Vonage Holdings Corp. Chief Executive Officer Steps Down -Jeffrey A. Citron Named Interim CEO-

-Broad Restructuring Expected to Yield $140 Million in Savings-

-Hosts Investor Update Conference Call-



    HOLMDEL, N.J., April 12 /PRNewswire-FirstCall/ -- Vonage Holdings Corp.
 (NYSE:   VG), a leading provider of broadband telephone services, today
 announced that Michael Snyder stepped down from his position as Chief
 Executive Officer and resigned from the Company's Board of Directors
 effective April 11, 2007. The Company also announced that Jeffrey A.
 Citron, the Company's Chairman, has been appointed as the Company's interim
 Chief Executive Officer and is expected to serve on a short-term basis. In
 addition, the Company will immediately commence a search for Mr. Snyder's
 replacement.
     Mr. Citron, Vonage Chairman and interim CEO said, "Mike has made
 valuable contributions to the growth of our business and we will miss him.
 We thank him and wish him well in his future endeavors."
     The Company also announced its preliminary estimation of its operating
 and financial results for the quarter ended March 31, 2007:
     -- Total Revenue (in millions):                              $195
     -- Gross Subscriber Line Additions:                          332,000
     -- Net Subscriber Line Additions:                            166,000
     -- Average Monthly Customer Churn:                           2.4%
     -- Marketing Cost per Gross Subscriber Line Addition:        $275
     The Company has not finalized its financial statements for the quarter
 ended March 31, 2007.
     Additionally, Vonage announced cost cutting measures focused on
 reducing the Company's loss from operations. Mr. Citron said, "In order to
 strengthen Vonage's financial position, we are taking a number of measures
 to reduce our costs and operating expenses. We remain focused on improving
 our competitive position in the marketplace."
     Vonage announced plans to reduce its marketing expense by approximately
 $110 million. As a result, the Company expects marketing expenditures of
 roughly $310 million for 2007.
     The Company also announced plans to reduce its G&A by $30 million
 through the remainder of 2007 through consolidation of operations and
 workforce reduction.
     The Company expects its cost cutting measures to enhance shareholder
 value and improve its competitiveness in the marketplace.
     Conference Call and Webcast
     Management will host an investor conference call on Thursday, April 12,
 2007 at 8:00 AM ET to discuss this information and other recent
 developments. To participate, please dial (800) 289-0533 approximately ten
 minutes prior to the call. International callers should dial (913)
 981-5525.
     The webcast will be broadcast live through Vonage's Investor Relations
 website at http://ir.vonage.com. Windows Media Player or RealPlayer is
 required to listen to this webcast. A replay will be available shortly
 after the live webcast and will be available for two weeks.
     Safe Harbor Statement
     This press release contains forward-looking statements regarding
 financial and operating results, the planned reduction in our workforce,
 anticipated SG&A savings in 2007 and marketing expense for 2007. 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; our damaging and disruptive intellectual property and other
 litigation; 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.
     About Vonage
     Vonage (NYSE:   VG) is a leading provider of broadband telephone services
 with 2.4 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.
 
     Vonage Investor Contacts:        Vonage Media Contacts:
 
     Leslie Arena                      Brooke Schulz
     732.203.7372                      732.528.2627
     leslie.arena@vonage.com           brooke.schulz@vonage.com
 
     (vg-f)
 
 

SOURCE Vonage Holdings Corp.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.