Sprint Nextel and Vonage Settle Patent Dispute

Settlement Terms Include One-Time Payment to Sprint and Licensing Agreement that Provides Vonage with Use of Sprint Patents

Sprint Nextel (NYSE: S) and Vonage (NYSE: VG) today announced that they have settled their ongoing patent dispute and entered into a licensing arrangement under Sprint's Voice over Packet ("VOP") patent portfolio. On September 25, 2007, a jury in the U.S. District Court in Kansas City, Kan., found that Vonage had infringed six Sprint patents. The settlement agreement resolves all claims related to this dispute.

In addition, Sprint has agreed to license Vonage its VOP portfolio, which comprises more than 100 patents covering different methods, components and systems that efficiently connect telephone calls between a regular telephone network and a packet-switched network such as the Internet.

"We are pleased to resolve our dispute with Sprint and enter into a productive future relationship" said Sharon O'Leary, Vonage chief legal officer.

"We view this settlement and licensing agreement as a validation of the strength and breadth of our patent portfolio," said Harley Ball, Sprint Nextel's vice president of intellectual property. "This is an affirmation of Sprint's research and development and a testament to the rich history of innovation at Sprint Nextel.

About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks serving 54 million customers at the end of the second quarter 2007; industry-leading mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.

About Vonage
Vonage (NYSE: VG) is a leading provider of digital phone services with 2.45 million subscriber lines. Our award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. We offer feature-rich and cost-effective communication services that offer users an experience similar to traditional telephone services. Our Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail - for one low, flat monthly rate. For more information about Vonage's products and services, please visit www.vonage.com.