Newark, NJ - October 25, 2001 -- Net2Phone, Inc (NASDAQ: NTOP), a leading provider of voice and enhanced services to IP networks, today announced the Company has extended its relationship with Microsoft Corp. by providing Net2Phone's Voice over IP (VoIP) enhanced IP telephony network applications support for both the Windows Messenger feature of Windows XP and MSN Messenger. Net2Phone's new network architecture enables interoperability for both voice and voice-enhanced services through the incorporation of Session Initiation Protocol (SIP) infrastructure and will be available across its global IP network. Windows Messenger and MSN Messenger will be the first clients to provide user access to Net2Phone's new advanced network.

Net2Phone's update to Windows XP's real time communications feature, Windows Messenger seamlessly terminates Messenger-based calls from PCs to the public switched telephone network (PSTN). MSN Messenger also will support this updated PC-to-phone call support. Net2Phone will offer Windows Messenger users voice quality, quick call set-up time and simple connections to IP telephony PC-to-phone capabilities through its robust network. Additionally, Net2Phone's network is scalable to allow for the future delivery of voice-enhanced services, such as Internet call waiting and video-conferencing, among others.

Net2Phone was the first company to offer PC-to-phone service through MSN Messenger and has since routed over more than 800 million minutes of traffic for MSN customers. This PC-to-Phone service, available since July of last year, allows consumers to reach any phone number in the world through MSN's Messenger Service, which is now accessible to millions of MSN Messenger users.

"Integrating telephony throughout Windows XP via Windows Messenger will help bring Net2Phone's market leading telephony to even more users, enabling even more people to take advantage of the tremendous value of making PC-to-phone calls globally," said Dominick Tolli, Senior Vice President of Operations at Net2Phone. "We continue to foster the convergence and interoperability of many disparate infrastructures and technologies to make communications as seamless as possible."

"Windows XP and Net2Phone delivers the next-generation VoIP communication services to PC users all around the world," said, Chris Jones, vice president of the Windows Client Group for Microsoft Corp. "The Windows Messenger feature of Windows XP introduces a new era in personal communications services. These new PC-to-phone services contribute to new innovation and opportunity for the industry and new benefits for users."

SIP is the Internet signaling and call-control standard for real-time converged communications over IP-based networks. By enhancing its pioneering worldwide Voice over IP network to support SIP-based traffic, Net2Phone will be able to offer its users a range of enhanced communications services that can integrate voice, instant messaging, presence and the Web. Net2Phone is working with dynamicsoft Inc., a leading provider of carrier-class communications software for packet-based wireless and wireline networks, to enhance its global network to support SIP-based communications to provide revenue-generating enhanced services.

The update to MSN Messenger and Windows Messenger that supports this new PC-to-phone call service option, along with other usability improvements and new features, is scheduled to be available around October 25, via free Web download. Users of either Messenger client will receive a proactive notification of the updated client availability. Current users of the MSN Messenger PC-to-phone service provided by Net2Phone will be able to continue to enjoy the cost advantages and quality-of-service of the Net2Phone network or select the service provider of their choice to terminate these PC-to-Phone calls using either updated Messenger client from Microsoft.

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.