magicJack is Granted Stay in Patent Case

magicJack is Granted Stay in Patent Case

WEST PALM BEACH, Fla. and NETANYA, Israel, Dec. 20, 2012 (GLOBE NEWSWIRE) --
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 predatethe '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 successagainst other supposed patents.

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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-Kand 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® 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

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