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Press Release -- December 28th, 2012
Source: magicJack VocalTec

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, news, filings) (the "Company"),
the Voice Experts and cloud communications leader that invented voice
over IP (VoIP) and sold over ten million magicJacks(R), 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 estimates
increased based on lower telecom expenses, higher receipts and a
reduction in legal, advertising, media and other expenses. 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

Although the Company typically focuses on GAAP 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 fraction of
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 possibly better 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

magicJack CEO Dan Borislow stated, "Our results for 2012 will exceed
expectations. We leave the year with little litigation and having added
important 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 special shout 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-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(R) 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

CONTACT: Kari Hernandez, INK for magicJack

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