VoIP, Inc. Announces Strong Growth in Minutes Carried and Improved Operating Margins at VoiceOne Subsidiary

ORLANDO, Fla.--(BUSINESS WIRE)--VoIP, Inc. (OTCBB:VOII) announced today that its VoiceOne subsidiary generated a substantial increase in monthly minutes of use during the fourth quarter ended December 31, 2006 and for the month of January. Monthly minutes carried over the Network have increased by approximately 50 million since September, when the Company completed the initial expansion of its facilities based network, generating an additional $350,000 per month in recurring revenue. The Company has also increased its billable rate per minute by approximately 20%. As a result of the increase in traffic and improvements to the Network, the company has also reduced the cost of carrying the traffic by 26%.

“Since the new management team was appointed approximately five months ago, it has made significant progress in improving the Company’s operations, reducing operating costs and improving the balance sheet through the elimination of high cost debt, which has improved our cash flow by $234,000 per month,” said Anthony J. Cataldo, VoIP, Inc.'s Chairman and CEO. “Today, the Company is finally in a position to capitalize on its promising technology and growing relationships with leading Fortune 500 companies. The results we announced today reflect some of the progress we have made to date.”

The Company has significantly reduced costs through investments that it has made in its network. Recently, the Company completed the initial phase of its nationwide network infrastructure service through the expansion into additional locations in New York, Florida, Massachusetts and Georgia, which will enable it to service more than 50 million households and business subscriber lines. The expansion includes the build-out of the Company’s own facilities, which replace and expand uncovered areas in the U.S. This has enabled the Company to enhance market penetration, improve quality of service and reduce its overall cost of goods for products and services sold. Additional expansion is expected to continue throughout the year, ultimately enabling the company to offer services in 21 additional states thru use of its own network to more than 200 million subscriber and enterprise lines.

“For the first time in many years, VoIP has been in a position to invest in its network, resulting in a significant reduction in operating costs, while increasing network reliability and overall quality of service” said Shawn Lewis, VoIP, Inc.’s Chief Operating Officer. “Leading companies are increasingly selecting VoIP due to the quality of its services. Through the investments we have made and continue to make to expand our network and offer new services, we are now in position to support significantly greater traffic, and to continue to reduce costs through increased use of our network.”

About VoIP, Inc.
VoIP, Inc. is a leading provider of turnkey Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers worldwide. The company is also a certified Competitive Local Exchange Carrier (CLEC) and Inter Exchange Carrier (IXC). Through its wholly owned subsidiary, VoiceOne Communications, LLC, the Company provides a comprehensive portfolio of advanced telecommunications technologies, enhanced services, broadband products, and fulfillment services to the VoIP and related communications industries. Current and targeted customers include IXCs, CLECs, Internet Telephony and Conventional Telephony Service Providers (ISPs and ITSPs), cable operators and other VoIP Service Providers in the United States and countries around the world. The Company enables these customers to expand their product/service offerings by providing VoIP's nationwide Multi-Protocol Label Switching (MPLS) and other services such as voice termination/origination, e911 emergency call service for VoIP, CALEA, Broadband Voice, IP Centrex and other advanced communications services and technologies. For information on VoIP, Inc. please visit the company's web site: http://www.voipinc.com.

Safe Harbor Statements about the Company's future expectations and all other statements in this press release other than historical facts, are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words 'anticipate,' 'estimate,' 'expect,' 'intend,' 'plans,' 'projects,' and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.