IRVINE, Calif. -- SMCR Networks (www.smc.com) announced today, in a move aimed at fueling conversations and lowering communication costs around the world, that Skype(TM), SMC Networks and FON have combined their technologies to create a stylish and practical platform that makes it easy to enjoy Internet calls without any need for a computer.

The bundle is exclusively available to U.S. and European consumers from the Skype Web store at skype.com/shop. Priced at $159.99 for U.S. customers, the bundle includes everything you need to make Internet calls at home, at work and on the move: the sleek SMC Wi-Fi Phone for Skype (WSKP100), FON's wireless router "La Fonera", 500 minutes of SkypeOut(TM) credit, and Skype Voicemail for a year.

While calls between Skype users will always be free, 500 SkypeOut minutes come in handy when making cheap calls to ordinary telephones around the world. With the optional purchase of a SkypeIn(TM) number, you are reachable from any phone in the world.

"The arrival of WiFi phones has helped liberate Skype users from the PC and made Internet calling truly mobile," said Stefan Oberg, Skype's General Manager, Hardware. "But never before have all the necessary ingredients been combined in one package at such an attractive price. This partnership delivers a ready-to-use system, leaving more time for conversations with family, friends and colleagues everywhere."

"We're pleased to have the opportunity to work with innovators-Skype and FON-to bring together a package that makes communication better," said Tony Stramandinoli, SMC Networks' vice president of marketing. "The SMC Wi-Fi Phone for Skype opens a new means for easy voice communication, and this bundle combines the best of components and features to get users started with WiFi calling."

SMC's Wi-Fi Phone for Skype can be used anywhere where there is an open wireless access point. FON is offering the La Fonera WiFi router, which allows users to share some of their bandwidth at home, and get free access to the global community of FON Access Points in exchange. FON already has tens of thousands of access points where the SMC Skype Wi-Fi Phone can already be used. In fact, it is the world's fastest-growing WiFi community.

"Our goal at FON is to build a global WiFi community so that consumers can benefit from the fantastic capabilities and services that ubiquitous WiFi has to offer," said FON founder and CEO Martin Varsavsky. "The combination of Skype, SMC's Wi-Fi phone and FON is a huge leap forward towards this new realm of WiFi everywhere."

Skype Ltd.

Fon

SMC Networks Inc.