According to Media Metrix, Net2Phone’s total US PC-to-phone active user base has nearly doubled since October while the user bases of Dialpad and Phonefree.com have declined sharply in the same time period (down 19% and 35% respectively). In December, Net2Phone had over 2 million unique visitors to its client and web site. Unique visitors have increased 49% since August. These numbers do not include the millions of users making calls over Net2Phone’s network through the MSN Messenger and Yahoo! Messenger services.

“Our continued growth in minutes, audience, and revenues clearly positions Net2Phone as the leader in voice enabling desktops around the world,” said Bryan Wiener, General Manager and Senior Vice President at Net2Phone. “Our consumer business is strong, and we plan on leveraging that expertise and user adoption to bring additional value-added services to consumers, businesses, telcos, and broadband providers globally.”

Much of the growth is due in part to Net2Phone’s offering of its inbound and outbound call management services, including free domestic PC-to-phone services in the U.S. and its new Internet Answering Machine powered by CallWave. Free PC-to-phone calling in the U.S. allows Net2Phone to generate additional high margin revenue from the up-sell of international phone services, cross-sell of enhanced services, and from the sale of advertising to premier blue chip advertisers. Net2phone has experienced double-digit growth in revenue from international PC2Phone calls since its upgrade in November.

Advertisers have also joined the Net2Phone Advertising Network since its inception in July 2000. Over 100 advertisers including CNET, Gateway, Hitachi, Microsoft and Schering Plough have signed on and have taken advantage of the network’s huge unique audience, precise targeting, some of the industry’s leading click through rates -- as high as 18% -- and strong back end conversion numbers.

Rene Jimenez, CEO of Internet Solutions whose clients include Intuit, Scottrade, MasterCard and Sears, added: "Net2Phone's audience is net savvy, has positive demographic characteristics, is immense in size and reach therefore making it the best online media buy value online."

Net2Phone also plans to roll out a suite of voice-enabled services over the next two quarters, which integrates value-added services such as telephone access to content, emails and personal address books as well as video services from the desktop.

A chart depicting usage according to Media Metrix is available for download and can be accessed directly at http://www.net2phone.com/corporate/graph/.

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.