Skype Takes Internet Communications One Step Further With New Pricing Strategy

Disruptive pricing gives Skype users more value and choice.

LUXEMBOURG, January 18, 2007 – Skype, the global Internet communications company, today announced its new global pricing structure which offers a simple, convenient and cost-effective way for consumers worldwide to call landlines and mobiles over the Internet. The new pricing structure complements the foundation of Skype’s success in letting anyone in the world talk for free, from one Skype software account to another.

The pricing structure is the latest in a series of new steps Skype is taking to give consumers a choice of easy-to-understand, value-based Internet communications packages. Initially focused on Europe, Skype’s new pricing strategy will roll out worldwide during 2007.

When launched in full, the pricing strategy consists of a premium subscription package (Skype Pro), one feature of which removes per-minute charges for SkypeOut calls to domestic landlines and includes a small connection fee.

“People like using Skype to make free calls from one Skype account to another but more and more they are choosing our paid for products that offer excellent value. As a result of this, we’re introducing a new pricing strategy today that will include a premium package. This premium package builds on the success we’ve had in North America and the UK with subscription-based calling promotions. It offers our users more for less because they can buy additional Skype paid for products but for a smaller cost,” said Stefan Öberg, General Manager, Skype Telecoms.

As a part of Skype’s premium package the global dialing rate to a number of countries is also reduced. The first phase of the SkypeOut pricing structure, effective from 13.00 CET on Thursday January 18th 2007, includes a reduction in global dialing rates to 0.017 € per minute for: Czech Republic (including Prague), Guam, Hungary (including Budapest), Israel (including Jerusalem), Luxembourg, Malaysia (including Kuala Lumpur), Puerto Rico and both Alaska and Hawaii in the United States.

For some countries, this represents a reduction of up to 65 per cent.

Skype also confirmed today that its previously announced connection fee rates, applicable worldwide, are now effective. The connection fee is a straightforward set-up charge per call. The Skype Unlimited Calling plan in the U.S. and Canada and the Talk for Britain campaign in the UK do not include a connection fee for national calls.

The connection fee is 0.039 Euro, excl VAT or the equivalent in local currency.

Today Skype users around the world can make free voice and video calls to any other registered Skype users as well as send instant messages, transfer files and participate in Skypecasts which are live moderated conversations with up to 100 people.

Skype users can also take advantage of Skype’s premium calling features, including SkypeOut™ (calls from Skype to traditional landlines or mobiles), SkypeIn™ (a number which can be called from a normal phone anywhere in the world) and Skype Voicemail (takes calls when users are busy or offline).

As the world’s largest Internet communications community, Skype is committed to giving its users the ability to set their conversations free at home, at work and on the move. It is focused on further developing its ecosystem of more than 50 hardware partners and more than 150 Skype-certified devices to broaden the appeal of Skype to a wider base of users who want to use Skype away from the PC, no matter where they happen to be. This is especially true for Skype users who want to take advantage of the mobile Skype experience, which is already accessible to more than 5 million Skype users on over 120 different Windows Mobile Smartphones and pocket PC devices.

For more information, please go to http://www.skype.com/products/skypepro/

Connection Fee Rates Rates Based on Currency* (excl. VAT)

• Australian Dollar (AUD) 0.059
• Brazilian Real (BRL) 0.09
• British Pound (GBP) 0.029
• Canadian Dollar (CAD) 0.059
• Danish Krone (DKK) 0.29
• Euro (EUR) 0.039
• Hong Kong Dollar (HKD) 0.39
• Japanese Yen (JPY) 4.9
• Norwegian Krone (NOK) 0.29
• Polish Zloty (PLN) 0.149
• Korean Won (KRW) 49
• Swedish Krona (SEK) 0.39
• Swiss Franc (CHF) 0.059
• Taiwan Dollar (TWD) 1.6
• US Dollar (USD) 0.039

*If your currency is not listed, the Euro rate is applicable

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