VocalTec and YMAX/magicJack Announce Merger

By Vocaltec Communications Ltd., PRNE
Thursday, July 15, 2010

Combined company has the use of over 30 patents or patents pending

NETANYA, Israel and WEST PALM BEACH, Florida, July 16, 2010 - VocalTec Communications Ltd. (Nasdaq: VOCL), the inventor of VOIP
including the softphone, and YMAX Corp., the creator of magicJack and other
products and services have successfully merged and will be traded on the
Nasdaq under the symbol (NasdaqGM (Global Markets): CALL). VocalTec stock
will seize to be trading using the symbol (NasdaqCM:VOCL) after close of
business today July, 16th 2010. It will commence trading using the symbol
(Nasdaq: CALL) on Monday, July 19th, 2010. The parties believe that the
combined company has an enterprise value of US$245 million and a per share
value of at least US$17.50 on Monday, July 19th, 2010 on a stock split
adjusted basis. The previous holders of VocalTec will have 1,173,294 shares
of common stock following the merger. VocalTec expects to have revenues
ranging from US$110 million to US$125 million this year. With over US$40
cash/securities on hand and no debt, VocalTec expects to show a
profit in the current quarter. For additional information on this
announcement we recommend that investors read the entire press release and
the VocalTec (Nasdaq: VOCL) press release describing the stock split and
review the form 6-K filing with the Securities and Exchange Commission that
we expect to be filed on or before Monday, July 19th, 2010, described below.

The combined companies have the use of over 30 patents, some dating to
when VocalTec invented VOIP. In the current legal world we live in, this
protection is crucial. The company believes that its patents, technology, and
inventions are prior art to other existing patents and may also expose patent
invalidity. The combination of patents and softphone/softswitch technology
were the primary drivers of the merger. The combined company is much stronger

YMAX brings the success of the magicJack in the form of brand equity,
distribution and advertising across many outlets and over 6,500,000
magicJacks sold since 2008. The largest reaching CLEC (Competitive Local
Exchange Carrier) in the United States in terms of area codes available and
certification in number of states, it has its own chip development and
application server/softswitch company. VocalTec also adds softswitch,
application servers and the softphone to the mix. The combined company will
have cost reductions through different synergies.

VocalTec's advantages over its competitors, including Skype, include:

    1. A softphone, sharing a user's favorite numbers, available across many

       a. A computer
       b. A computer with a magicJack connected enabling the use of a regular
          telephone (corded or portable) with the ability to be the second
          line in a house or the primary number
       c. A computer with a femtocell-enabled magicJack allowing calls from a
          user's cell phone to go through a home computer and achieving
          superior call quality in your house while saving valuable cellular
          plan minutes (to be available later this year)
       d. Via mobile applications on iPhone(R) and iPad(TM) mobile digital
          devices and mobile devices running the Android(TM) and
          Blackberry(R) mobile technology platforms (beta versions today,
          formal release in Q4 of 2010)

    2. Free phone numbers given out to all our customers and easily dialed
       from any telephone
    3. Free telephone services for magicJack to magicJack calls
    4. Free telephone calls from our softphone users to anybody in the U.S.,
       Canada, Puerto Rico and Virgin Islands
    5. Underlying network carrying these calls is a dedicated telephone
       network with over 130 very powerful servers, session border
       controllers and application servers. This network has proven to have
       99.99% uptime in the last year
    6. Free voicemail, directory assistance, and local and long distance
       calling in the U.S. and Canada
    7. User contacts stored on our network so where ever they might use the
       softphone, the contact list will be downloaded to the app
    8. We believe we have the best VOIP call quality using in the U.S.
    9. magicJack received the 2009 Most Innovative Product of the Year award
       from RadioShack(R)
    10.The ease of use of the magicJack and softphones particularly when

Ido Gur, who will remain in charge of VocalTec's Israeli operations,
states, "I am excited about the potential to become the worldwide, leading
provider of VOIP and softphone applications using SIP. I strongly believe
that the synergies enabled by this business combination will allow us to
achieve this target. I trust the leadership and of Dan Borislow to make this
a reality."

Following the merger, a total of 11,736,189 shares are outstanding. The
company has included a discussion of future operating results in the press
release in connection with its announcement of the merger. The company does
not intend to update these statements or provide additional future guidance.
The company encourages potential investors to read the Form 6-K filed in
connection with the merger and available at www.sec.gov.

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 enterprise value, estimated value per share strategy, future operations,
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 integration of the businesses of VocalTec
and YMax; potential adverse reactions or changes to business relationships
resulting from the announcement or 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 the Form 6-K filed 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.

Skype(TM), associated trademarks and logos and the "S" symbol are
trademarks of Skype Limited.

iPhone(R) and iPad(TM) are registered trademarks of Apple Inc.
Android(TM) is a trademark of Google Inc. Use of this trademark is subject to
Google Permissions www.google.com/permissions/index.html .

The Trademark BlackBerry(R) is owned by Research In Motion Limited and is
registered in the United States and may be pending or registered in other
countries. VocalTec, YMAX and magicJack are not endorsed, sponsored,
affiliated with or otherwise authorized by Research In Motion Limited.

RadioShack(R) and The Shack(R) are registered trademarks of RadioShack

VocalTec Communications Ltd., +1-512-382-8988, vocaltec at ink-pr.com

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