Internet Telephone Service

TowerStream and Vonage(R) Form Alliance to Offer VoIP Over Fixed Wireless Broadband

August 2, 2005

MIDDLETOWN, R.I., Aug. 2 /PRNewswire/Press Release -- TowerStream, the leading fixed wireless Internet provider, today announced an alliance with Vonage Marketing, a subsidiary of Vonage Holdings Corp., North America's leading broadband telephony company, to offer its service to TowerStream's customers. With the new alliance, TowerStream will offer businesses a true alternative to the existing phone companies for both voice and broadband in one offering. Customers in New York City, Los Angeles, Chicago, San Francisco, Boston, and the greater Providence and Newport, R.I. areas will now be able to choose Vonage's small business VoIP solutions with predictable flat rate billing, as well as low international rates and advanced features.

"TowerStream and Vonage both represent alternatives to the legacy telephone networks, offering better features at a substantially lower cost," said Jeff Thompson, COO of TowerStream. "Combining these services will enable increased flexibility, reliable performance and cost savings to enhance the productivity of any size business, and can be up and running in a matter of days, not weeks or months. This collaboration will serve as the clearest example of the symbiotic relationship between VoIP and wireless broadband over the last mile."

TowerStream's pre-WiMAX service offers a flexible alternative to the integrated T1s most businesses use today. With the quality of service provided on TowerStream's network, businesses are able to configure their Internet traffic to ensure VoIP calls are always given priority. In addition, both TowerStream and Vonage offer a high level of reliability backed by their Service Level Agreements (SLA).

"We have been using Vonage over TowerStream's fixed wireless broadband for the past year, and have been delighted with both the superior call quality and reliability of the connection," said J.P. Maxwell, President of Tipit Communications in Brooklyn. "We initially turned to TowerStream to help alleviate a latency problem, and are now receiving up to five megabits per second, which easily supports our voice and data for less than the cost of a landline T1. VoIP and fixed wireless have proven to be invaluable to our company and this collaboration will go a long way in showing that together they can quickly improve communications and cut costs for any business."

"Vonage welcomes TowerStream as this alliance gives customers yet another avenue to purchase the company's flat-rate, full featured broadband telephony service," stated Mark Lyons, vice president, VAR Sales of Vonage Marketing. "Further, our ability to offer the Vonage solution via TowerStream's massive fixed wireless broadband network makes our service even more useful to customers."

About TowerStream: TowerStream is a leading fixed wireless broadband provider in the U.S. Founded in 2000, today the company has the largest pre-WiMAX deployment in the U.S. serving such markets as New York City, Los Angeles, Chicago, San Francisco, the greater Boston, Providence and Newport, R.I. areas, and is aggressively expanding coverage throughout the country. The company is the first carrier selected to join the WiMAX Forum to assist leading vendors such as Intel, Alvarion, Fujitsu, Aperto Networks and Proxim in establishing industry compliance with international broadband wireless access standards and cross-vendor interoperability. For more information on TowerStream, please visit their website at: http://www.towerstream.com.

About Vonage®: Vonage has pioneered the broadband phone industry, setting the standard for pricing, features, call quality and reliability for the entire VoIP category. Vonage's award winning service is sold on the web and through national retailers like SAM's Club, RadioShack, Best Buy, Circuit City, Staples, Fry's Electronics, Office Depot and CompUSA. Vonage Holdings Corporation is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit http://www.vonage.com or call 1-VONAGE-HELP. Vonage® is a trademark of Vonage Marketing, a subsidiary of Vonage Holdings Corp.

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