ArialPhone Corp. Partners With Vonage To Combine 1 Oz. Wearable Communications Device With A New Choice in Digital Telephone Service.

Business Editors and High-Tech Writers

MUNDELEIN, Ill.--(BUSINESS WIRE)--Aug. 13, 2002

Joint Promotion Targets High-Speed Internet Users in the Home,

Timed With New, Reduced ArialPhone Pricing

ArialPhone Corp., a provider of wireless communications devices and voice-enabling software applications, and Vonage, a leading provider of digital home telephone service, today announced a partnership that combines the innovative capabilities of the 1 oz. wearable ArialPhone with the advantages of Vonage's DigitalVoice(SM) unlimited local and long distance calling plan.

The announcement comes as ArialPhone Corp. has just announced new reduced pricing. Now available for $199, ArialPhone represents a new breed of communications product that allows users to place phone calls through a computer contact database, such as ACT!, Outlook or Outlook Express, simply by saying a person's name or phone number. It can now be used in conjunction with Vonage DigitalVoice, which offers home phone service including unlimited local and long distance calling, reduced international rates and all of the latest calling features for the flat monthly rate of $39.99. ArialPhone customers all over the nation can now conveniently choose Vonage DigitalVoice home phone service -- all they need is a high-speed Internet connection.

"By teaming up with Vonage, we are giving consumers the best that today's telephone communications industry has to offer," said Mike Wagener, president of ArialPhone Corp. "Vonage not only offers excellent rates and all the latest calling features and services, but they have demonstrated a strong commitment to improving the quality and convenience of telephone calling, which is in line with our goals at ArialPhone."

ArialPhone's patented, hands-free Earset design enables users to move un-tethered as far as 150 to 300 feet from their PCs as they place and receive phone calls. Productivity and efficiency gains are realized because the user is able to perform automated contact management functions, such as voice dialing by name, while moving about the home or office.

"Our partnership with ArialPhone is setting the standard for next-generation telephone communications in the home and office," said Jeffrey Citron, chairman and chief executive officer of Vonage. "Together, the cutting edge offerings of Vonage DigitalVoice coupled with the ground-breaking capabilities and mobility of ArialPhone produces a complete package that makes traditional telephone service and functionality archaic."

Promotion Offers Second Phone Line Capabilities to Purchasers

For a limited time, both new and existing ArialPhone customers who purchase the Vonage DigitalVoice service will receive a free automatic two-line switch kit from ArialPhone Corp. Both new and existing Vonage DigitalVoice customers who purchase the ArialPhone will also receive the free two-line kit. Valued at $49.95, the kit provides consumers with a quick and easy way to add an additional Vonage DigitalVoice phone line. Connected to the ArialPhone base station, the two-line kit allows the use of the ArialPhone for dialing out or answering either line from anywhere in the office, house or yard. Users can also place a call on hold while making a second call or answering a second line. The switch kit even plays music for the party on hold.

New Reduced ArialPhone Pricing

Now available at a new reduced priced of $199, ArialPhone can be purchased through the ArialPhone Web site or through leading telephony resellers across the country; at Fry's Electronics; and through leading direct marketers such as Hello Direct, Communitech and TechnoBrands.

About Vonage DigitalVoice

Vonage DigitalVoice is redefining communications by offering consumers a choice of home telephone service providers. Vonage DigitalVoice offers an easy-to-use product with the most popular features and unlimited local and long distance calling for one flat rate. Utilizing proprietary technology, Vonage DigitalVoice enables high-quality phone service through any high-speed Internet connection, using a standard telephone. Vonage has headquarters in Edison, N.J. For more information about Vonage's products and services, visit www.vonage.com or call 1-VONAGE-HELP.

About ArialPhone Corp.

ArialPhone Corp., launched in January 2001, is a provider of wireless communications devices and voice-enabling software applications. The company's flagship product, ArialPhone, combines wireless and voice recognition technology in a sleek, patented Earset design that improves standard telephone calling processes while also allowing wireless voice computer input for dictation, Internet calling, and other third party voice recognition functions. It can be integrated with the most popular digital PBXs, and now supports an expanded group of contact management systems such as ACT!, Outlook and Outlook Express. Privately held, ArialPhone Corp. has headquarters near Chicago in Mundelein, Ill. For more information, visit www.arialphone.com, or contact the company's headquarters at 104 Terrace Dr., Mundelein, Ill. 60060. Phone: [phone]. E-mail: [e-mail].

ArialPhone and ArialPhone Corp. are trademarks of ArialPhone Corp. Vonage DigitalVoice(SM) is a service mark of Vonage Holdings Corp. All other trademarks or registered trademarks are property of their respective holders.