Vonage Holdings is Sued for Patent Infringement on VOIP Voicemail by Klausner Technologies, Inc.; $180 Million of Estimated Damages and Royalties

NEW YORK--(BUSINESS WIRE)--July 10, 2006--Klausner Technologies, Inc. announced today that it has filed suit against Vonage Holdings, Inc. (NYSE:VG) for patent infringement, with damages and royalties estimated at $180 million.

The lawsuit asserts that the Vonage VOIP voicemail platform infringes Klausner Technologies' U.S. Patent. 5,572,576. Klausner Technologies recently granted a license under the same patent to Time Warner's AOL (NYSE:TWX) for AOL Voicemail and VOIP voicemail services.

"We approached Vonage in January and offered them the opportunity to enter into a licensing agreement that could've allowed them to continue providing their VOIP voicemail, a key feature of their Internet phone service. We have already granted a license under the same patents to Time Warner's AOL and are unable to wait any longer for a response from Vonage," said Judah Klausner.

The suit has been filed in a federal court in the eastern district of Texas by the California law firm of Dovel & Luner. Greg Dovel, counsel for Klausner Technologies, said that having received no communication from Vonage apart from a request in February for more time to study the situation, legal action was required to protect Klausner Technologies' interests.

Klausner Technologies, founded by Judah Klausner, the original inventor of the PDA and the electronic organizer, is owned by a group of private investors. It controls over 25 patents, worldwide, covering next generation VOIP voicemail services in which subscribers are able to view and selectively retrieve individual voice messages via their PC or cell phone inboxes.