Vonage(R) Announces Partnership with Viseon to Develop Videophone Service

This unique collaboration will target both consumers and small businesses, enabling them to make videophone calls and to visually communicate with anyone, anywhere in the world.

EDISON, N.J. - -Dec. 9, 2004 - -Vonage Holdings Corp., the leading provider of broadband telephony in North America and Viseon (OTCBB:VSNI - News) today announced a relationship teaming two industry innovators that will combine Vonage's award -winning service with Viseon's next generation broadband video telephone.


This unique collaboration will target both consumers and small businesses, enabling them to make videophone calls and to visually communicate with anyone, anywhere in the world. In addition to video, the development deal will allow Vonage® to provide a set of features never before available to consumers. The phones are expected to be offered at www.vonage.com and at over 7,000 retail/e -tail locations nationwide.

"Vonage is pleased to partner with Viseon to develop this first -of -a -kind videophone service. Our ability to offer both consumers and small businesses the opportunity to make video calls is another enhancement to the way people make phone calls," stated Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corp. "More importantly, this service will allow Vonage Small Business customers to benefit from corporate quality videoconferencing and will make calls more meaningful when friends, family and relatives can communicate in real time, whether they are across town or across the country."

John Harris, president and CEO of Viseon, Inc. commented: "This relationship will finally provide consumers with a next generation telephone that can take full advantage of the features available from broadband phone service. The phone we will be offering in partnership with Vonage is different from anything else available today."

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 2000 active rate centers in over 130 global markets. Vonage is sold directly through www.vonage.com and retail partners such as SAM's Club, 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 30,000 lines per month to its network. Over 10 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 Voice(TM), Toll Free Plus(SM) and Virtual Phone Number(SM) are trademarks of Vonage Holdings Corp.

About the VisiFone and VisiFone II
The VisiFone is the world's first consumer broadband videophone, which is in use at companies, governments and educational institutions in the U.S. and abroad. Viseon's VisiFone II, which will launch in Q1 of 2005, is a next generation consumer communication device, which provides multiple features now made possible by the widespread availability of broadband access. The VisiFone II has been designed with input from the major consumer VOIP marketers to enhance the consumer VOIP experience and enable the development of a wide range of revenue generating options for carriers.

About Viseon
Viseon has been developing, manufacturing and patenting video communication technologies for use by corporations, universities and government agencies since 1994. Its products have been sold under various brand names around the world including Philips, Canon, VTEL and Gentner. Viseon has announced a strategy to deliver TV -quality broadband videophones to consumers directly and through relationships with broadband and VOIP providers. Viseon currently owns U.S. patent numbers 5,802,281, 6,073,192, 6,397,275, 6,519,662 and number 6,654,825. Viseon also holds patents in 18 European and Asian countries and has additional patents pending.

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