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CallWave Receives TMC Labs 2005 Innovation Award

30 July 2005

CallWave, Inc. (Nasdaq:CALL), a leading provider of VoIP enhanced services, announced today that Technology Marketing Corporation's TMC Labs division named CallWave's mobile VoIP service as a 2005 Innovation Award winner from INTERNET TELEPHONY magazine.

"It is an honor to have our mobile VoIP service recognized by the renowned TMC Labs," said David Hofstatter, President and CEO of CallWave. "At CallWave, we have found that the best path to innovation is to continuously pursue an intimate understanding of real end-user problems. After introducing Mobile Call Screening(SM) and Mobile Call Transfer(SM) late last year, we are now adding new VoIP enabled capabilities like Follow Me Home(SM), which allows cell phone users to receive cell phone calls on their home phones when their cell phones are turned off or are out of the coverage area."

"CallWave's Mobile Call Screening and Mobile Call Transfer have clearly demonstrated to the staff of TMC Labs that CallWave's services are truly innovative in the burgeoning VoIP/IP telephony industry. Never before in this industry has there been a greater need to highlight the most inventive VoIP products and services," said Rich Tehrani, Group Publisher and Editor-in-Chief of INTERNET TELEPHONY.

Tom Keating, CTO and TMC Labs Editorial Director, commented: "CallWave deserves this great honor for creating ground-breaking VoIP services. I look forward to seeing other innovative solutions from CallWave as they continue to contribute to the future of the VoIP/IP telephony marketplace."

The TMC Labs 2005 Innovation Award highlights are featured in the current issue of INTERNET TELEPHONY magazine and will also be published in the August, 2005 issue.

About CallWave Mobile Call Screening, Mobile Call Transfer and Follow Me Home

Mobile Call Screening allows users to listen to voice messages in real time and, if they choose, interrupt the message to take the call. Mobile Call Transfer lets users instantly transfer a live cell phone call to a home or office phone. With Follow Me Home, cell phone users can receive their mobile calls on a home or office phone when their cell phones are turned off, or when mobile network coverage is poor. Each of these features helps users stretch wireless minutes and improve call quality.

About TMC(R)

Technology Marketing Corporation (TMC) publishes two print magazines: Customer Interaction Solutions, and Internet Telephony; five digital publications, SIP Magazine, Speech-World, WiFI Telephony Magazine, VoIP Developer, WiMAX Magazine; and the online publications TMCnet.com, Planet PDA Magazine, WiFi Revolution, Alternative Power and BiometriTech. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC produces INTERNET TELEPHONY Conference & EXPO, The VoIP Developer Conference, Speech-World Conference, IP Contact Center Summit and The Global Call Center Outsourcing Summit. TMCnet.com publishes more than 25 topical online newsletters. For more information about TMC, visit its Web site at www.tmcnet.com.

About CallWave

CallWave (Nasdaq:CALL) is a leader in VoIP enhanced services for the consumer and small business markets. The company provides VoIP application services on a subscription basis that add features and functionality to both the landline and wireless telecommunications services used in mainstream homes and small offices. CallWave's proprietary VoIP software allows subscribers to get more out of their existing networks -- landline, mobile, and IP -- by adding software-based call-handling features, and by bridging all three networks to help subscribers get their important calls. Founded in 1998, CallWave is headquartered in Santa Barbara, California. For further information, please visit www.callwave.com.

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

Statements in this press release regarding CallWave, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Quarterly Report or Form 10-Q for the most recently ended fiscal quarter.