Secauces, N.J., May 30 -- If you're looking for low-cost, long distance calling, then Panasonic has a deal for you: up to three hours of free long-distance calls from Net2Phone on a totally new type of telephone.

In August, 2000, Panasonic will ship their new 1800 series 900MHz digital Spread Spectrum (SST) cordless telephones with one-touch access to the Net2Phone (Nasdaq: NTOP) Internet telephony network*. These cordless phones -- models KX-TC1801B, KX-TC1811B, KX-TC1851B, KX-TC1861B, KX-TC1866B/W, KC-TC1871B, KX-TC1886B and KX-TC1891B -- instantly connect the user to the Net2Phone service, helping to save money on long distance telephone bills by sending calls over the Internet.

These are the first telephones that can transmit both public switched and IP phone calls, allowing consumers a choice on the same phone between regular long distance phone service or low-cost Internet-based long distance service, simply by pressing a button on their phone.

Buyers of the above 1800 series phones instantly receive 60 minutes of free long distance calls via the Net2Phone service**. If the customer wishes to continue the Net2Phone service, they then gain another 120 minutes of domestic long distance calls, and receive a 3.9 cent per minute rate for all future calls in the U.S.+ Users will not need to subscribe to an Internet Service Provider in order to benefit from the service.++

"Over the past few years, Internet telephony has become a way of offering drastically reduced telephone rates to computer-equipped consumers," says John McNenney, Assistant General Manager, Panasonic Communications and Home Office Electronics Division. "Now this technology is available in select Panasonic telephones with the same long-distance cost savings and with a special limited-time promotion."

"This relationship signals the beginning of a new platform for communications using a conventional cordless telephone for Internet communications," said David Greenblatt, Chief Operating Officer of Net2Phone. "This gives consumers an easy-to-use low-cost alternative to long distance calling without the need to switch their long distance carriers."

Net2Phone 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 http://www.net2phone.com.

Panasonic residential communication products are marketed in the United States by Panasonic Consumer Electronics Company (PCEC), a division of Matsushita Electric Corporation of America (MECA). MECA is the principal North American subsidiary of Matsushita Electric Industrial Co., Ltd., (NYSE: MC; PCX) of Japan, one of the world's largest producers of electronic and electric products for consumer, business and industrial use. (Consumers seeking more information on the company's products can call Panasonic's Customer Call Center at 800-211-PANA or access Panasonic's home page at http://www.panasonic.com. Media interested in Panasonic press releases can gain information via the Panasonic Web site at Internet Keyword: Panasonic Press Room or through New Directions Public Relations' toll-free fax-back system at 888-734-7490.)

*   Net2Phone is solely responsible for this service and is in no way affiliated with Matsushita Electric Corporation of America (Panasonic).
** Promotion requires subscription to the Net2Phone service. Offer limited to new accounts only.
     Subscription to a separate long-distance account is not required. The recipient telephone need not be a subscriber
     of the Net2Phone service or be Net2Phone-equipped.
+   Rates are subject to change without notice. International rates are higher. Service available only in the United States
     based on the domestic rate of 3.9 cents per minute rounded up to the nearest minute.
++ Monthly service charge applies to all accounts. A debit or credit card charge of $25 is required for account set up.

SOURCE Panasonic Consumer Electronics Company.