ACN Takes Control of WorldGate

TREVOSE, Pa. -- WorldGate Communications, Inc. (Nasdaq –WGAT.OB), a leading provider of video phone products and WGI Investor, LLC, a private investment fund, today announced that they have reached an agreement for the sale of a controlling interest in WorldGate to WGI Investor. In a transaction earlier this week, WGI Investor acquired the entire interest in certain debentures from the company’s senior secured creditor, YA Global Investments, LP (f/k/a Cornell Capital Partners, LP), and today’s agreement calls for WGI Investor to exchange these debentures, plus additional consideration, for 63% of the company’s common voting equity. The transaction includes a further cash investment in WorldGate, and is contingent on the completion of certain outlined activities, including shareholder approval, expected to be obtained in early 2009. The transaction will result in the elimination of the debentures, valued at $5.0M, and provide additional working capital to WorldGate.

WGI Investor is a private investment fund whose ownership includes the owners of ACN, Inc., the world’s largest direct selling telecommunications company, which offers a broad range of telecommunications services in 19 countries in North America, Europe and the Asia-Pacific region. ACN has announced today that it has agreed to purchase in excess of $50M in video phones from WorldGate in a separate transaction.

The companies expect to distribute details of the transactions within the next few weeks.

WorldGate Communications Inc. (Nasdaq: WGAT)

ACN Inc.