New Orleans - Scientific-Atlanta, Inc. and Net2Phone today announced the companies have executed a memorandum of understanding to work together to develop new voice over Internet protocol (VoIP) and unified messaging applications that use Scientific-Atlanta's Explorer® digital set-tops and interactive network. This planned integration is intended to allow consumers to use broadband connections to place low-cost long-distance calls; access e-mail/fax alerts, call-waiting and caller I.D. functionality; and enjoy second-line voice service for the home. The two companies plan to conduct technical and commercial trials of this application by the end of the year.

Scientific-Atlanta and Net2Phone are demonstrating at the National Association of Cable Television (NCTA) Cable 2000 Show May 8-10 in Booth #2719, Hall C of the Morial Convention Center in New Orleans, how broadband operators can offer new services and generate new revenues through voice applications. Visitors to Scientific-Atlanta's booth are encouraged to place a phone call through a phone remotely connected to Scientific-Atlanta's digital interactive network, featuring the Explorer set-top. In addition, visitors to the demonstration will receive complimentary Net2Phone phone cards.

"Scientific-Atlanta's Explorer set-tops, using the IP network available today, are opening the door to a tremendous opportunity for cable operators to get into the voice business, from videoconferencing to low-cost long distance services," said Jim McDonald, CEO and president of Scientific-Atlanta.

"Companies such as Net2Phone are showing how the set-top can be used for advanced voice services, so consumers can enjoy a variety of convenient new features."

"This relationship clearly demonstrates the meaning of convergence," said Cliff Sobel, Chairman of Net2Phone. "Through this revolutionary relationship, Scientific-Atlanta will show how an entire subscriber base can connect phone systems to the Internet and communicate using Net2Phone's broadband telephony solution. Since Scientific-Atlanta has built its digital interactive set-tops and systems based on Internet protocol, its technologies provide an ideal platform for this breakthrough capability and alternative means of communications."

The transaction is subject to the execution of definitive agreements.

About Net2Phone Net2Phone Inc. (NASDAQ: NTOP) (www.net2phone.com) is a leading provider of voice-enhanced Internet communications services to individuals and businesses worldwide. Net2Phone enables people to place low-cost high quality calls from their computer, telephone, or fax machine to any telephone or fax machine in the world. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the web and other IP networks. For more information about Net2Phone's products and services, please visit www.net2phone.com.

About Scientific-Atlanta Scientific-Atlanta, Inc. (NYSE:SFA) (http://www.scientificatlanta.com) is a leading supplier of broadband communications systems, satellite-based video, voice and data communications networks, and of worldwide customer service and support.

"Forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, may be included in this news release. A variety of factors could cause Scientific-Atlanta's actual results to differ from the anticipated results expressed in such forward-looking statements. Investors are referred to Scientific-Atlanta's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-Q), which statements are incorporated into this news release by reference.

For Further Information: Peggy Ballard Stephen Brown Sarah Hofstetter Scientific-Atlanta Ketchum Public Relations Net2Phone 770-236-7871 404-287-2000 ext. 184 201-928-2882 770-331-3814 (mobile) 404-277-3467 (mobile) peggy.ballard@sciatl.com stephen.brown@ketchum.com sarah@net2phone.com

Explorer is a registered trademark of Scientific-Atlanta, Inc. All other products or brand names are trademarks or registered trademarks of their respective owners.

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