Vonage® Suggested Retail Price Now $79.99 at Retail

Vonage is now sold in over 5,000 top consumer electronics retailers including Best Buy, Circuit City, Fry's and RadioShack

Edison, NJ, June 2, 2004 - Vonage, the leading broadband telephony provider, today announced its Suggested Retail Price (SRP) at Best Buy, Circuit City, Fry's and RadioShack is now $79.99. Customers also receive a $50 mail -in -rebate, making the total price only $29.99 when purchased at any of the 5,000 plus retailers selling Vonage.

"Vonage's suggested retail price change is indicative of Vonage's goal to pass its savings along to its customers, as we have now reached the point where we can reduce costs," stated Matthew Deatrick, vice president, Retail Channel Sales for Vonage. "We are looking forward to huge sales growth with several of the nation's top consumer electronics retailers, while demonstrating the value of broadband phone service to an untapped market segment. "

Using the latest technology, Vonage's retail customer offering includes the following:

o Vonage self -installation kit priced at $79.99 including (1) Motorola VT1005v, (1) Ethernet cable and (1) 5V -DC power adapter and (1) welcome kit

o All customers receive a $50 mail -in -rebate

o Total cost after mail -in rebate: $29.99

Customers purchasing Vonage at a retail outlet are free to choose any of the following plans:

o $14.99/month - Residential Basic Plan - 500 minutes of local, toll and long distance calling throughout the United States and Canada.

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

o $29.99/month - Residential Premium Unlimited Plan - unlimited calling throughout the United States and Canada.

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

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

o 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

· Call return (*69)
Area code selection

· Web -based account management
Repeat dialing

o Online voicemail retrieval

o Real -time inbound/outbound

call record details

o Real -time billing activity
Bandwidth saver
· Great international calling rates:

o Tel Aviv 4 cents per minute

o London 3 cents per minute

o 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, Best Buy 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 165,000 lines in service, Vonage continues to add more than 20,000 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®, Vonage Digital VoiceTM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

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