Hackensack, N.J. and Englewood, Colo. - July 24, 2000 --- Net2Phone Inc. (NASDAQ: NTOP), a leading provider of voice-enhanced Internet communications services, and Rhythms NetConnections Inc. (NASDAQ: RTHM), an international provider of broadband communication services, today announced plans to launch residential and business voice-over-Internet-protocol (VoIP) services utilizing high-speed digital subscriber line (DSL) technology. A significant move in the much-anticipated voice services space, the deal will allow end-user customers in the U.S. to enjoy a fully functional voice line over their existing DSL connection.

The service will enable end users to plug their normal telephones into a Net2Phone IP device. The IP device then plugs directly into the DSL modem. Upon installation, end users can make and receive direct-dial phone calls to any regular or IP telephone in the world. Because the IP connection is both persistent and high-speed, quality of service is improved over traditional Internet voice transmissions.

Under terms of the agreement, Net2Phone will provide Rhythms with a complete IP voice package, including hardware, services, billing and customer service. In turn, Rhythms will market the Net2Phone package to its channel partners, which include Internet service providers (ISPs), telecommunications carriers and broadband communication services resellers. The companies are conducting technical trials of the integrated offering this summer, and plan to roll out IP voice services later this year.

"With this first-of-its kind joint service offering, end users will be able to get the most out of their always-on connection by using it as an additional phone line -- and enjoy the cost savings and value-added services that Net2Phone offers," said Howie Balter, CEO of Net2Phone. "We make it easy for Internet providers to resell Net2Phone’s services and to expand their communications service offerings so they do not have to make any capital investments in equipment or infrastructure. Net2Phone’s model allows providers to get in the business quickly and inexpensively."

"We are excited to partner with Net2Phone to offer our partners new voice services that allow them to take better advantage of Rhythms’ world class network," said Catherine Hapka, chairman and CEO of Rhythms. "Voice services are the critical next step to bringing blockbuster value to the end user, and we are pleased to be one of the first national broadband providers to execute on the delivery of those services."

By bundling Net2Phone’s services with Rhythms’ DSL products, Rhythms’ partners will be able to provide additional value to their customers -- low cost calling anywhere in the world, voicemail and find-me/follow-me services. Additionally, end users will be able to call between DSL phones for free, in effect, creating a virtual community of IP voice users.

About Rhythms
(http://www.rhythms.com) Rhythms NetConnections Inc. (Nasdaq: RTHM) provides DSL-based, broadband communication services to businesses and consumers. Based in Englewood, Colo., Rhythms currently serves 55 markets, covering 92 metropolitan statistical areas (MSAs). Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at www.rhythms.com .

About Net2Phone
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 www.net2phone.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, among other things, Net2Phone's expected operating performance for the three months ending July 31, 2000 and thereafter. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet telephony industry, and Net2Phone's ability to operate the services described on a large scale commercial level. The forward-looking statements are made as of the date of this press release, and Net2Phone assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth herein and the other information set forth from time to time in Net2Phone's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks. These risks include risks associated with the demand and competition for the services and products to be sold by Rhythms, the continued availability of adequate financing to support our activities, the timing of rollouts in additional regions, the number of potential customers who could access such services, and our dependence on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment. For an expanded discussion on these and additional risks associated with Rhythms' business, please see the documents filed by Rhythms NetConnections Inc. with the U.S. Securities and Exchange Commission.