magicJack Modifies Newest Product to Accommodate Wi-Fi, LTE Internet Access, DECT, Multi-Line Phones and Other Possibilities Off

magicJack Modifies Newest Product to Accommodate Wi-Fi, LTE Internet Access,
DECT, Multi-Line Phones and Other Possibilities Off One Device

WEST PALM BEACH, Fla. and NETANYA, Israel, Dec. 26, 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 the newest product has been
modified to include two USB slots, one USB plug, a SD micro slot, one RJ11
jack and one RJ45 jack. With LTE 4G progressing so quickly in the United
States and throughout the world, the Company modified the newest product for a
few months to accelerate the ability to offer discounted Internet access to
new and existing customers using this device besides other functions and
features. This will provide many people their first opportunity to take
advantage of high-speed Internet access.

magicJack Logo

magicJack will announce the new product name in 2013 and expects the new
product to be offered in early Q2 2013. Incredibly, it will be only be about
slightly larger than the magicJack PLUS and will offer high definition (HD)
voice. The Company expects additional, exciting new products to follow in 2013
utilizing oursecond new chip of 2013. This is a 55nm chip designed for
portable use and includes a super scalar one Ghz CPU andmuch largerGB DDR2
or DDR3 memory as well as over 25 other functions. The Company expects to
continue to offer the magicJack PLUS as its price-leading model as it has
proven to be very reliable and desirable, with extremely good sales recorded
in December. It is no wonder that the magicJack PLUS continues to do so well,
as the Company will soon announce a major award granted to magicJack, with the
Company scoring on top of five different metrics being awarded the top
consumer VoIP company.

Dan Borislow adds, "Withassets nobody else has we will continue to dominate
and grow our space.This is the power of what we are building and the patents
and IP we have built up. This has been a breakout year not only financially,
but we havedeveloped and planned our future. Our growth is predicatedon
locking some deals up and executing on our plans. We do not need one more
unique idea to be verysuccessfuland grow the value of our Company for years
to come.I think 2013 will be the year people understand what we are building,
our technology and our vastopportunities. Our newest products will be our
best inventions and will dwarf what we have done with magicJack to date."

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

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 magicJack VocalTec Ltd. logo is available at

CONTACT: Investor Relations
         Andrew MacInnes, President
         Media Relations
         Kari Hernandez, INK for magicJack

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