MagicJack VocalTec Announces Proposed Offering of 1,500

WEST PALM BEACH, Fla., and NETANYA, Israel, Dec. 9, 2011 -- magicJack VocalTec, Ltd., the Voice Experts that invented voice over IP and sold over eight million magicJacks®, announced today that it intends to offer 1,200,000 of its ordinary shares and certain shareholders of the Company intend to offer 300,000 ordinary shares in an underwritten public offering. Oppenheimer & Co. Inc. is acting as sole bookrunning manager for the offering. Canaccord Genuity is a lead manager and Northland Capital Markets and E*Trade are acting as co-managers for the offering.

magicJack VocalTec Ltd., the inventor of VoIP including the softphone and magicJack, has the goal of becoming the leading international provider of global voice over many platforms and to conveniently offer other valuable services and products to its end users. The company has achieved sales of over eight million of the easy-to-use, award-winning magicJack since the device's launch in 2008, and has the use of over 30 patents, some dating to when the company invented VoIP. The company believes it is the largest reaching CLEC in the United States in terms of area codes available and certification in number of states, and the network has had little or no down time.