Vonage(R) Raises $250 Million in Convertible Debt

HOLMDEL, N.J., Dec. 19 /PRNewswire/ -- Vonage Holdings Corp, a leading provider of broadband phone service, today announced that it has raised $250 million in convertible debt funding with a group of investors led by affiliates of Bain Capital, with strong participation from leading financial institutions and existing investors including New Enterprise Associates (NEA) and Meritech Capital Partners. The latest round of financing brings total investment in the company to $658 million.

"This latest round of funding validates Vonage's leadership in the broadband telephony market," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation.

"In addition to our existing investors, Vonage has raised capital from sixteen new investors, which proves the financial community is confident Vonage is executing on our strategy to redefine the way people communicate, having already shifted the telecommunications landscape to an IP-based world."

"We are looking forward to helping Vonage continue extending its lead as the number one player in the VoIP industry, and helping expand its services both domestically and abroad," said Michael Krupka, managing director of Bain Capital Ventures.
Vonage's latest round of financing will be used as general working capital to build-out its network across the United States including deployment of Enhanced 911. Vonage senior management also participated in the round.

Citigroup, UBS and Deutsche Bank served as financial advisors to Vonage throughout the transaction; Shearman & Sterling LLP served as legal advisor.

About Vonage (R)
Vonage is a pioneer in the broadband phone industry, setting the standard for pricing, features, call quality and reliability for the entire VoIP category. Vonage's award winning service is sold on the web and through national retailers like SAM's Club, Best Buy, Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA. Vonage Holdings Corporation is headquartered in Holmdel, New Jersey. For more information about Vonage's products and services, please visit http://www.vonage.com/ or call 1-VONAGE-HELP. Vonage(R) is a trademark of Vonage Marketing, a subsidiary of Vonage Holdings Corp.
Vonage Holdings Corp

CONTACT: Mitchell Slepian of Vonage, +1-732-528-2677,[email protected]; or Kristin Conforti of Connors Communications forVonage Holdings Corp, +1-516-320-6839, [email protected]

Web site: http://www.vonage.com/

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