EDISON, N.J. -- Vonage, a leading provider of broadband phone service, today announced a co-branded agreement with CableAmerica to deploy broadband telephony service to CableAmerica's cable television passings in Arizona, Missouri, California, and Michigan. Vonage will offer local and long distance calling throughout the United States and Canada for $34.99 a month to CableAmerica's aggressively growing broadband Internet customer base.

The Vonage-CableAmerica venture offers residents throughout CableAmerica's territory an affordable, full-featured telephony choice. CableAmerica's customers will be offered Vonage's residential and small business plans. These plans include all the standard calling features such as call waiting and caller ID as well as a number of proprietary features, such as online voicemail and Web-based account management at no additional cost.

"By launching our agreement with CableAmerica, Vonage proves the importance of broadband telephony to enhance an MSO's sustainable revenue growth," said Cyrus Driver, vice president, Wholesale Sales. "We are pleased that CableAmerica will offer the service, as its high speed Internet subscribers may choose phone service with any area code Vonage offers, even though their subscribers may be based in Arizona, Missouri, California, and Michigan. Vonage's Private Label programs allows regional MSOs to expand their revenue stream with virtually no capital or operational expenditure resulting in higher positive cash flows while reducing churn in the existing customer base due to the added 'sticky factor' of a digital telephone service."

"We are pleased to team with Vonage to launch CableAmerica Digital Telephone to all our high speed Internet customers" said Christopher A. Dyrek, CableAmerica Executive Vice President. "CableAmerica realizes the importance of offering customers a choice in their telephone service options. We are looking forward to offering our customers a package of services that includes CableAmerica Digital Telephone along with CableAmerica Broadband High Speed Internet Access and Digital High Definition Television."

Vonage Holdings Corp.