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Linksys Integrates Net2Phone Technology into Leading Broadband Router
Integration empowers broadband users with instant plug-and-play voice solutions

NEWARK, NJ and IRVINE, CA - January 8, 2001 --- Net2Phone® Inc. (NASDAQ: NTOP), a leading provider of voice and enhanced services on IP networks, and Linksys®, a leading manufacturer of broadband and networking hardware for the home, Small Office/Home Office (SOHO), Small/Medium Business (SMB) and enterprise markets, today announced that Linksys will apply Net2Phone’s Voice over IP (VoIP) technology into their popular Cable/DSL router. The new product, called the EtherFast™ Cable/DSL & Voice Router powered by Net2Phone® (BEFN2PS4), will give users an added benefit to their existing broadband Internet connections, empowering them with voice as well as data.  

The new broadband router includes Net2Phone Broadband Voice™ phone calling services as well as award-winning features including: 4-port switch, firewall security, IPSec pass thru, filtering, forwarding, DMZ hosting, logging, DHCP server and now speed dialing. Users will have networking capability, firewall security, Internet sharing and an additional outbound phone line (utilizing the cable or DSL line) all in one device. With the Net2Phone capabilities built into the router, users have an always-on dial tone to make outbound calls domestically or internationally anytime.

To make phone calls, plug in a traditional telephone, including cordless phones, into the RJ-11 phone jack port on the router, set up an account through the router’s easy web configuration process and then dial normally. Users can call any phone in the world at a low charge per minute. Users making outbound calls do not need to have the PC on, but can access their account online to track calls or determine minutes used or left on their account. This is truly a benefit for home or small business owners because it gives an additional free outbound phone line, without any set up charges, to make low-cost phone calls while also getting an Internet and resource-sharing device with security features.

Instead of hefty monthly fees associated with traditional phone lines, Net2Phone will only be charging per-minute rates for as low as 3.9 cents a minute, which will be approximately 50 percent less than traditional calling costs. Net2Phone and Linksys are also offering up to 160 minutes of FREE Internet phone calls when customers purchase the EtherFast Cable/DSL & Voice Router starting in late January or February for an estimated street price of $199.99 through US or Canadian retail stores, online resellers, distribution or direct response.

By voice enabling broadband networks, Net2Phone gains first-mile access to consumers and can offer top-quality voice services due to the high bandwidth and always-on connections available over broadband networks. Future offerings will include advanced voice services such as unified messaging, caller ID, and inbound calling. Net2Phone and Linksys are also working to add calling plans that support free voice-router to voice-router call capabilities.

This integration with Linksys router technology is part of Net2Phone’s strategy to become the underlying voice provider to IP networks around the world. Net2Phone has teamed with the leading companies in the broadband space to become the de facto standard for voice over broadband networks. This convergence is also part of Linksys’ strategy to have a complete and value-added line of broadband networking solutions that offer secure and high-speed data, voice, sound and video over the Internet.

“Embedding Net2Phone’s technology into our products adds great value, and transforms the broadband connection into an additional live resource to connect with people,” said Janie Tsao, Linksys Vice President of Business Development. “We want users to fully utilize their cable/DSL capabilities and our new Router powered by Net2Phone can give home users and small/medium businesses the additional ability to make clear and low cost or free phone calls using their broadband connection. It’s a step in making the broadband connection more than just high-speed data access to the Internet.”

“Our integration with Linksys allows us to increase both our customer base and minutes with user friendly services,” said Howie Balter, CEO of Net2Phone. “Consumers can now gain direct access to our network without the need to log onto a PC or dial extra digits. We believe that the ease of use associated with this new router will result in higher traffic and a faster take rate by consumers.”

Net2Phone and Linksys will be demonstrating the EtherFast Cable/DSL & Voice Router powered by Net2Phone at CES in Las Vegas this week at booth 7214 in the Las Vegas Convention Center.

Linksys is currently the lead seller of Cable/DSL Routers in the US owning about 55% unit Retail and 29% unit distribution marketshare (according to research firm, PC Data). The Linksys Cable/DSL Router line has also won Network Product of the Year 2000 from PC Magazine, Home Office Computing, buy.com and a finalist from MacWorld.

About Net2Phone®
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.

About Linksys®
Linksys, an award-winning leader in the development of networking and broadband networking solutions for the home, Small Office/Home Office (SOHO), Small/Medium Business (SMB), and enterprise environments, has been the number-one manufacturer of networking hardware in the retail channel for nearly four years - currently owning 30% of the market. Through this position, Linksys has become the fastest growing networking hardware manufacturer in the distribution channel and the lead seller of networking hardware online through E-tailers. Linksys products emphasize speed, affordability, reliability, ease of installation and widespread compatibility and are sold through leading master distributors, computer resellers, direct response and E-commerce and retail stores worldwide. For more information, visit the Linksys web site at www.linksys.com, email at sales@linksys.com or call toll-free 1-800-LINKSYS (546-5797).