Newark, NJ - October 23, 2001 -- Net2Phone, Inc. (NASDAQ: NTOP), a leading provider of voice and enhanced services to IP networks, announced today that current shareholder, IDT Corporation (NYSE: IDT and IDTB), would lead a consortium that would concentrate ownership of approximately 49% (60% of the voting power) of Net2Phone. The consortium consists of IDT, Liberty Media Corporation (NYSE: LMC.A and LMC.B) and AT&T (NYSE: T), resulting in significant economic stakes in Net2Phone for all three parties.

IDT and AT&T contributed their shares of Net2Phone (approximately 10 million and 18.9 million respectively) to a newly formed Limited Liability Company (LLC). Liberty then acquired a substantial portion of the LLC's units from AT&T, while IDT increased its stake and AT&T retained a significant interest. IDT will be the managing member of the LLC. The transaction was designed to maximize the value of Net2Phone.

Net2Phone President Stephen Greenberg commented: "The transaction will provide Net2Phone with an opportunity to work much more closely with two of the industry's leaders. IDT and Liberty Media have been tremendous drivers of innovation in the industry. From Jonas' long-distance phoning advances to the birth of Net2Phone to Malone's focus and advances in the cable industry both here and abroad, we are excited by the potential new and expanded opportunities their involvement will bring the company. This combination of interests and the support it will provide gives us a greater opportunity to execute our business plan and improve shareholder value."

Howard Jonas, Chairman of IDT, commented: "We are very excited about this transaction. We all share a vision of convergence - convergence driven by the flexibility and scalability of IP technology. We see exciting opportunities across technologies and media and entertainment platforms. From VoIP over broadband and positioning Net2Phone as a leading provider of phone services in the home to virtually any other service that we envision VoIP enabling, we look forward to leveraging our respective assets and relationships to continue to position Net2Phone at the nexus of this fast-approaching convergence. We believe that the consolidation of interests of IDT, Liberty Media and AT&T positions us to maximize the value of all of our Net2Phone investments."

ABOUT NET2PHONE
Founded in 1995, Net2Phone is a leading provider of voice and enhanced services over IP networks to consumers, businesses and carriers worldwide. With millions of users around the world, Net2Phone enables toll-quality calls between computers, telephones, and broadband devices utilizing IP networks. Recognized as the first company to bridge the Internet with the public switched telephone network, Net2Phone has routed more than 1.5 billion minutes of traffic over its award-winning network. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include AT&T, America Online, and Yahoo!. Net2Phone also offers enhanced hosted service solutions, including voice recognition, for businesses around the world. For more information about Net2Phone's products and services, please visit www.net2phone.com.