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TMCNet:  magicJack is Granted U.S. Patent No. 8,306,201

[October 24, 2012]

magicJack is Granted U.S. Patent No. 8,306,201

WEST PALM BEACH, Fla., and NETANYA, Israel, Oct 24, 2012 (GlobeNewswire via COMTEX) -- magicJack VocalTec, Ltd. (Nasdaq:CALL) (the "Company"), the Voice Experts and cloud communications leader that invented voice over IP (VoIP) and sold over ten million magicJacks(R), today announced the U.S. Patent and Trademark Office granted the Company U.S. Patent No. 8,306,201.


Upon hearing the news, magicJack CEO Dan Borislow commented, "Being innovative, more efficient and creating products and services that are loved by our customers is the magicJack way. Today, myself, along with a co-worker, are the inventors of a patent that will make communications easier, more convenient and much less costly. This patent and our already deployed technology saves and conserves valuable numbering resources throughout the world. What would have taken a supercomputer a few years ago to enable this technology is now being performed on a series of off-the-shelf high power multi Intel CPU servers. Besides receiving the patent, for the last few months we actually have it working successfully on millions of our own telecom apps on Apple(R) and Android(TM), computers and many magicJacks. During this short time, we have seen a six to eight fold increase in the number of inbound minutes on our apps, proof of what the future holds. This is a remarkable occurrence enabling whole classes of people to be able to receive phone calls who might not previously have been able to do so for whatever reason. I.e. five year-old children are now getting calls from their parents and grandparents on their iPod touch(R), iPad(R), iPhone(R) and various Apple computers with their contact list in iCloud. In a nutshell, if a company had people install a billion telephone apps and previously wanted phone numbers for each, it would be close to if not impossible. It would certainly be cost prohibitive. With this invention, instead of using one billion numbers, for instance, you might just use just three million telephone numbers for all one billion users. Like always, each called party receives a unique number to call back the magicJack user on a real phone number. With so many new devices being purchased worldwide and previous devices handed down to kids and others who all should want telephone apps with real telephone numbers, the timing of this invention could not have been better. The more innovative the hardware manufactures are, the better we do. magicJack products and services are not only the most innovative, affordable and easy to use, but combined might possess the most important intellectual property in its space. The timing of receiving this patent came as a surprise to us, a very welcomed surprise indeed. My holiday present came early this year. It's both important and complimentary to be rewarded for thinking outside the box and for taking the risk of being different." This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements about our projected revenues, cash flows, strategy, future operations, new product introductions and customer acceptance, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include, among other things: changes to our business resulting from increased competition; any operational or cultural difficulties associated with the continuing integration of the businesses of VocalTec and YMax; potential adverse reactions or changes to business relationships resulting from the completion of the merger; unexpected costs, charges or expenses resulting from the merger; the ability of the combined Company to achieve the estimated potential synergies or the longer time it may take, and increased costs required, to achieve those synergies; our ability to develop, introduce and market innovative products, services and applications; our customer turnover rate and our customer acceptance rate; changes in general economic, business, political and regulatory conditions; availability and costs associated with operating our network; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies; the degree of legal protection afforded to our products; changes in the composition or restructuring of us or our subsidiaries and the successful completion of acquisitions, divestitures and joint venture activities; and the various other factors discussed in the "Risk Factors" section of our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Such factors, among others, could have a material adverse effect upon our business, results of operations and financial condition. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

magicJack(R) is a registered trademark of magicJack VocalTec Ltd. All other product or company names mentioned are the property of their respective owners.

About magicJack VocalTec Ltd.

magicJack VocalTec Ltd. (Nasdaq:CALL), the inventor of VoIP including the softphone and magicJack, has the goal of becoming the leading international provider of global voice over many platforms. The Company has achieved sales of over ten million of the easy-to-use, award-winning magicJack since the device's launch in 2008, and has the use of over 30 patents, some dating to when the Company invented VoIP. 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, and the network has historically had uptime of over 99.99 percent.

The VocalTec Communications Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/ pkgid=8568 This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: magicJack VocalTec Ltd.

(Logo: http://media.primezone.com/cache/13047/int/9379.jpg) CONTACT: Investor Relations Andrew MacInnes, President 561-749-2255 ir@magicJack.com Media Relations Kari Hernandez, INK Public Relations for magicJack 512-382-8982 magicjack@ink-pr.com

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