VONAGE® AND LINKSYS® TEAM UP TO REDEFINE THE TELECOMMUNICATIONS MARKETPLACE

Capitalizing on Linksys` Retail Strength and Brand Awareness, Vonage Expands Device Options for Consumers

Edison, NJ, and Irvine, CA August 24, 2004 - Vonage, the leading broadband phone company and Linksys, a division of Cisco Systems, Inc. today announced a relationship that will redefine the way consumers and small businesses communicate. Vonage will now be offering its broadband telephony service for use with two different Linksys Voice over IP (VoIP) devices to meet the ever -growing broadband communications marketplace.


Customers can now choose products for their home or small business broadband telephony needs with a number of Linksys options that fit their requirements. Vonage subscribers will be offered a choice of the Linksys (PAP2) Phone Adapter with 2 Phone Ports or the (RT31P2) Broadband Router with 2 Phone Ports. In a few weeks, Linksys will also make available a Wireless -G Router with 2 phone ports (WRT54GP2).

"Linksys' retail channel strength and leadership in broadband networking solutions hardware development makes it an ideal partner as Vonage continues to redefine the standard for home and small business telephone service," stated Jeffrey A. Citron, chairman and CEO of Vonage. "We are very excited about the opportunity to now offer our customers the advantage of receiving their equipment from a company such as Linksys, which is known for its high -level performance and reliability."

The Vonage and Linksys relationship enables consumers and small businesses to easily set up a high -quality feature -rich phone service via their broadband connection, at significantly reduced rates in comparison to traditional telephone service. Further, this collaboration offers retailers a ground -breaking opportunity to increase sales and expand into a new category, capitalizing on Vonage's leadership in broadband telephony and Linksys' retail strength in home and broadband networking solutions.

"Linksys is utilizing Cisco's leadership, experience and R&D in VoIP to bring this fast growing technology to consumers and small office environments everywhere," said Charlie Giancarlo, President of Cisco -Linksys. "Teaming with Vonage will enable Linksys to expand the audience for its products while helping us to achieve our goal of bringing new, IP -based communications and entertainment services and applications into the home."

Both the Linksys Phone Adapter (PAP2) and Broadband Router with Voice (RT31P2) are equipped with two standard telephone jacks, support session initiation protocol (SIP), and are compatible with a cable or DSL high -speed Internet connection. Both devices have Web -based configuration through a built -in web server, offer high quality, clear sounding voice service and are compatible with all common telephone features: caller ID, call waiting, voicemail, etc. The RT31P2 Broadband Router features three 10/100 BaseT Ethernet ports, supports advanced security management functions for port filtering, MAC address filtering, DMZ hosting and Quality of Service (QoS) to ensure best voice quality. The router also supports Universal Plug -and Play for easy set up and can act as a DHCP server.

"Together, Vonage and Linksys offer everything a customer needs to make high -quality, inexpensive phone calls," said Jeffrey Citron.

Availability

Customers can sign up for Vonage phone service and purchase the Linksys VoIP devices at www.vonage.com or by calling 1 -VONAGE -HELP. The Linksys Phone Adapter with 2 Phone Ports (PAP2) and the Linksys Broadband Router with 2 -Phone Ports (RT31P2) bundled with Vonage phone service offerings are immediately available at select retailers throughout the United States. The Wireless -G Router with 2 Phone Ports will be available in a few weeks.

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, Circuit City, Staples and Office Depot. 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 235,000 lines in service, Vonage continues to add more than 25,000 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.

About Linksys®

Founded in 1988, Linksys, a division of Cisco Systems, Inc. (NASDAQ: CSCO) is the global leader in Wireless and Ethernet networking for consumer and SOHO users. Linksys is dedicated to making networking easy and affordable for its customers, offering innovative, award -winning products that seamlessly integrate with a variety of devices and applications. Linksys provides 24/7 Grade "A" product support to all its customers. For more information, visit the Linksys web site at www.linksys.com. Linksys is a registered trademark of Cisco Systems, Inc.

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