CallWave Introduces Vtxt(TM)-- The World's First Portfolio of Services to Integrate Voicemail and Text Messaging.

Vtxt[TM] service ushers in a new class of mobile business voicemail that integrates voice and text and archives all messages in a personal web page

SANTA BARBARA, Calif. & ORLANDO, Fla. -- CallWave, Inc. (NASDAQ:CALL) today announced at CTIA the Company's Vtxt[TM] service that transforms mobile voicemail into readable, searchable and storable content. Incorporating CallWave's proprietary speech recognition and WEB 2.0 visual voicemail technology, the Vtxt[TM] service allows subscribers to read the gist of their voicemail on their handset, manage and reply to voice and text messages from a personal web page, and search a permanent archive of voice and text messages. The service is free during the beta trial. It will be available nationwide in calendar year second quarter of 2007 at www.callwave.com. All services will be available for private-label to carrier partners.

"CallWave is raising the bar on mobile voicemail and turning it into a modern, professional grade service with handset visual voicemail and desktop permanent message archives that integrate voice and text - so carriers can enrich handset use and integrate a killer app on the desktop all at the same time," said David Hofstatter, President and CEO of CallWave. "The Vtxt service transforms traditional mobile voicemail into a next generation Web 2.0 messaging service that anticipates the demands of today's internet savvy mobile users."

The CallWave Vtxt service is built upon state-of-the-art voicemail-optimized speech recognition technology and a managed services architecture that offers unlimited storage. This enables the Vtxt service to function without requiring live operator transcription and expands the market to include privacy concerned consumers and public corporation users who are subject to non-disclosure laws.

Industry's first SMS enhanced voicemail notification feature

CallWave has simplified the application of speech-to-text recognition technology by providing the gist of your missed calls, delivered via SMS to the handset. Rather than receiving multiple SMS messages of a completely transcribed call, subscribers can review the essence of a voice message on their handset and determine if a callback or text reply is necessary. Users will be able to hear the full message by accessing their voicemail on the handset, in email and on their personal web archive, depending on their service level.

"Our alpha trials have revealed that busy professionals want to know one simple thing from their voice messages. Namely, if and how quickly they need to return a particular call," added Hofstatter. "We have simplified the answer to this question by delivering the gist of a message on the handset rather than trying to transcribe every call word-for-word."

CallWave's GIST technology delivers General Information on the Subject and Timing of a missed call, sent to the handset via a single SMS. It combines caller ID, name, city and state, and information on the subject and timing of the call. This enables the subscriber to determine if they need to immediate reply via callback or SMS from the handset. If a message is long or critical, the full content can be accessed via the handset or the desktop.

The GIST design is based upon the way busy professionals and email centric Internet users manage their voicemail and mobile email. Often times, they reply to a missed message without ever, or only partially, listening to the voicemail. And like mobile email, they want to be able to fully review, search and find complete messages on their desktop if they skipped something on the handheld.

For mobile users who require a full, word-for-word translation of voicemail delivered via multiple SMS messages to the handset or the desktop, the CallWave platform will integrate with live operator transcription vendors.

Industry's first service to converge voice and text content on a personal web page

The CallWave Vtxt service supports voicemail review, desktop texting and callback from a personal web page. By integrating both voice and text on the desktop, subscribers can more easily and rapidly reply to their messages when and how they want. Through this process, the technology is also organizing the subscriber's mobile contacts into a network-based directory onto a secure personal web page.

"By making it easy to reply to voicemail via text, we have proven to dramatically increase SMS adoption and daily usage," said Hofstatter. "By converging voice and text and making the phone and PC interoperable, text becomes the preferred method of managing and responding to voicemail. For carriers, this evolves voicemail from a one-size-fits-all cost to a revenue generating service specifically designed for more sophisticated, demanding customers."

Industry's first searchable, permanent archive of phone content

Today's mobile consumers are also heavy Internet users. They are baffled by the loss of messages from their voicemail box. They want visual, organized and searchable archives of all their missed calls, voice messages, text messages, contacts, and more. Currently, this information is purged from the network by service providers after a specified period of time or limited by the storage capacity on the handset. CallWave Vtxt services allow subscribers to retain all this information permanently. Phone information is automatically populated on the subscriber's personal web page for easy access and management on any desktop, at any time.

"The Internet search and portal providers never throw content away, and for good reason. Well organized personally relevant information is very sticky stuff. We are bringing these customer retention benefits to voicemail and text messaging," continued Hofstatter. "Our managed services platform supports the unlimited storage requirements essential to archiving, organizing and interacting with daily calls and voice and text messages while being able to permanently store and retrieve that information at any time. Furthermore, through the creation of these personal phone archives, we are actively engaging customers on a daily basis to create the ultimate retention solution and online marketing engine."

About CallWave, Inc.

CallWave is leading the way in developing applications that make phones and computers work better together. With CallWave, tasks that are difficult to do on the phone become much easier on the desktop - without changing phone numbers, handsets or service providers. CallWave enables consumers and businesses to get more out of the devices they use everyday - their computers and phones. CallWave also private-labels convergence applications, such as PC-based visual voicemail, to service providers to reduce churn, expand on-line marketing and drive revenues. Founded in 1998, CallWave is headquartered in Santa Barbara, California. For further information, please visit www.callwave.com.

This press release may contain certain statements of a forward-looking nature. Such statements are made pursuant to the "forward-looking statements" and "safe harbor" provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements.