The overwhelming success of MSN’s integration of Net2Phone’s domestic PC-to-phone service was a catalyst to extending this offering beyond US calling. Since its launch in July, more than 230 million minutes, and 44 million calls terminating on US phones have been routed over Net2Phone’s network through the MSN integration.

MSN Messenger users can now easily call any phone worldwide. With the click of the “Call” button on MSN Messenger’s client software, users can call any telephone, regardless of whether or not they’re online or even an MSN customer. In addition, customer access to the service has never been easier. Net2Phone’s client software is embedded into the MSN Messenger software, so there is no need to download additional software in order to place telephone calls from MSN Messenger.

When users download and open the new MSN Messenger Service, they will have many options to communicate, two of them being the ability to call a buddy on his computer or telephone. Users can choose to list as many of their telephone numbers as they wish in their profiles (for example, home number, business number, mobile number), allowing their buddies to contact them wherever they are anywhere in the world.

With more than 18 million users, MSN Messenger Service is the easy-to-use Internet messaging service that provides consumers with instant and private contact with their friends, family and colleagues. It provides the ultimate way to communicate with others, puts users in control of their communications and is simple and fun to use. Users can download the latest version of MSN Messenger at messenger.msn.com.

“We're excited by the introduction of international phone calling from MSN Messenger and Net2Phone. MSN continues to bring solutions to consumers worldwide that make MSN their home on the Web,” said Deanna Sanford, MSN Lead Product Manager at Microsoft, Corp. “With more than 44 million calls in just 90 days, MSN and Net2Phone working together have expanded the PC-to-phone capabilities of MSN Messenger that excite consumers.”

“Net2Phone has become the standard for voice on the Internet due to its technology, brand, distribution, and scalability - all epitomized in this relationship with Microsoft,” said Howie Balter, CEO of Net2Phone. “By infusing MSN Messenger with voice and extending this offering beyond the US, we can offer MSN users added value of global calling.”

Net2Phone, Inc delivers voice and enhanced services to IP networks 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 January 31, 2001 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.