CallWave Triples Internet Telephone Subscriber Base in Four Months; Three Million Internet Call Waiting Customers Choose Virtual Phone Lines as Free Alternative to Costlier Options.

Business Editors

SANTA BARBARA, Calif.--(BUSINESS WIRE)--July 25, 2000

CallWave announced today that its subscriber growth rate has tripled to three million registered users during the last quarter.

Since March, two million households have signed up for the easy-to-use Internet Answering Machine that lets people with a single phone line hear who is calling while they are online, saving an aggregate of $500,000,000 per year in second phone line costs.

"Because we focused on simplicity and ease of use, we've blown past every competitor and all our projections," said David Hofstatter, president of CallWave. "This latest milestone demonstrates how compelling and widely adopted our services have become."

Hofstatter said that beyond our demonstrated growth, the expansion opportunities for CallWave's Internet-based phone services are significant and increasing rapidly. Media Metrix reports that nearly 70 percent of U.S. Web/digital users have household incomes under $70,000, representing a vast pool of strong prospects for CallWave's free, simple technology. Analysts at Saddletree Research project a 38 percent annual growth rate for the communications application service provider (CASP) market through the year 2004.

CallWave's growth puts it in the company of major Web properties. As reported by PC Data Online, CallWave's Web site was the 126th most visited in June 2000, making it the most popular Internet-based phone service in the world, and ranking it ahead of such popular consumer sites as E-Trade, Buy.com, eTour.com, WWF.com, and CompuServe.

More about the Internet Answering Machine

The CallWave Internet Answering Machine (IAM) is free and available throughout the United States and Canada. It is compatible with all browsers and Internet service providers, including AOL. The IAM works with the busy call-forwarding feature of the user's phone line. The free IAM software can be downloaded in less than a minute at http://www.callwave.com and runs on Windows PCs.

About CallWave

CallWave is a new type of Internet-based telephone services company. CallWave's free, easy-to-use technology gives Internet users the convenience and functionality of extra phone lines in their home or small office, without the additional expense. CallWave's Internet Answering Machine is a free alternative to a dedicated phone line, and the FaxWave fax-to-email service is a free alternative to a dedicated fax line. Both services are available to Internet users nationwide, and use open file formats, enabling voice and fax messages to be reviewed on and forwarded to almost any computer. The company is based in Santa Barbara.

To subscribe or for more information, visit http://www.callwave.com.