January 14, 2014

magicJack Brand Refresh Encourages Consumers to "Do the Math"

Company supports simplified vision with new website, packaging, POS, #magicMath social media hashtag

WEST PALM BEACH, Fla. & JERUSALEM--(BUSINESS WIRE)-- magicJack VocalTec Ltd. (NASDAQ: CALL), a leading cloud communications company, today announced the launch of a new national advertising program titled "Do The Math." The television, radio and print ads, created in English and Spanish, provide a simple and straightforward contrast between higher cost competitors and magicJack's unrivaled value-priced package. The campaign represents the first step in a global brand refresh that includes the Company's website and social media, with packaging and retail point-of-sale (POS) soon to follow. Enhancements to the customer care experience, to be announced soon, will also be included in the brand refresh.

"Millions of customers have already discovered the compelling appeal of our high quality, value-priced phone service, saving hundreds of dollars a year by replacing their landlines," said Gerald Vento, CEO of magicJack. "When customers ‘Do the Math,' they will find that there is simply no other offer in the market that provides the same value and quality as magicJack."

The campaign marks the first major marketing initiative under the Company's new management team and the first brand refresh in its seven-year history.

"magicJack has created a brand with immense recognition from its 'As-Seen-on-TV' style of commercials over the last several years," said COO Tim McDonald. "As we move to capitalize on our position as the market leader in pre-paid voice in the home, we are simplifying our messaging to broaden the appeal of our compelling high quality value-priced offer. The magicJack device and mobile app appeal to virtually anyone looking for high quality voice at the lowest price. magicJack's refreshed brand and value proposition, combined with an established customer base and pioneering leadership in the VoIP space, provide a valuable platform for continued growth."

Since its launch in 2007, magicJack has enabled consumers to drop their high-cost fixed line phone service and replace it with a value-priced pre-paid package. By doing some simple calculations, customers can save hundreds of dollars a year (depending on the current provider) by switching from traditional phone operators or other voice providers to magicJack's simple $29.95 one-year plan. The savings add up even more with magicJack's 5-year plan, providing unlimited local and long distance calling to anywhere in the U.S. and Canada for $99.95 or just $1.66 per month.

magicJack won the 2013 Frost & Sullivan Consumers' Choice Award based on quality, value, and ease of use. The new campaign is designed to reflect the spirit of this award and the attributes magicJack customers appreciate most: high quality voice and value-priced service.

As the Company expands its international and U.S. distribution footprint, the new "Do the Math" campaign offers a clear shift from the type of direct response, primarily TV-centric, advertising the company has delivered in the past into the social and digital space. This allows the Company to broaden the awareness and appeal of the magicJack product to new customer segments.

The magicJack "Do the Math" campaign is running in both English and Spanish on television and SiriusXM Radio, Pandora, and Facebook, among others. magicJack will also support the campaign through aggressive social media outreach; including the introduction of the hashtag #magicMath across the Company's Facebook, Twitter, LinkedIn, Pinterest and Vine social media channels. The Company is partnering with agencies SocialDeviant for social media, and White + Partners for strategic media planning and buying.

magicJack is sold through leading retailers such as Radio Shack, Walmart, Best Buy, Target, CVS and Walgreens as well as at magicJack.com.

About the magicJack Service

Millions of consumers have replaced traditional landlines with magicJack, saving hundreds of dollars per year depending on the current provider. The magicJack service allows users to keep their existing phone number and utilize a home or office Internet connection, with or without a computer. The magicJack PLUS device costs $49.99 and includes six months of phone service with additional service billed at $2.50/month for one year or $1.66/month for 5-year plans. The low monthly price includes unlimited local and long distance calls to the U.S. and Canada, unlimited international calls to the U.S., unlimited magicJack-to-magicJack calls worldwide, free Wi-Fi calls with the magicJack app, free voicemail, caller ID, directory assistance, call waiting - all with no contracts.

About magicJack VocalTec Ltd.

magicJack VocalTec Ltd. (Nasdaq: CALL), the inventor of the magicJack and the industry's original VoIP (voice over IP) service in 2007, is a leading cloud communications company. With its easy-to-use, low cost solution to telecommunications, the Company has sold more than 10 million award-winning magicJack devices, now in its third generation, and has the use of more than 30 technology patents. 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.

MEDIA CONTACTS:
LPI Communications for magicJack
Leasa Ireland / Brad Shewmake
310-750-7082 or 858-735-8748
leasa@lpicommunications.com
or
INVESTOR RELATIONS CONTACT:
magicJack VocalTec Ltd.
Seth Potter, 561-749-2255
ir@vocaltec.com

Source: magicJack VocalTec Ltd.

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