To Customers and Friends of Ooma:

Ooma made exciting progress during 2009 and enters 2010 with strong momentum.  I’m pleased to report that during 2009 Ooma achieved record adoption rates and is now approaching 100,000 subscribers.  We ended 2009 with thousands of retail locations and launched the new Ooma Telo and Ooma Telo handset nation-wide.  We also proudly announced several new features slated for introduction in the first quarter of 2010, which helps to strongly position Ooma as “the smartphone for your home.”  2009 was indeed an exciting year for Ooma.

I want to give special mention to our newly announced Ooma PureVoice™  technology.  In the business world, Internet telephony is widely deployed and works quite well, but in the home it has traditionally suffered from poor or variable voice quality.  Ooma PureVoice is a breakthrough solution combining multiple advanced technologies so that even under suboptimal Internet conditions (for example when congestion occurs) you will continue to receive clear, high quality voice.  On top of this, when calling Ooma to Ooma with Ooma HD Voice, the voice quality is truly remarkable.  Please look for a demo of our superior voice quality which will be coming soon to our website.

While I am thrilled with the accomplishments and momentum during 2009, I also recognize the areas where we need to improve.  Number one on our list is still our customer support activity.  During 2009 we made several fundamental changes to our customer support activity and while we saw improvement, I am sorry to say we are not yet where we want to be.  I would like to express again that we truly care about making our customer support experience consistently strong and we will not stop taking actions and making improvements until we do so.

Here at Ooma our vision is to change the game in telephony by providing you with a new and completely different kind of product – a product that saves you money, provides you with a better voice quality experience and adds features that truly add convenience and productivity to your life. During 2009, the number one reason people told us they purchased an Ooma was due to a positive recommendation from friends or family. We thank all of you for your support and your constructive input which helps us to grow and serve you better. We intend to make 2010 another incredible year of growth and accomplishment.

Sincerely,

Eric Stang, CEO