magicJack Wins Consumer Electronics Vendor of the Year Award From RadioShack

WEST PALM BEACH, Fla. and NETANYA, Israel — magicJack VocalTec, Ltd., the Voice Experts and cloud communications leader that invented voice over IP (VoIP) and sold over nine million magicJacks®, recently announced that RadioShack® awarded magicJack as its Consumer Electronics Vendor of the Year. RadioShack was the first large retailer to carry the magicJack device enabling consumers to save billions of dollars. The magicJack was previously awarded the Most Innovative Product of the Year by RadioShack.

magicJack CEO Dan Borislow was particularly honored by the award, stating, "I started going to RadioShack as a very young boy over 45 years ago to ask and learn about electronic projects. As an inventor and gadget guy who wants the best, RadioShack is still one of my favorite stores to buy new innovative high quality products and educate myself by talking with their knowledgeable and helpful staff. RadioShack was the first large retailer to carry our products because they were nimble enough to make a decision and then put magicJack on their shelves very quickly. magicJack people take care of the details, working hard to keep its retailers happy, and most importantly magicJack has the largest ongoing short form 15 second ad spend in the United States and Canada supporting its retailers. I never dreamed when I was in elementary school that a company I would be in charge of would become Consumer Electronics Vendor of the Year from such a prestigious retailer with a 90 year history of excellence."

magicJack also announced it released its third quarter 2012 results for the period ending September 30, 2012 before the market opened on Friday, October 19, 2012. Following the release, magicJack hosted a conference call for investors at 10:00 a.m. ET.

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-K and 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., 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 nine 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. For more information, please visit www.magicjack.com