magicJack Expects to Post Over $39 Million in GAAP Revenue and Over $0.70 per Share in Operating Income in Q4 2012 with GAAP Q4

magicJack Expects to Post Over $39 Million in GAAP Revenue and Over $0.70 per
Share in Operating Income in Q4 2012 with GAAP Q4 and Whole Year 2012 Income
to be Well Above Previous Estimates

Company Expects to Exit 2012 With Lower Share Count of 18.8 Million Shares and
$40 Million in Cash and Investments

WEST PALM BEACH, Fla. and NETANYA, Israel, Dec. 28, 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^®, announces higher estimates for Q4 and full year
2012. For Q4, the Company expects to have over $0.70 per share of operating
income. These estimatesincreased based on lower telecom expenses, higher
receipts and a reduction in legal, advertising, media and otherexpenses. The
Company had 19.3 million shares outstanding at end of Q3 2012, and cash and
investments of $34.3 million. The Company has reduced share count by
approximately 500,000 shares and increased cash and investments by $6 million
since last quarter (Q3 2012). The Company expects to end this year with
approximately 18.8 million shares outstanding and approximately $40 million in
cash and investments, and continues to drastically reduce its telecom costs
while increasing access charge collections.

Although the Company typically focuses onGAAP numbers, it wants its investors
to clearly understand that the deferred revenue liabilities reported in Q3
2012 of $127.3 million will end up having a fractionof that amount of real
cash outlay.In other words, under GAAP, deferred revenue liabilities are not
cash liabilities. The Company's liquidity and cash generation has been so
large because deferred revenue liabilities required only a small cash outlay,
and we expect the same pro rata outlays and possiblybetter in the future. In
the past, the Company has not broken out many non-GAAP details, but intends to
include more non-GAAP details in future earnings releases. The Company will
continue to inform investors of any developments that may be deemed important
during its buyback program. Operating income does not include one-time charges
including charitable donations and other income.

magicJack CEO Dan Borislow stated, "Our results for 2012 will exceed
expectations. We leave the year with little litigationand having
addedimportant new assets. Our future goals have been established with
precise plans for achieving them for 2013. I want to thank our employees for a
job well done and a specialshout out to Greg Wood, Peter Russo, Kirill, Dr.
Y.W. Sing, Jonathan, Bin, Mary, Greg, Shelby and the Boys."

The company will host a conference call today for investors at 10:00 a.m. ET.
Conference call details are as follows:

U.S. Toll Free: 1.877.810.3370
International:  +1.708.290.1372
Conference ID: 85149375

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

CONTACT: Kari Hernandez, INK for magicJack
         magicjack@ink-pr.com

company logo