Compaq To Bundle Net2Phone’s Yap Phones In New Presario Computers
Enhancement to Internet phone calls available to Compaq customers

Newark, NJ - October 11, 2000 -- Net2Phone (NASDAQ: NTOP), a leading provider of voice enabled IP services, today announced that Compaq (NYSE: CPQ) will bundle its YAP Phones with new Compaq Presario computers. 

The YAP Phone (retail value: $54.99) will be included with new Compaq Presario Computers at computer superstores nationwide or online at www.compaq.com. The YAP Phone is a telephone handset that plugs into the USB port on users’ computers and is designed to facilitate clear Internet calling. As a special offer with the Presario bundling agreement, the YAP Phone will come with up to 1500 free domestic Net2Phone talk minutes and will allow users to make free PC-to-PC calls using Net2Phone’s award-winning software.

“Compaq’s selection of the YAP Phone is another strong example of how YAP Internet Telephony products have been so quickly accepted into the consumer marketplace. This new alliance with Compaq strengthens the buildout of IP Telephony as the way for people to communicate,” commented Jonathan Rand, Executive Vice President of Net2Phone. “This further enhances Net2Phone’s strategy of delivering voice services to IP networks - by capturing consumers’ interest in Internet calling at the point of PC purchase, we can drive more minutes and services over our network.”

“Compaq is excited to be the first PC manufacturer to offer Internet telephony on their PC platform. Our relationship with Net2Phone goes back over a year when we were first to offer Net2Phone services bundled on Presario keyboards sold to our international customers,” said Mark Vena, Director of CTO Marketing for Compaq Computers. “We look forward to expanding our relationship with Net2Phone even further in the future.”  

YAP products are designed to enable a wide range of users to easily make Internet phone calls. All YAP products include Net2Phone’s minutes, software and technology, and will terminate calls to any telephone, PBX, fax machine or multimedia Internet-connected PC in the world. The YAP Phone is part of Net2Phone’s line of innovative YAP Internet Telephony hardware solutions. YAP Phones, Headsets and Jacks are available in computer superstores such as CompUSA and Office Max.

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.