Company's Patent Litigation Counsel Agrees to Accept Company Equity in Lieu of Cash, Ensuring Sustained Defense of Company's Patents

PHOENIX, Jan. 22 /PRNewswire-FirstCall/ -- Modavox, Inc. (OTC Bulletin Board: MDVX), Internet broadcasting pioneer and holder of several patented technologies, announced today that the Company has negotiated a modified fee agreement with its legal counsel, Shaub and Williams LLP in the matter of Modavox, Inc. v. Tacoda, Inc.

David J. Ide, Modavox Chief Executive Officer stated, "We're pleased that Shaub and Williams has voluntarily elected to receive equity in Modavox as consideration for their services in our ongoing patent infringement suit against Tacoda. This mutually-beneficial agreement serves the needs of management and our shareholders. By alleviating the cash outlay associated with this suit, we are able to allocate valuable cash resources towards additional growth opportunities. Aside from the current patent litigation, management, its bankers and its board continue to explore strategies that may leverage the resources offered with a national law firm should the company decide to further protect its Intellectual Property by targeting identified infringers. Our focus continues to remain squarely on creating value for our shareholders."

According to David Shaub, Shaub and Williams remains confident in both the validity of Modavox's patents and the importance of this proprietary technology in the sector of online commerce.

"We believe successful resolution of ongoing litigation will demonstrate both of these points and, at the same time, serve notice on the industry that Modavox intends to take all steps necessary to leverage fully its technology and its intellectual property to further its business goals," says Shaub.

For calendar year 2008, the company incurred approximate legal costs of $700,000 associated with the defense of its Intellectual Property. The company can not currently predict the amount of these costs going forward. Any company equity issued for future legal services will be valued at the current market price of the company's common shares on the date of issuance.

About Modavox

Modavox, Inc., the customized communications company, is a pioneer in Internet broadcasting, producing and syndicating online audio and video, offering innovative, effective, and comprehensive online tools for reaching targeted niche communities worldwide. Through patented Modavox technology, Modavox delivers content straight to desktops and Internet-enabled devices. Modavox provides managed access for live and on-demand Internet radio broadcasting, e-learning and rich media advertising. For more information, please visit www.modavox.com.

Forward-Looking Statements

This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties that could cause Modavox's actual results to differ materially from those currently anticipated, including the risk factors identified in Modavox's most recent 10-KSB filing and subsequent 10-QSB filings as well as other filings with the Securities and Exchange Commission. 

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SOURCE Modavox, Inc.