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TMCNet:  magicJack is Granted Stay in Patent Case

[December 20, 2012]

magicJack is Granted Stay in Patent Case

WEST PALM BEACH, Fla. and NETANYA, Israel, Dec 20, 2012 (GLOBE NEWSWIRE via COMTEX) -- magicJack VocalTec, Ltd. (Nasdaq:CALL) (the "Company"), the Voice Experts and cloud communications leader that invented voice over IP (VoIP) and sold over ten million magicJacks, announced today that in a patent infringement action brought against it by another company over U.S. Patent No. 8,243,722, the court granted a stay of the litigation in light of a pending re-examination proceeding in the U.S. Patent & Trademark Office seeking cancellation of that patent. The re-examination petition was filed prior to the filing of a lawsuit, and on November 14, 2012, the USPTO granted the petition on grounds including that recently submitted prior art references call into question the validity of the '722 patent. As set forth in magicJack's papers filed in support of its motion to stay the litigation, the USPTO found all thirteen of the grounds of invalidity asserted in the petition raise substantial new questions concerning the patentability of the '722 patent. Among the prior art references cited in the petition are two published patent applications assigned to YMax Communications Corp., an affiliate of the magicJack defendants named in the litigation -- U.S. Patent Application Pub. No. 2007/0189270 to Borislow et al. and U.S. Patent Application Pub. No. 2007/0189271 to Borislow et al. -- both of which predate the '722 patent by at least two and a half years. According to the court's order, the case is stayed until June 14, 2013, at which time the parties are to provide the court with a status report on the re-examination, and at which time magicJack may file a motion to continue the stay if needed. magicJack believes the re-examination process in the USPTO is a critical and necessary first step when companies don't properly disclose prior art and has previously used the process with great success against other supposed patents.

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements about our projected revenues, cash flows, strategy, future operations, new product introductions and customer acceptance, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include, among other things: changes to our business resulting from increased competition; any operational or cultural difficulties associated with the continuing integration of the businesses of VocalTec and YMax; potential adverse reactions or changes to business relationships resulting from the completion of the merger; unexpected costs, charges or expenses resulting from the merger; the ability of the combined Company to achieve the estimated potential synergies or the longer time it may take, and increased costs required, to achieve those synergies; our ability to develop, introduce and market innovative products, services and applications; our customer turnover rate and our customer acceptance rate; changes in general economic, business, political and regulatory conditions; availability and costs associated with operating our network; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies; the degree of legal protection afforded to our products; changes in the composition or restructuring of us or our subsidiaries and the successful completion of acquisitions, divestitures and joint venture activities; and the various other factors discussed in the "Risk Factors" section of our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Such factors, among others, could have a material adverse effect upon our business, results of operations and financial condition. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

magicJack(R) is a registered trademark of magicJack VocalTec Ltd. All other product or company names mentioned are the property of their respective owners.

About magicJack VocalTec Ltd.

magicJack VocalTec Ltd. (Nasdaq:CALL), the inventor of VoIP including the softphone and magicJack, has the goal of becoming the leading international provider of global voice over many platforms. The Company has achieved sales of over ten 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. It is the largest reaching CLEC (Competitive Local Exchange Carrier) in the United States in terms of area codes available and certification in number of states, and the network has historically had uptime of over 99.99 percent.

The VocalTec Communications Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/ pkgid=8568 The magicJack VocalTec Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/ pkgid=10116 CONTACT: Investor Relations Andrew MacInnes, President 561-749-2255 ir@magicJack.com Media Relations Kari Hernandez, INK Public Relations for magicJack 512-382-8982 magicjack@ink-pr.com http://media.globenewswire.com/cache/13047/small/9379.jpg <p>(Logo: http://media.primezone.com/cache/13047/int/9379.jpg) (Logo: http://media.primezone.com/cache/13047/int/9379.jpg) (Logo: http://media.primezone.com/cache/13047/int/10959.jpg) http://www.globenewswire.com/newsroom/ti nf=MTMjMTAwMTYzNjcjMTMwNDc=

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