VONAGE ANNOUNCES PARTNERSHIP WITH PALTALK

PALTALK to Resell Vonage's Service to its Multi-Million Subscriber Base

Edison, NJ, July 7, 2005 - Vonage, the leading provider of broadband phone service, today announced a partnership with Paltalk to resell broadband telephony service to its subscriber base within the U.S., Canada and the U.K. Paltalk is the largest Instant Chat (IC) community on the Internet with over 3.5 million active members participating in voice and video enabled chat rooms. The Paltalk Messenger allows members to administer their own voice and video conferences and Instant Message (IM) with buddies on MSN, AOL, Yahoo, and ICQ. Vonage will offer Paltalk's subscribers flat rate residential calling plans starting at $14.99 (USD), $19.99 (CAD) and £ 9.99 (GBP).


Paltalk will partner with Vonage to deploy an affordable telephony service to its broadband subscriber base. Subscribers will be offered Vonage's full array of calling plans, which include many of the standard telephony features such as caller ID, call waiting and voicemail and a number of proprietary features at no additional cost. These features include web -based voicemail, area code selection, online account management and bandwidth saver as well as a host of others. Paltalk's customers selecting any of Vonage's calling plans will also benefit from significantly reduced international rates (i.e., London and Hong Kong are 3 cents per minute, Tel Aviv is 4 cents per minute).

"By launching our agreement with Paltalk, Vonage proves the importance of broadband telephony to enhance a Web applications sustainable revenue growth," said Phil Giordano, vice president, Sales and Business Development of Vonage. "Further, Vonage's partnership is designed to allow Paltalk to enhance its offering to its service to better satisfy its customers."

Joel Smernoff, Paltalk's, chief operating officer, announced "we are excited to offer the power of Vonage to Paltalk's members who already enjoy group voice communication."

About Vonage®

Vonage has pioneered the broadband phone industry; setting the standard for pricing, features, call quality and reliability for the entire VoIP category. Vonage's award winning service is sold on the web and through national retailers like SAM's Club, RadioShack, Best Buy, Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA. Vonage Holdings Corporation is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit http://www.vonage.com or call 1 -VONAGE -HELP. Vonage® is a trademark of Vonage Marketing, a subsidiary of Vonage Holdings Corp.

About Paltalk

Paltalk is a privately -held company revolutionizing how people communicate around the world over the Internet. The company is dedicated to providing the best quality video and voice conversations, easiest -to -use product, and the friendliest community among any chat product anywhere.

Paltalk started in early 1998 with a simple goal of providing audio and video messaging. In December 1998, Paltalk was the first company to provide live voice communication coupled with an instant messaging buddy list. This enabled its customers to easily speak with their friends and family anywhere in the world, all for free. Since then, the company has continually added new innovative features including group video sharing, voice conferencing, and file transfers.

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