Vonage announces results for the quarter ended September 30, 2008.

For the third quarter of 2008, adjusted operating income was $15 million, an increase from an adjusted operating loss excluding certain charges of $1 million in the year-ago quarter and adjusted operating income of $12 million sequentially. The Company reported a GAAP net loss of $8 million or $0.05 per share, compared to a net loss excluding certain charges of $12 million or $0.08 per share reported in the third quarter 2007.

Vonage announced on October 24, 2008 the Company received notification from the New York Stock Exchange that the Company had fallen below the continued listing standard, which requires a minimum average closing price of $1.00 per share over 30 consecutive trading days.

The Company has a period of six months, subject to possible extension, to bring its average share price back above $1.00. Under the NYSE rules, the Company's common stock will continue to be listed on the NYSE during the cure period, subject to the Company's compliance with other NYSE continued listing requirements. The Company plans to notify the NYSE that it intends to cure the deficiency.

Vonage was recently granted approval by the U.S. Patent and Trademark Office for an internally developed patent, called "Method and Apparatus for Enhanced Internet Telephony." The invention, which was filed for patent in 2003, makes it less likely for customers to encounter dropped calls, incomplete attempted calls or other communication problems resulting from typical router function and behavior.

Vonage has appointed Marc Lefar Chief Executive Officer of Vonage. Lefar replaces Interim CEO Jeffrey Citron, who had assumed the additional role in April of 2007. Citron will assume the role of non-executive Chairman of the Board and serve as a consultant on long-term strategy.

"I believe there is no better person than Marc to lead Vonage at this time. He possesses a wealth of telecom experience and a strong mix of strategy, finance and operating skills. His marketing expertise is second to none," said Citron. "The Board believes he will bring a fresh perspective to addressing the opportunities and challenges ahead and will help the Company to realize future growth and profitability."

Vonage launched its Vonage Pro, a digital voice offering featuring five innovative components that keep you connected to your home life while on the go, including the ability for customers to use their home phone number virtually anywhere they have access to a high speed Internet connection. Vonage Pro is the next step in the MyVonage product strategy, which is focused on developing products and services based on the requests of customers who have a wide variety of lifestyles and communication needs.

Vonage Pro features five components that specifically accommodate the lifestyle of "prosumers," or professional consumers who are comfortable with and understand the benefits of using technology to improve their personal and professional lives.

Vonage has recently received approval of its first internally developed patent, called "Method and Apparatus for Placing a Long Distance Call Based on a Virtual Phone Number." The invention allows customers to use a virtual number to contact parties at distant locations without incurring long distance charges.

"This is a major milestone for Vonage as we continue to keep innovation at the heart of our corporate value system," said Jeffrey Citron, Vonage Chairman, Chief Strategist and Interim CEO. "We are pleased to have secured this patent, and the depth of talent and creativity here at Vonage that it reflects."

Comcast and Vonage announce a collaborative agreement to address the reasonable network management of Internet services. Comcast committed to work together with Vonage to ensure that network management techniques are chosen that effectively balance the need to avoid network congestion with the need to ensure that over-the-top VoIP services like Vonage work well for consumers.

Vonage hails the United States House of Representatives' passage of the New and Emerging Technologies 911 Improvement Act of 2008. This new act grants long awaited rights and protection to VoIP service providers to interconnect to the traditional 911 network operated by incumbent telephone providers.

"Vonage is grateful for the many efforts in Congress to make this legislation a priority. It helps consumers, Public Safety and Vonage support the best possible emergency solution," said Jeffrey Citron, Chairman, Chief Strategist, and Interim CEO of Vonage. "With over 98% of our subscriber's lines with access to E911, Congress has provided additional tools, leadership and encouragement to get all parties to work together."

Five9 announces that VoIP provider Vonage deployed its Virtual Call Center offering in several divisions to manage marketing campaigns. With a history of subscriber growth and nearly 2.6 million lines in service, Vonage continually evaluates and employs new tools for customer retention and satisfaction initiatives. Five9’s predictive dialing and outbound solutions were deployed quickly and flexibly to align with the telecommunications provider‘s aggressive goals for customer outreach.

Vonage announces results for the quarter ended March 31, 2008. Revenue for the first quarter 2008 grew to a record $225 million, up 15% from $196 million in the first quarter 2007 and up 4% sequentially, driven by an increase in subscriber lines and higher average revenue per user.

For the first quarter of 2008, the Company reported a GAAP net loss of $9 million or $0.06 per share, down from a loss of $72 million or $0.47 per share reported in the first quarter 2007. Adjusted operating income was $8 million in the quarter, a significant improvement from an adjusted operating loss of $58 million in the year-ago quarter and adjusted operating income of $3 million sequentially.

A judge ruled in Vonage's favor barring the Nebraska Public Service Commissions from collecting a state service fee. This court order is the latest victory for Vonage in its fight to keep its customers from having to pay into state Universal Service Funds. The funds would help help subsidize phone and Internet services to poor and rural areas, schools and libraries.

In a lawsuit filed in U.S. District Court, Vonage said other courts have sided with them in allowing Vonage to not pay regulations and fees.

U.S. District Court Judge Laurie Smith Camp of Lincoln agreed and ruled that the Public Service Commission cannot collect the fees from Vonage.

Vonage has asked a federal court to prevent the state from forcing it and its customers to pay a state telephone fee.

In a lawsuit recently filed in U.S. District Court, Vonage says the Nebraska Public Service Commission and its officials should not force it to pay into the state's Universal Service Fund.

"These defendants know that Vonage's service is subject to exclusive federal regulatory jurisdiction, yet they are attempting to compel Vonage to pay a state-law surcharge for the Nebraska Service Fund in violation of the United States Constitution, the Communications Act of 1934 and the Telecommunications Act of 1996," the complaint reads.

Traditional phone companies pay into a Universal Service Fund. But VoIP providers say they provide an information service rather than a telecommunications service.

So what's your take--should Vonage have to pay into the Universal Service Fund just as traditional telephone companies do?

And even more to the root of the issue, is Vonage an information service or telecommunications service?

As previously announced on January 7, 2008, Jeffrey A. Citron, Chairman and Chief Strategist of Vonage will participate in the Citi 18th Annual Global Entertainment, Media & Telecommunications Conference being held today. At the conference, Mr. Citron will announce the following preliminary unaudited financial and operating information about Vonage's recently completed quarter and year ended December 31, 2007:

• Vonage's 2007 revenue will be more than $800 million
• Fourth quarter 2007 churn will show no meaningful change over the 3.0% reported the prior quarter
• Excluding payments made in connection with the settlement of intellectual property litigation which Vonage believes is not indicative of its core operating results for the quarter, Vonage expects to generate positive operating cash for the quarter ended December 31, 2007(1)
• Vonage's cash position at December 31, 2007 was $190 million, which includes $40 million in restricted cash

In June 2006, Verizon brought a lawsuit against Vonage to enforce several Verizon patents relating to Voice over Internet Protocol (VoIP) services.

In March 2007, a jury held that Vonage is infringing three valid Verizon patents. The jury awarded $58 million in damages. The trial judge subsequently issued an injunction which was stayed pending Vonage's appeal.

In September 2007, the U.S. Court of Appeals for the Federal Circuit upheld the trial court's decisions on infringement, validity, and injunction as to two of the Verizon patents (the '574 and '711) and remanded as to the third patent (the '880). Vonage filed a petition for rehearing which is pending in the Court of Appeals.

Today the parties have agreed to resolve the patent lawsuit. The terms of the resolution depend on how the Court of Appeals decides Vonage's pending petition for rehearing regarding two of the Verizon patents (the '574 and '711). If Vonage wins rehearing on either the '574 or '711 patent or if the injunction is vacated as to the '574 or '711 patent, Vonage will pay Verizon $80 million. If Vonage does not win rehearing on either the '574 or '711 patent, or if the stay is lifted reinstating the injunction, Vonage will pay Verizon $117.5 million.

The parties are pleased to have resolved this matter.

Sipera VIPER Lab disclosed multiple threat advisories for users of VoIP services and equipment from Vonage, Globe7 and Grandstream. Among other threats, unwitting VoIP users face eavesdropping, spam, spoofing and denial-of-service (DoS) attacks. Full details on these vulnerabilities are posted as an educational security service to Sipera's customers and the general public at http://www.sipera.com/viper.