Vonage 2Q08 Update

• Added 2,000 net subscriber lines in the 2Q08 and finished the quarter with more than 2.6 million lines in service.

• Average monthly customer churn declined to 3.0% in the 2nd quarter 2008 from 3.3% in the first quarter 2008.

• Marketing cost of customer acquisition: $283 per customer. Total marketing costs during the quarter: $65 million.

• 2Q08 revenues $228 million, up 11% from $206 million in the 2Q07 and up 1% sequentially. Net loss $7 million.

• ARPU: $29.04 up from $28.85 in 1Q08.

• Current cash and marketable securities and restricted cash at quarter end was $192 million.