VONAGE® TO SELL ITS SERVICE ON BUY.COM® THE INTERNET SUPERSTORE

Offering its Service on One of the Nation`s Leading Electronics E-Commerce Retailers Gives Consumers More Options When Seeking a Flat-Rate Calling Plan

Edison, N.J. & Aliso Viejo, C.A., October 19, 2004 - Vonage Holdings Corp., the leading broadband phone company, today announced Buy.com, the Internet Superstore will sell its services on its Website, www.buy.com. Vonage is pleased to offer its industry transforming calling plans on the nation's leading electronics E -commerce site.


High -speed Internet customers who have a standard telephone can sign up for Vonage's service by purchasing one of two starter kits from Buy.com, both featuring Linksys devices. Either device will allow customers to make unlimited calls in the U.S. and Canada for $24.99 per month. The Linksys RT31P2 will be available at $79.99 and the PAP2 will be available at $48.99. After rebates the RT31P2 is $39.99 and the PAP2 is $8.99.

Consumers can also purchase Vonage's $14.99 Residential Basic 500 Plan. Also available are its two small business plans, which both offer a free dedicated fax line. The Small Business Basic Plan, $39.99 offers 1500 minutes of calling throughout the U.S. and Canada and the Small Business Unlimited Plan, $49.99 offers unlimited U.S. and Canadian calling.

"Buy.com's marketing of Vonage's service is evidence of the transformation of the telecommunications industry and the need to make broadband telephony more readily available to the general consumer market," stated Daniel Elwell, director of New Business Development of the Retail Sales Channel for Vonage. "Further, Vonage's service marketed on Buy.com now offers consumers another outlet to purchase services from North America's leading broadband telephony company."

"With the Linksys Voice over IP products and the Vonage service, consumers can get more out of their high -speed Internet connection," said Mike Wagner, director of marketing for Linksys. "Buy.com has been a leading Linksys reseller for years, and we are certain that this affordable, feature -packed application will appeal greatly to their customers."

"Buy.com's customers are savvy, early -adopters of new technologies," stated Scott Reedy, VP of Sales & Merchandising for Buy.com's technology stores. "Voice over IP and Internet calling will become one of the fastest growing new technologies in the next few years. Vonage and Linksys are the two industry leaders right now and we are really pleased that we are able to put this unique opportunity to offer our customers access to low -cost, broadband phone service. The interest and growth in this space will be tremendous. Buy.com will seek to be a leader in offering the best Internet calling programs. This new partnership is great example."

What is Broadband Phone Service?

Broadband phone service works by turning voice calls into data packets and sending them over the Internet. When the data packets approach their destination, they are reassembled, and delivered in the form of a traditional call. Vonage customers require only a high -speed Internet connection, a Linksys VoIP terminal adapter or router and a regular home telephone to utilize the service.

The company offers rate plans, ranging from $14.99 for residential customers to $49.99 for small businesses. All rate plans include a full set of features, including caller ID, call waiting, voicemail, call forwarding, and emergency calling service. In addition, Vonage offers a number of enhanced voicemail and area code selection features:

Voicemail: Vonage offers three options for checking voicemail: you can dial into a menu and listen over the phone; listen to voicemail online, or listen to voicemail in your email box (a .wav file will be sent to your account).

Area Code Selection: Vonage customers can choose any area code, regardless of location.

Vonage's technology offers substantial benefits to customers, including:

Huge cost savings

Increased functionality

Improved call quality

Free calls to other Vonage subscribers

Improvements in employee productivity and mobility

Service portability, wherever broadband is available

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 1950 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, Fry's Electronics 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 300,000 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 Buy.com®

Buy.com, The Internet Superstore(tm), offers its over 7 million customers more than 2 million products in a range of categories including computer hardware and software, electronics, cellular products and services, music and music downloads at 256k, DVDs, books, toys and more. Individuals and businesses can shop quickly and easily at Buy.com 24 hours a day, 7 days a week. Buy.com was named one of the Top 50 web sites in 2002 and 2003 by Internet Retailer, the top performing site on Gomez Inc.'s E -Holiday Shopping 2002 Index in the music, electronics and books category (December 2002), "Best Overall Place To Buy Mobile Devices" (January 2002), "Best E -Commerce Site" by PC World magazine (June 2001), "Best Overall Place To Buy" by Computer Shopper Magazine (January 2001), a "Best of the Web" in the computer and electronics category by Forbes Magazine (spring 2000 and fall 2000), and the No. 1 electronics e -tailer in the PowerRankings by Forrester Research, Inc. (November 2000). Buy.com, founded in June 1997, is located in Aliso Viejo, California. For more information, visit www.buy.com. Buy.com® and The Internet Superstore(tm) are trademarks of Buy.com, Inc.

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