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First of all, thank you for being a loyal Vonage customer. We are committed to you and providing innovative, quality phone service. We continue to believe strongly in the consumer's right to have a choice. You may have heard that Verizon is suing us over patents they say we violated. We are very pleased to announce a significant victory in this legal battle with Verizon. On April 24th, the U.S. Court of Appeals for the Federal Circuit in Washington D.C. issued Vonage a permanent stay of a previous court's injunction that would have barred Vonage from signing up new customers. The ruling by the appellate court is a huge win for you and for future digital phone customers just like you. Since the day we opened our doors, our mission has been to provide consumers with an alternative to the services offered by entrenched landline phone providers. In our five short years, we've gone head-to-head with many of these industry giants, and amassed 2.4 million subscriber lines with our innovative technology, cool features and value pricing. Verizon has chosen to attack Vonage in the courts and threaten consumers' freedom to choose. Could it be about the money? In a truly fair, free market economy, neither Verizon — nor anyone else — should be able to cripple or eliminate companies seeking to provide more (and better) alternatives. Vonage firmly believes in healthy competition and in protecting your right to more choices and low prices. When competition is stifled, you suffer. For this reason, we've launched a national campaign — "Free to Compete" — to fight back against Verizon's stance in the courtroom and in public, and to defend your right choose. Please join "Free to Compete" and get smart about this issue. We have provided several FAQs that you may find helpful in understanding the situation. Be assured, Vonage will continue providing you with quality, reliable phone service. Can you explain to me what the ruling means? Sure. The ruling by the appellate court is a huge win for you and for future digital phone customers just like you. It enables Vonage to conduct our business as usual during our appeal. The court granted Vonage a stay, allowing us to continue selling service to new customers while we appeal the case. Has there been any progress since the 4/24 ruling? Vonage had oral arguments before the U.S. Court of Appeals on 06/25/07. We are currently awaiting a verdict and are confident in our appeal. We have also taken measures to ensure that regardless of the outcome, the service our customers have come to expect will not be affected. What is Vonage doing to address the patent issues in this case? We remain focused on serving our existing customers with great phone service while our legal team continues our court battle. The appeals process is a long one. Be assured that service for our customers will not be interrupted because of this lawsuit. Is Vonage going out of business/bankrupt? No. We are confident our legal battle with Verizon will not impact on our ability to serve you or any of our customers. We believe Vonage is currently in a strong financial position with a base of approximately 2.45 million telephone lines. We plan on continuing to provide high-quality, reliable digital phone service for many years to come. Will my phone service be shut off? No. Your phone service will continue as it always has. Appeals cases often are not resolved quickly and we are confident this litigation will not impact on our ability to serve you or any of our customers. Will I lose my phone number? No. You will not lose your phone number as a result of this ruling or ongoing legal battle with Verizon. Will there be interruptions or changes in my phone service? We don't anticipate any changes or interruptions in your phone service as a result of this litigation.
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