Vonage and Nortel Agree to Settle Patent Dispute

    HOLMDEL, N.J., Dec. 31 /PRNewswire-FirstCall/ -- Vonage and Nortel
 today announced that they have agreed in principle to end the litigation
 pending between them. The contemplated settlement involves a limited cross
 license to three Nortel and three Vonage patents and will not call for any
 monetary payments by any party. Claims relating to past damages and the
 remaining patents will be dismissed without prejudice. The settlement is
 subject to final documentation.
 
     "We are pleased to resolve this issue and enter into a productive
 relationship with Nortel," said Vonage Chief Legal Officer Sharon O'Leary.
 
     About Vonage
 
     Vonage (NYSE:   VG) is a leading provider of digital phone services with
 over 2.5 million subscriber lines. Our award-winning technology enables
 anyone to make and receive phone calls with a touch tone telephone almost
 anywhere a broadband Internet connection is available. We offer
 feature-rich and cost-effective communication services that offer users an
 experience similar to traditional telephone services.
 
     Our Residential Premium Unlimited and Small Business Unlimited calling
 plans offer consumers unlimited local and long distance calling, and
 popular features like call waiting, call forwarding and voicemail -- for
 one low, flat monthly rate. For more information about Vonage's products
 and services, please visit http://www.vonage.com.
 
     Vonage Holdings Corp. is headquartered in Holmdel, New Jersey.
 Vonage(R) is a registered trademark of Vonage Marketing Inc., a subsidiary
 of Vonage Holdings Corp.
 
 
Vg-a

SOURCE Vonage

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