Vonage expressed the utmost confidence in the following:

— Vonage is not going out of business.
— There will be no loss of service to our customers.
— Our customers will experience no change in their phone service.

In the unlikely event the monetary award ($58 million) and royalties are ultimately upheld/paid, they will not jeopardize Vonage’s financial position as we focus on achieving profitability. Vonage is equipped to handle these costs, while still running our business as we always have.

“We are confident in Vonage’s future health, growth prospects and longevity,” said Jeffrey R. Citron, Vonage’s chairman and chief strategist.

If the judge issues an injunction, Vonage is confident it will be able to successfully stay it and are equally confident in the strength of our appeal.

As the leading provider of broadband telephone services in the U.S., and based on Vonage’s current financial position, the company is well positioned for future growth and success. Vonage’s accomplishments in the past year continue to validate our business strategy and the strength of the company. These include:

— 19 consecutive quarters of double digit revenue growth;
— Doubled revenues to $607 million in 2006 alone; and
— Adding nearly 1 million net subscribers and growing.