magicJack builds on consumer market success to bring low cost, high quality VoIP to SMBs

West Palm Beach, Fla. and Netanya, Israel, June 28, 2016 – magicJack VocalTec, Ltd (Nasdaq:CALL), a leading cloud-based communications company, announced today the launch of magicJack for BUSINESS, a new internet phone service designed for small–to-medium sized businesses (SMBs). Built on one of the largest CLECs (Competitive Local Exchange Carrier) in the United States, and supported by the sale and global use of over 10 million magicJacks now in their third generation, magicJack for BUSINESS is an easy-to-use business internet phone system tailored to meet the unique needs of SMBs.

The feature-rich, flat rate offering was created for entrepreneurs and business owners who strive for the most reliable and clearest phone service possible to keep them connected to their customers, while keeping the cost low.

In addition to being easy to use and set up, magicJack for BUSINESS provides 99.99% connectivity uptime, offers a wide range of customizable business phone features and 24/7 US-based live customer support — all for one flat rate and at a fraction of the cost of standard phone and VoIP providers. With only a highspeed internet connection, businesses can have crystal clear VoIP with no dropped calls or outages.

“Our focus is to provide the most reliable fully featured phone service at an affordable price, so our customers can focus on growing and managing their business more efficiently,” said Keith Reed, Senior Vice President and General Manager at magicJack for BUSINESS. “We are entrepreneurs ourselves, so we understand what small businesses need to be successful. We are excited to bring this powerhouse solution to SMBs so they can enjoy the VoIP benefits of magicJack and keep their costs low without sacrificing quality. We are already seeing this materialize as we have onboarded our first paying customers.”

“magicJack for BUSINESS represents a new, organic revenue stream for the company which leverages our core assets, including our proprietary ultra-low cost termination structure and softswitch assets,” said Gerald Vento CEO of magicJack. “We believe we are well positioned to strongly compete for market share in the SMB VOIP category given Keith’s successful track record of building and scaling businesses focused on the SMB market.”

magicJack’s consumer products are trusted by more than a quarter million small businesses. With its new small business-focused offering, magicJack for BUSINESS delivers a number of key benefits:

Reliability: magicJack pioneered the first consumer VoIP (Voice over Internet Protocol) service and has continued to innovate to offer the most reliable connection and clearest sound quality with better than 99.99% uptime and 24/7 live US based customer support.

Ease-of-Installation, Ease-of-Use, and Simplified Billing: magicJack for BUSINESS will port an existing number or assign SMBs a new one. Customers can choose from a range of IP phones that are easy to install in minutes. Bills are predictable, simple, and easy to understand.

Robust Business Features: A business class phone system with free conference bridge, music on hold, Do Not Disturb, extension dialing and more included in the flat monthly rate. To see a full list of features click here.

Scalability: magicJack can grow as a business grows, without locking customers into a contract. It is easy to add, reassign or remove lines.

magicJack for BUSINESS is available now. To learn more and order magicJack for BUSINESS, visit magicjackforbusiness.com or call 888-652-4976.

The company continues to expect 2016 revenues from the new SMB subsidiary be immaterial and project annualized exit revenues for 2017 in the range of $15-20 million, with double digit year-over-year revenue growth targeted for subsequent years. In addition, the company continues to target gross margins for the new SMB business subsidiary to be in the range of 65-70% and EBITDA margins to settle in the range of 20-25%.