Wave Issue 0501 1/7/05 Article 4-01

***VTech Partners With Skype to Launch First U.S. Cordless Phone
for Free Global Telephony

Consumer Electronics Show

LAS VEGAS
Jan. 4, 2005

VTech Communications, Inc., has introduced the usb7100 VTech
Skype cordless phone that provides users the benefits and
features of Skype's Internet telephony without being tethered to
their PC.

Skype is a free Internet telephony software that offers a peer-
to-peer network connection to make free voice calls to anyone in
the world. Users connect to both their existing telephone line
and Skype's free Internet telephony service from VTech's "all in
one" handset, which enables them to place and receive free,
unlimited global voice calls.

The 2.4 GHz cordless usb7100 phone is expandable up to four
handsets, providing crystal clear calling over the Internet from
any room in the home without the need for extra wiring. In
addition, users will enjoy all the advantages of cordless phone
technology, including caller ID, call waiting, intercom and
conference call features. Users can also view on the cordless
handset display which contacts are online, as well as being able
to set a presence status, for example, showing if users are
online, away or do not want to be disturbed. Finally, with each
call automatically encrypted by Skype, security is not a concern.

The VTech usb7100 is an affordable and logical solution for the
college student who can not always afford to call home often or
the family who is frustrated with their high phone bills.

VTech's usb7100 and other VoIP offerings are being featured
January 6-8, 2005 at Caesars Palace Hotel and Casino, Florentine
Ballroom, in conjunction with the 2005 Consumer Electronics Show
in Las Vegas. The products will be available in all major retail
outlets and online in Spring 2005.