Hackensack, NJ./San Diego, Calif.--Dec. 13, 1999--
Net2Phone Inc. (NASDAQ: NTOP) and Qualcomm Incorporated (NASDAQ: QCOM) today announced that they have signed an agreement whereby Qualcomm will market Net2Phone's Internet telephony services through its award-winning Eudora® email software. The marketing agreement covers both retail and online distribution of Eudora.

Qualcomm will bundle Net2Phone's V.10 software in the Eudora box at retail and will feature Net2Phone as a sponsor of the company's new sponsor-supported version of Eudora. Users who download this new version of Eudora receive the full email client at no charge. The software displays sponsor messages in the lower left corner of the interface in a manner that is respectful of the work users are doing in email.

Net2Phone V.10 is an all-inclusive Internet communications software solution enabling free PC-to-PC calling, ICQ buddy PC-to-PC calling, PC-to-Fax and VoicEmail in addition to the company's flagship PC-to-phone service. Customers only pay for calls that terminate on a telephone or fax machine. Users can save up to 95% off their international phone bill by routing calls over Net2Phone, and can also make U.S. toll-free calls from anywhere in the world.

Qualcomm also will include a co-branded Eudora Calling Card, powered by Net2Phone, in the Eudora box. The calling card allows users to place calls and send faxes over Net2Phone's IP network to virtually anywhere in the world at reduced rates. Net2Phone will handle the entire back-end operation, including the rating, routing, authorization, customer service, and web site development, while Qualcomm will market the product to its Eudora customers.

``We look forward to enhancing our customers' experience by adding the voice component to their online communications,'' said Jeff Belk, vice president of Qualcomm and general manager of Eudora Products. ``We are committed to providing our customers with value-added top-quality services, and we believe this relationship will help us further that commitment.''

``Net2Phone is happy to provide Eudora users with our leading Web communications voice solution,'' said Yonah Lloyd, vice president of business development for Net2Phone. ``Qualcomm's products, particularly Eudora email software, have received high acclaim worldwide, and we hope that Net2Phone's integration into Eudora's marketing will add value for customers who buy or download this excellent software.''

Net2Phone 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. For more information about Net2Phone's products and services, please visit www.net2phone.com.

Eudora, the world's premier email management client software, has garnered more than 70 industry awards and honors since it was first released commercially in 1993. Eudora is known for combining ease of use with extensive message management features that allow users to take control of their email. Today, there are more than 20 million Eudora users worldwide.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; Eudora email software for Windows® and Macintosh® computing platforms; and satellite-based systems including OmniTRACS® and portions of the GlobalstarT system. Headquartered in San Diego, Calif. f.Cali Qualcomm is included in the S&P 500 Index and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM.

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 October 31, 1999 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.

Qualcomm, Eudora, Eudora Pro, Eudora Light, PureVoice and OmniTRACS are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc All other trademarks are the property of their respective owners.

Sarah Hofstetter
Vice President, Corporate Communications
Net2Phone
201-928-2882
sarah@net2phone.com