Vonage® Completes 40 Million Calls Over its SIP Network

Call Volume Jumps From 25 Million to 40 Million in Less Than 60 Days

Edison, NJ, July 25, 2003 - Vonage, the leading provider of broadband telephony, today announced the completion of more than 40 million calls over its Session Initiation Protocol (SIP) network.

In less than 60 days, Vonage's total call volume has grown from 25 million to 40 million calls. With more than 38,000 customers, Vonage currently completes about 2 million calls per week, further establishing itself as the clear industry leader. Consumers and businesses nationwide are choosing Vonage's feature -rich service and flat -rate prices for unlimited calling throughout the entire U.S. and Canada as a replacement for traditional telephone service.

"The rapid increase in calling volume and the rapid growth of our customer base highlight the reliability of the Vonage network and its service offering," said Jeffrey A. Citron, chairman & CEO of Vonage. "Our call volume increases at an exponential rate as we see a more widespread adoption of Vonage service. In addition, our current customers are using their Vonage phone lines more and more - some of which are choosing Vonage as their primary phone line and dropping their traditional landline telephone service altogether."

Using the latest technology, Vonage Digital Voice(tm) sets the standard for the new generation of phone service with residential and business calling plans:

o Residential Premium Unlimited Plan - only $39.99/month. Customers can call anywhere in the United States, including Hawaii and Alaska, for one low monthly charge.

o Residential Unlimited Local Plan - $25.99/month for unlimited local and regional calling plus 500 minutes of long distance calling.

o Small Business Unlimited Plan - $49.99/month for unlimited business calling phone service, including free fax line.

o Small Business Basic Plan - $39.99/month for 1500 minutes of nationwide calling, $0.049 per minute overage, including free fax line.

o Services and hardware included in all Vonage Digital Voice plans:

- Voicemail
- Caller ID
- Call waiting
- Call forwarding
- Call hunt
- Call transfer
- Call return (*69)
- Caller ID block (*67)
- Repeat dialing
- Area code selection
- International call block
- Bandwidth saver
- Web -based account management, voicemail retrieval and real -time inbound/outbound calling activity
- International calling at significantly reduced rates:

* London 5 cents a minute
* Tel Aviv 6 cents a minute
* Sydney 6 cents a 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 the US, Vonage's service area encompasses more than 1000 active rate centers in 81 US markets. Sold directly through www.vonage.com, retail partners such as Amazon.com and wholesale partners such as ARMSTRONG® and Advanced Cable Communications, Vonage currently has more than 38,000 lines in service. Over 2 million calls per week are made using Digital Voice, 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 VoiceSM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

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