for 1500 minutes of calling throughout the United States and Canada, including a free dedicated fax line.

o Services and hardware included for free in all Vonage Digital VoiceSM plans:

- Voicemail
- Caller ID
- Call waiting
- Call forwarding
- Call transfer
- Call hunt
- Call return (*69)
- Caller ID block (*67)
- Repeat dialing
- Area code selection
- International call block
- Bandwidth saver
- Web -based account management, voicemail retrieval and real -time inbound/outbound calling activity
- International calling at significantly reduced rates, such as:

* London 5 cents per minute
* Tel Aviv 6 cents per minute
* Sydney 6 cents per minute

About Vonage(r)

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in the US, Vonage's service area encompasses more than 1500 active rate centers in 100 US markets. Sold directly through www.vonage.com, retail partners such as Amazon.com. Wholesale partners such as EarthLink, ARMSTRONG(r), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. Vonage currently has more than 50,000 lines in service. Over 2.5 million calls per week are made using Digital Voice, 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(r), Vonage Digital VoiceSM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

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