magicJack Expands Retail Distribution Through National Indirect Channel, Ramping to over 10,000 New Locations in 2014

Distribution partnerships also set stage to scale international distribution

WEST PALM BEACH, Fla. & JERUSALEM--()--magicJack VocalTec Ltd. (Nasdaq:CALL), a leading cloud-based communications company, announced today that it is expanding retail distribution through the launch of its national indirect retail channel. The incremental expansion brings magicJack to major metro urban population centers throughout the United States, introducing the product and company to a new customer segment nationwide. New magicJack locations, or doors, will begin launching this month, with more than 10,000 incremental new doors targeted to open in 2014 on top of the approximately 25,000 locations currently carrying magicJack including Wal-Mart, Best Buy, Radio Shack, Target, Frys, CVS and more.

The indirect channel caters to prepaid and cash-centric value seekers, as well as urban-based international callers. This channel is the most productive assisted sales environment in the prepaid wireless category and consists of mall, kiosk, mini-mart, and independently owned wireless and consumer electronics shops. Now magicJack can be found in virtually any prepaid wireless, consumer electronic and mall based store as well as big box, drugstores and online.

“Our indirect channel expansion is a greenfield opportunity, introducing magicJack to an entirely new segment of urban centric, cash oriented customers who ‘Do The Math’ on every household purchase,” said Seth Cummings, executive vice president marketing, magicJack. “This channel largely drove the adoption of prepaid mobile services over the past decade and is fueled by customers who are seeking domestic and international calling alternatives at unrivaled prices.”

magicJack will merchandise the new channel locations and launch a locally focused media plan to support the launch of this new channel. magicJack developed the national indirect channel via distribution partnerships with a select number of leading master agents, who will also be partnering with the Company to leverage their international distribution channels.

“magicJack represents a new category of unlimited, hyper low cost calling across our domestic independent retailers and international distributors,” said Marvin Attallah, CEO of Rush Star Wireless. “As we look at new smart home technologies, magicJack stands apart in the over-the-top calling category. I’m especially excited about offering magicJack as I’m a long time satisfied magicJack customer.”

“Our diverse international customer base craves low cost, high quality calling alternatives and magicJack is poised to set a new bar,” said Raj Anthonypillai, managing director of Wireless Shop. “An exciting and compelling feature of the magicJack is the free Android and iOS magicJack app, offering our prepaid mobile customers the ultimate in flexibility and convenience by having their home or business magicJack number ring on-the-go.”

For more information visit www.magicjack.com.

About magicJack VocalTec Ltd.

magicJack VocalTec Ltd. (Nasdaq: CALL), the inventor of the magicJack and the industry’s original VoIP (voice over IP) service in 2007, is a leading cloud communications company. With its easy-to-use, low cost solution to telecommunications, the Company has sold more than 10 million award-winning magicJack devices, now in its third generation, and has the use of more than 30 technology patents. It is the largest-reaching CLEC (Competitive Local Exchange Carrier) in the United States in terms of area codes available and certification in number of states.

Contacts

MEDIA CONTACTS:
LPI Communications for magicJack
Leasa Ireland, 310-750-7082
leasa@lpicommunications.com
or
INVESTOR RELATIONS CONTACT:
magicJack VocalTec Ltd.
Seth Potter, 561-749-2255
ir@vocaltec.com

Release Summary

As part of its retail distribution expansion, magicJack is adding 10,000 more retail locations in 2014 to its existing 25,000-door national indirect retail channel, including "big-box" retailers.

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Contacts

MEDIA CONTACTS:
LPI Communications for magicJack
Leasa Ireland, 310-750-7082
leasa@lpicommunications.com
or
INVESTOR RELATIONS CONTACT:
magicJack VocalTec Ltd.
Seth Potter, 561-749-2255
ir@vocaltec.com