Vonage 4Q07 Update

• Added 56,000 net subscriber lines during the quarter to end the year at nearly 2.6 million lines.
• Lost 230k customers during the quarter. Average monthly customer churn during the quarter stood at 3%
• Marketing cost of customer acquisition: $223 per customer. Total marketing costs during the quarter: $63 million.
• IP litigation costs during the quarter were $1.3m compared to $133m in the previous quarter
• 4Q07 revenues $216 million, 2% increase q-o-q and 19% increase y-o-y. Net loss $9 million
• ARPU: $28.19 down from $28.24 in 3Q07.
• Current cash and marketable securities and restricted cash at quarter end was $190 million.