Vonage Enjoined; Company Expresses Confidence in Obtaining Stay and in Appeal and Ability to Deliver Uninterrupted Service to Customers

Mar 23, 2007, 01:00 ET from Vonage

    HOLMDEL, N.J., March 23 /PRNewswire-FirstCall/ -- The U.S. District
 Court in Alexandria, Va. today issued an order enjoining Vonage from using
 certain VoIP technology named in its patent litigation with Verizon. The
 order is not immediately effective, however, and Vonage is confident its
 customers will see no change in their phone service.
     The court announced its intent to hear stay argument in two weeks'
 time. At that time, the court intends to render a decision regarding the
 stay, as well as making the injunction effective. If the court denies the
 stay, Vonage will seek a stay through appeal from the Federal Court of
 Appeals. Vonage is confident it will be able to obtain a stay through
     "We are confident Vonage customers will not experience service
 interruptions or other changes as a result of this litigation," said Mike
 Snyder, Vonage's chief executive officer.
     The company has drafted its notice of appeal of the March 8 jury
 verdict and will file that notice at the appropriate juncture in the court
     "Our fight is far from over," Snyder said. "We remain confident that
 Vonage has not infringed on any of Verizon's patents - a position we will
 continue vigorously contending in federal appeals court - and that Vonage
 will ultimately prevail in this case."
     Snyder continued, "Despite this obvious attempt by Verizon to cripple
 Vonage, the litigation will not stop Vonage from continuing to provide
 quality VoIP service to our millions of customers."
     "Our appeal centers on erroneous patent claim construction, and we
 remain confident that Vonage has not infringed on any of Verizon's patents
 - a position we will continue to vigorously assert in federal appeals
 court," said Sharon O'Leary, Vonage's executive vice president, chief legal
 officer and secretary. "Vonage relied on open-standard, off-the-shelf
 technology when developing its service. In fact, evidence introduced in
 court failed to prove that Vonage relied on Verizon's VoIP technology, and
 instead showed that in 2003 Verizon began exploring ways to copy Vonage's
 technology," she added.
     The company is focused on growing its business by investing in the
 rollout of new technology and features, and continuing to grow its customer
 base. Vonage's accomplishments continue to validate its business model and
 strategy. The company has achieved 19 consecutive quarters of double-digit
 revenue growth, doubled revenues to $607 million in 2006 alone, and added
 nearly 1 million net subscriber lines last year.
     About Vonage
     Vonage (NYSE:   VG) is a leading provider of broadband telephone services
 with over 2.2 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. Vonage's service is sold on the web and through
 national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc.
 and Target and is available to customers in the U.S., Canada and the United
 Kingdom. 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.
     Safe Harbor Statement
     This press release contains forward-looking statements regarding
 Vonage's financial position. In addition, statements in this press release
 that are not historical facts or information may be forward-looking
 statements. The forward-looking statements in this release are based on
 information available at the time the statements are made and/or
 management's belief as of that time with respect to future events and
 involve risks and uncertainties that could cause actual results and
 outcomes to be materially different. Important factors that could cause
 such differences include, but are not limited to, our history of net
 operating losses and our need for cash to finance our growth; the
 competition we face; our dependence on our customers' existing broadband
 connections; differences between our service and traditional phone
 services, including our 911 service; uncertainties relating to regulation
 of VoIP services; system disruptions or flaws in our technology; our
 ability to manage our growth; the risk that VoIP does not gain broader
 acceptance; and other factors described in the "Risk Factors" section of
 our registration statement on Form S-1, as amended (File No. 333-136773),
 and in our subsequent periodic reports filed with the SEC. While we may
 elect to update forward-looking statements at some point in the future, we
 specifically disclaim any obligation to do so, and therefore, you should
 not rely on these forward- looking statements as representing our views as
 of any date subsequent to today.