[marcelo]

Edison, NJ, February 2, 2004 - Vonage, the broadband phone company, today announced the activation of 100,000 total lines on its network, thus doubling its subscriber-base in less than five months since it reached 50,000 lines in service.

With the addition of more than 15,000 lines to its network during January, Vonage's active line base has reached 100,000, further defining it as the leader in the broadband Internet telephony industry. Over the life of the service more than 130 million calls have been completed across its SIP network and call volume continues to grow at an exponential rate.

"Activating 100,000 broadband telephony lines is a milestone for Vonage and a landmark for the industry," said Jeffrey A. Citron, chairman and CEO of Vonage. "With over 4,000 lines being added every week, the rapid influx of customers is a testament to the validity of broadband telephony and proves that consumers are ready for Vonage's low-cost, flat-rate, feature rich residential and small business calling solutions."

Leveraging the power of customers' existing broadband connections, Vonage sets the standard for the new generation of phone service with the most competitive residential and small business calling plans:

• $14.99/month - Residential Basic Plan - 500 minutes of local, toll and long distance calling throughout the United States and Canada;

• $24.99/month - Residential Unlimited Local Plan - unlimited local calling plus 500 minutes of United States long distance and Canadian calling;

• $34.99/month - Residential Premium Unlimited Plan - unlimited calling throughout the United States and Canada;

• $39.99/month - Small Business Basic Plan - 1500 minutes of calling throughout the United States and Canada, including a free dedicated fax line;

• $49.99/month - Small Business Unlimited Plan - for unlimited calling throughout the United States and Canada, including a free dedicated fax line;

Services and hardware included for free on any of the above plans:

* Voicemail
* Call hunt
* Call waiting
* Call transfer
* Caller ID
* Caller ID block (*67)
* Call forwarding
* International call block
* Motorola VT1000v device
* Area code selection
* Call return (*69)
* Repeat dialing
* Web-based account management
* Bandwidth saver
* Online voicemail retrieval
* Real-time inbound/outbound call record details
* Real-time billing activity
* Great international calling rates:
* Tel Aviv 6 cents per minute
* London 5 cents per minute
* Sydney 6 cents per minute

[b]About Vonage