Stephen Greenberg joins the company to oversee this newly expanded department to manage company’s rapid growth, investments, new ventures, and international expansion

Newark, NJ - August 25, 2000 --- Net2Phone Inc. (NASDAQ: NTOP) today announced that it has formed the Office of the President to manage the company’s robust growth as well as its recent investments and expansion efforts.

Stephen Greenberg, special counsel to Net2Phone, will head the Office of the President, and will staff the department under Howie Balter, CEO of Net2Phone and Cliff Sobel, Chairman of Net2Phone. Mr. Greenberg, who has worked closely with Net2Phone since its Initial Public Offering in July 1999, was instrumental in consummating AT&T’s 32% investment in the company as well as other major strategic agreements. Mr. Greenberg brings 34 years of legal and corporate experience to the Company.

The Office of the President will manage Net2Phone’s rapid expansion into online and offline markets as the company continues to focus on areas of growth. Additionally, the Office will manage the company’s recent strategic investments, including those in SpeechWorks and Webex, who have recently seen successful public offerings.

Jonathan Fram, who has been with the company for one year, has accepted a CEO position with another company on the West Coast.

Net2Phone, Inc 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. Net2Phone's strategic investors include Softbank, America Online, GE/NBC, and Yahoo!. Additionally, AT&T has acquired a 39 percent voting stake in Net2Phone. 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 October 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.