Phone.com Receives INTERNET TELEPHONY Award

Phone.com Virtual Office Recognized for Outstanding Innovation

BOSTON, MA–(Marketwire – January 22, 2008) – Phone.com, which offers cutting-edge Internet-based communications services for small businesses and households, announced today that Technology Marketing Corporations (TMC®) INTERNET TELEPHONY magazine (www.itmag.com) has named Phone.com Virtual Office as a recipient of its 2007 Product of the Year Award. INTERNET TELEPHONY has been the VoIP Authority Since 1998™.

“Were honored to have INTERNET TELEPHONY recognize Virtual Office as Product of the Year for 2007,” said Ari Rabban, CEO of Phone.com. “This accolade speaks to the growing support we are receiving for Phone.com Virtual Office, our flagship product tailored for entrepreneurs and SOHO business owners. We are proud of our web interface, our technical capabilities, and our excellent customer service team and we look forward to offering new features over the next few months.”

Focusing on the infrastructure requirements and budgets of small businesses, Phone.com Virtual Office offers private branch exchange-like features, starting at $9.88 per month. Phone.com Virtual Office enables businesses to port their existing number or request a local, toll-free or vanity toll-free number and then “build” a virtual business phone system from an extensive selection of features, including auto attendant, phone extensions, voicemail, fax services, and customizable “Follow Me Calling.” Phone.coms Virtual Office is appropriate for both businesses based in the US and abroad, offering attractive international call rates and enabling overseas companies to set up a US-based number.

“Phone.com has proven they are committed to quality and excellence while addressing real needs in the marketplace. INTERNET TELEPHONY is pleased to grant a 2007 Product of the Year Award to their Virtual Office system,” said Rich Tehrani, TMC President and Editor-in-Chief of INTERNET TELEPHONY magazine. “Were proud to honor their hard work and accomplishments and look forward to more innovative solutions from Phone.com in the future.”

A full list of Product of the Year winners will be published in the February 2008 issue of INTERNET TELEPHONY magazine (www.itmag.com).

For more information about TMC, please visit www.tmcnet.com.

About Phone.com

Phone.com is a one-stop portal offering a suite of innovative, economical phone services designed for entrepreneurs and households, with plans starting at $9.88 per month. Powered by VoIP and SaaS technologies, the company currently offers its first two Internet-based communications products, Virtual Office for small businesses and Home Phone for consumers, with plans to introduce additional products in 2008. Phone.com, founded in 2007, is headquartered in Boston and is funded primarily by WashingtonVC and Internet Real Estate Group. For more information please visit phone.com.

About INTERNET TELEPHONY magazine

INTERNET TELEPHONY has been the VoIP Authority since 1998™. Since the first issue in February of 1998, INTERNET TELEPHONY magazine has been providing unbiased views of the complicated converged communications space. INTERNET TELEPHONY offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs. INTERNET TELEPHONY magazine has a circulation of 225,000 including pass-along readers. For more information, please visit www.itmag.com.

About TMC

Technology Marketing Corporation (TMC) publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and IMS Magazine. TMCnet, TMCs Web site, is the leading source of news and articles for the communications and technology industries. Ranked in the top 6,000 most visited Web sites in the world by alexa.com*, TMCnet serves as many as three million unique visitors each month. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. In addition, TMC produces INTERNET TELEPHONY Conference & EXPO, and Call Center 2.0 Conference. For more information about TMC, visit www.tmcnet.com. (*alexa.com is an amazon.com company that ranks Web sites by their traffic levels. Neither alexa.com nor amazon.com is affiliated with TMCnet.)