Vonage 1Q08 Update

• Added 30,000 net subscriber lines in the 1Q08 and finished the quarter with more than 2.6 million lines in service

• Average monthly customer churn increased to 3.3% in the first quarter 2008 from 3.0% in the fourth quarter 2007.

• Marketing cost of customer acquisition: $216 per customer. Total marketing costs during the quarter: $61 million.
• 1Q08 revenues $225 million, up 15% from $196 million in the 1Q07 and up 4% sequentially. Net loss $9 million

• ARPU: $28.85 up from $28.19 in 4Q07.

• Current cash and marketable securities and restricted cash at quarter end was $190 million.