This Year, Give Kids a Cell Phone That Won't Break the Bank; CallWave Mobile Rewards Prepaid Cell Phone Lets Kids Earn Free Airtime and Helps Parents Control Phone Bills and Save Money

CallWave Mobile Rewards offers an affordable solution for parentswho don't want to sign an expensive, long-term cell phone contract fortheir children but still want a way to keep in touch with them. WithCallWave's pay-as-you-go phone, kids also learn how to manage theirminutes without the costly lesson of exorbitant overage charges. Theyeven earn minutes for getting calls: that's where the "Rewards" partcomes in.

How to Earn Rewards

No other prepaid phone offers a program like CallWave MobileRewards. Here's how it works: when someone dials your CallWave MobileRewards phone for the first time, you "earn" five free bonus minutes.If you get a friend or family member to sign up for CallWave MobileRewards, you earn 60 free bonus minutes, and your friend is rewardedwith 30 extra minutes of airtime as a special welcome to CallWaveMobile Rewards. You can automatically redeem up to 60 earned bonusminutes monthly, which are added to your phone on the next billingdate.

Exclusive "Minute-Saving" Features and Free Desktop Software

In addition to free in-network nationwide long distance, theCallWave Mobile Rewards phone delivers minute-saving featuresavailable only from CallWave. Unlike other prepaid phones, CallWaveRewards Phone minutes never expire, so you have no more lost minutes.CallWave even includes four cool ring-back tones. Key phone featuresinclude:

Call Preview

-- Why Kids Love It: Unlike other cell phones, CallWave Mobile Rewards lets kids listen to voice messages as they are being left and not waste their cell minutes on taking every call. They can hear why someone's calling and decide whether they should take that call. If they do want to chat with that caller, they can interrupt the message to jump into the conversation.

-- Why Parents Love It: The ability to "weed out" non-urgent cell phone calls helps kids save their prepaid minutes, which means that parents buy fewer minutes each month. Kids also learn the value of prioritizing their time.

Call Transfer

-- Why Kids Love It: Kids can instantly transfer a live cell phone call to their home phone, often the most convenient phone, which keeps them from running down their cell phone battery or using their prepaid minutes.

-- Why Parents Love It: Transferring the call off the cell network to the landline phone means kids aren't using prepaid minutes, saving their parents' money.

Follow Me Home

-- Why Kids Love It: If their cell phone is turned off, or they get poor reception at home, kids automatically receive their incoming mobile calls on a designated landline (i.e., their home phone), so they don't miss those important calls.

-- Why Parents Love It: Kids are easier to reach when the parents are away from home and parents save money at the same time.

Free PC Desktop Software

-- Why Kids Love It: They can be the first on the block to have personal desktop software to store and review cell phone voice messages, which they can even email to friends.

-- Why Parents Love It: A great parental control tool, the software allows parents to monitor their kids' voice messages, if they choose, by reviewing these messages conveniently over the family PC.

"The CallWave Mobile Rewards phone is a great way to add anaffordable family cell phone packed with features that help managecellular expenses year-round," said Adrian van Haaften, CallWave'schief marketing officer. "Kids are excited to have their very own cellphone with CallWave's cool features, and parents are thrilled thatthey can control how much they spend each month, knowing that theirpurchased minutes will last longer with minute-saving features likeFollow Me Home."

Pricing and Where to Buy

CallWave Mobile Rewards makes it easy and affordable to enjoy agreat, prepaid cell phone. As an introductory offer, customers get theCallWave Mobile Rewards phone free, with a one-time shipping andhandling fee of $9.95. The no-contract phone also comes with aninitial 60 minutes of airtime.

CallWave Mobile customers get free enrollment in the RewardsProgram, and the complete set of calling features is only 27 cents aday, billed monthly. Refill minutes are available for as low as 15cents per minute. Customers can also use the Automatic Minute Refilloption to automatically add minutes each month, or they can choose tojust pay as they go.

For more information or to purchase the CallWave Mobile Rewardsphone, please visit www.callwavemobile.com.

About CallWave

CallWave (Nasdaq:CALL) is a leader in VoIP enhanced services forthe consumer and business markets. The company provides VoIPapplication services on a subscription basis that add features andfunctionality to both the landline and wireless telecommunicationsservices used by mainstream consumers and businesses. CallWave'sproprietary VoIP software allows subscribers to get more out of theirexisting personal communications networks -- landline, mobile, and IP-- by adding desktop call management software and VoIP-basedcall-handling features, and by bridging all three networks to helpsubscribers get their important calls. Founded in 1998, CallWave isheadquartered in Santa Barbara, Calif. For further information, pleasevisit www.callwavemobile.com.

"Safe Harbor" Statement under the Private Securities LitigationReform Act of 1995:

Statements in this press release regarding CallWave Inc.'sbusiness, which are not historical facts are "forward-lookingstatements" that involve risks and uncertainties. For a discussion ofsuch risks and uncertainties, which could cause actual results todiffer from those contained in the forward-looking statements, see"Risk Factors" in the Company's Annual Report on Form 10-K for themost recently ended fiscal year.