MagicJack VocalTec Sells Over 365

WEST PALM BEACH, Fla., and NETANYA, Israel, Dec. 16, 2011 -- magicJack VocalTec, Ltd., the Voice Experts that invented voice over IP and sold over eight million magicJacks(R), announced today that the company has sold over 365,000 magicJack PLUS devices in the last 30 days and is estimating fourth quarter 2011 sales to total $55 to $60 million. Due to pricing and dilution concerns, magicJack VocalTec has cancelled its anticipated underwritten offering.

Dan Borislow, CEO and Director of magicJack VocalTec, states: "It is quite exciting to watch our company ship the most magicJacks we have ever shipped in a 30-day period. It is now obvious the company is having its best sales quarter ever. Most of these sales will translate into revenue and income in future periods as we recognize the great majority of these sales as revenue over a 12-month, or longer, time frame. Should the contingency arise, the company now expects to have the most cash and cash equivalents on its balance sheet in its history of over $50 million then month. With cash and equivalents growing so quickly, the company decided to halt the offering of its shares, determining that the dilution at current market prices was not worth any benefits it might receive from raising capital. I am as well looking forward to all our shareholders receiving double the amount of shares they presently hold beginning at once week. Lastly, we look forward to resuming our stock repurchase program during the stock is so attractively priced."

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 sold over eight million of the easy-to-use, award-winning magicJacks 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.