VONAGE DIGITALVOICE GOES DIRECT; "CALLS" ON INTER/MEDIA ADVERTISING TO LAUNCH TV CAMPAIGN

Agency's Campaign for Fast Growing Broadband Phone Company Marks the First DRTV Effort in its Market Segment

ENCINO, CA, January 15, 2002 – Vonage DigitalVoice, one of the nation's fastest growing providers of phone service over broadband, will launch its first direct response TV advertising campaign beginning January 27. The effort, handled by Inter/Media Advertising, is poised to be the first DRTV thrust in Vonage's market segment.

California-based Inter/Media was selected by Vonage, which is headquartered in Edison, New Jersey, over R.J. Palmer (New York), A. Eicoff (Chicago), Horizon Media (New York) and NexGen Media (New York). Inter/Media is a fully integrated media and advertising company that uniquely blends direct response advertising with general market techniques.

"We picked Inter/Media because the company is skilled and passionate about direct response TV," said Dean Harris, Vonage's Vice President of Marketing. "The Principals demonstrated a clear understanding of the value of short-form media, and provided a very well-thought out media plan that makes them an excellentpartner for Vonage in this venture."

Vonage, which is marketing to both consumers and small businesses, has completed more than 5 million calls over its network since launching the service in April of 2002. The company competes against a number of other new providers in the emerging Voice-over-Internet-Protocol (VoIP) category, but primarily views its competitors as the traditional local and long distance phone giants.

Sold directly to consumers and small businesses through www.vonage.com and select resellers, Vonage enables customers to use their existing telephone to make high-quality calls to any telephone in the world over any high-speed Internet connection. Simple and easy to use, Vonage offers free unlimited local and long distance calling including the most popular features for a flat monthly rate.

Using the latest technology, Vonage DigitalVoice sets the standard for the new generation of phone service with residential and business calling plans that include--at no additional cost: voicemail, caller ID, call waiting, call forwarding, call transfer, call return (*69), caller ID block (*67), repeat dialing, any area code selection, international call block, bandwidth saver, Web-based account management, voicemail retrieval and real-time inbound/outbound calling activity. International calling is provided at significantly reduced rates.

Vonage has developed the creative for its ad campaign in-house, but Inter/Media will shepherd all of the strategic planning, research, direct response media buying, traffic and tracking. For tracking, Inter/Media will employ its proprietary and precedent-setting lead/sales tracking system AccuTrak^® which is able to identify and attribute individual customer calls to specific media, thus maximizing media buying efficiencies on a daily or weekly basis. AccuTrak^® will allow Vonage to use a toll-free vanity number  (1-877-4-Vonage) and still track the origin of all incoming calls. Research shows that a nationwide vanity number can increase sales by as much as 40% or more.

The 30 and 60-second spots, which feature testimonials from satisfied Vonage customers, will air on national cable, network TV, syndicated programming and local broadcast stations.

"Vonage is astutely using short-form DRTV for marketing--what many of the other technology and dot.com companies should have been doing before the fallout," said Robert Yallen, President of Inter/Media. "If those companies had used direct response TV to sell and brand their products instead of blandishing vast amounts of money on concept advertising, I believe many would still be in business today. The dot.coms were paradigm direct response advertisers, yet they spent their vast amounts of venture capital money recklessly with no regard to media optimization.

"Vonage is betting its media buying budget on a proven strategy that can be tracked and optimized to increase sales. Inter/Media is pleased to be able to provide the experience and expertise to guide Vonage on 'making the right calls.'"

About Inter/Media Advertising:
Inter/Media Advertising is a fully integrated advertising agency that uniquely blends direct response advertising with general market techniques. Founded in 1974 and recognized as a major force in the direct response advertising industry, Inter/Media also specializes in retail brand building and advertising support. Inter/Media's proprietary and precedent-setting lead/sales tracking system AccuTrack^® provides clients with statistical data on the specific origin of each customer call, enabling clients to maximize the value of vanity phone numbers. The company has four divisions--Inter/Media Advertising (strategy, planning and research), Inter/Media Time Buying, Inter/Image Productions, Inter/Post Productions--which operate interactively to service client needs. For more information, go to http://www.Intermedia-Advertising.com.

About Vonage:
Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. Offering more than 100 area codes in 20 of the top 50 media markets nationwide, Vonage offers an easy-to-use product with the most popular features and unlimited local and long distance calling for a flat rate. With 675+ active rate centers, Vonage is the fastest growing digital telephony company in the US. Utilizing proprietary technology, subscribers use a high-speed Internet connection and a standard telephone to make calls anywhere in the world. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit www.vonage.com or call 1-VONAGE-HELP. Vonage DigitalVoice^SM is a service mark of Vonage Holdings Corp.