“Net2Phone’s mission of delivering voice and enhanced services on IP networks is clearly demonstrated by our significant growth in minutes,” said Howie Balter, Chief Executive Officer of Net2Phone. “Just three months ago, we were routing 2 million minutes daily. Just yesterday, we routed close to 8 million minutes. This clearly illustrates how telcos, businesses, and consumers are moving towards IP as their primary source of communication - not just a tech toy. Our ability to handle mass quantities of traffic without sacrificing quality, network capacity, or customer service illustrates that we are clearly positioned to be the platform of choice for Internet calling worldwide.”

To meet the rapidly growing demand for voice and enhanced services over IP networks and facilitate additional growth, Net2Phone has announced plans to significantly expand its global infrastructure. To that end, Net2Phone is provisioning an OC-48 backbone around the U.S., giving the company the ability to route more than 50 times its current traffic.

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.