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CallWave Announces Distribution Agreement with Market Hardware Inc.

Market Hardware to offer CallWave's VoIP-based Mobile Call Management Software to its Small Business Customers

BETHESDA, MD - Sept 9, 2005 - CallWave, Inc. (NASDAQ: CALL), a leading provider of VoIP enhanced services, today announced a distribution agreement with Market Hardware Inc. to deliver CallWave's services to Market Hardware's small business customers. Market Hardware is a leading provider of websites and related services for small businesses. 

The partnership further advances CallWave's mobile distribution strategy announced earlier this year, and strengthens the company's lead in delivering value-added, VoIP-powered mobile services to key market segments.

CallWave's mobile software allows Market Hardware's small business customers to preview incoming calls "live" on their current cell phones while in the field, allowing them to take only those calls that matter and none that don't. Users can also instantly transfer those calls to a more convenient - and less costly - landline phone when in the office or at home. No additional hardware is required.

"CallWave's features would be ideal for anyone who has to spend a great deal of their day in the field managing multiple tasks," said Nick Gromicko, founder of the National Association of Certified Home Inspectors. "Market Hardware has consistently made great products available to our members, with solutions that are truly useful to the small businessperson." 

Market Hardware will market CallWave's services through Market Hardware's industry association relationships including its endorsed direct mail and association media advertising programs.

"We look for partners with strong distribution channels," said Josh Fraser, vice president, business development at CallWave. "Market Hardware has a successful approach with business associations that serve small, local businesses. It's a very good match."

About Market Hardware, Inc. 

Market Hardware is a leading provider of small business web marketing products and services built for specific industries. The company offers business associations and other partners a way to offer web marketing services targeted for their unique needs. With expert content and professional writing and design services, its flagship service, the Complete Website Package, makes it easy for home inspectors, general contractors, and other small service businesses to create and maintain a successful web marketing presence.

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 homes and small offices. CallWave's proprietary VoIP software allows subscribers to get more out of their existing personal communications 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, Calif. 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.

Media Contact:

Alain Parcan
301-263-7000