Texas Instruments and Vonage Collaborate on Broadband Telephony Solutions

Companies Join Forces to Facilitate Development of Low Cost, Feature Rich VoIP Devices Compatible with Fast Growing Vonage Network

LAS VEGAS (Jan. 9, 2004) - Texas Instruments Incorporated (TI) (NYSE:TXN), and Vonage, the leading provider of broadband telephony services, announced today that they are working together to provide VoIP equipment designers and manufacturers new opportunities for the development and deployment of VoIP products compatible with the Vonage telephony network. Vonage has selected TI as its technology partner to enhance its current software offering and evolve new VoIP services leveraging TI's market -leading VoIP technology. TI's VoIP solutions are used in over 80 percent of the VoIP gateway and IP phone products in use or in development today.

The combination of TI's VoIP software and silicon technology and Vonage's broadband telephony software will enable VoIP equipment designers to rapidly develop high -quality, feature -rich devices for their customers. This alliance will spur the creation of new devices for consumers and small businesses to use in managing their voice services through WiFi, cable or DSL connection - - at substantial savings over traditional phone service.

"This alliance between two VoIP leaders will spur the introduction of the newest, most advanced VoIP -enabled devices in the world. TI brings to the partnership their technological prowess in the system -on -a -chip space while Vonage offers TI practical, service provider knowledge and certification processes," said Jeffrey A. Citron, chairman and CEO of Vonage. "New Vonage -enabled devices will be in the hands of consumers faster due to this collaboration. These devices will serve as the backbone for the telecommunications revolution by combining multiple communications technologies into one device thus enhancing the array of features and broadening usability." The combined innovations of TI and Vonage further legitimize the VoIP market and make it easier for consumers to benefit from broadband voice services. TI, which has been supplying solutions to the IP telephony industry since its inception, is the leading provider of VoIP solutions. According to an In -Stat/MDR November 2003 report, TI currently holds roughly 80 percent of the total VoIP integrated circuit (IC) shipment volume for the IP phone, CPE gateway and infrastructure gateway segments of the market. With more than 3,000 lines being added to its network every week, Vonage is the fastest growing telephony company in the United States, logging more than four million calls per week.

"We believe this alliance will facilitate the creation of high quality VoIP products compatible with the Vonage network, making it easier than ever for consumers and small businesses to benefit from the cost savings and new features afforded by VoIP," said Bill Simmelink, general manager, TI's VoIP business unit. "At this critical point in the market, we are pleased to be working closely with Vonage to expand the options for customers who are eager to utilize and benefit from broadband telephony."

Texas Instruments Broadband Solutions For OEMs developing broadband communications solutions, TI's advanced signal processing -based silicon and software platforms deliver the optimal performance, lower power consumption, and system -level integration required to rapidly deploy differentiated next -generation products for cable modems, digital subscriber line (xDSL) modems, integrated access devices (IADs), Voice over Internet Protocol (VoIP) gateways, carrier infrastructure, and home and office wireless networking. See www.ti.com/broadband.

About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries. Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.

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 the US, Vonage's service area encompasses more than 1900 active rate centers in over 100 US markets. Vonage is sold directly through www.vonage.com and retail partners such as Amazon.com. 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 90,000 lines in service, Vonage continues to add more than 10,000 lines per month to its network. Over 4 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®, Vonage Digital VoiceSM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

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