NEWARK, NJ - December 18, 2001 - Net2Phone Inc. (NASDAQ: NTOP), the leading provider of voice and enhanced services on IP networks, and Telecom Argentina USA, Inc. a wholly owned subsidiary of Telecom Argentina S.A. (NYSE: TEO), one of Latin America's largest carriers, today announced the interconnection of their respective networks.

Telecom Argentina will use Net2Phone's worldwide Voice over IP (VoIP) network to route calls from North, South and Central America to destinations throughout the world. By establishing direct facilities with Telecom Argentina, Net2Phone can provide Telecom Argentina with access to routes worldwide and facilitate the use of Net2Phone's next generation of value added Internet-based communications services while avoiding capital-intensive network build outs.

Similarly Net2Phone will be using Telecom Argentina's Latin American network and worldwide presence to carry some of its traffic. As Net2Phone continues to expand its Voice of over IP network and host of services, it will now also benefit from Telecom Argentina's extensive network and unsurpassed expertise in one of the fastest growing telecommunications markets in the world.

"Net2Phone provides us with flexibility, scalability, and cost efficiencies that are unparalleled in the telecommunications field," said Enrique Scotto, Chief Operation Officer of Telecom Argentina USA. "Their quality of service, speed to market, and technological lead made Net2Phone the easy choice when it came to selecting a Voice over IP provider."

"Telecom Argentina has a long history of providing quality services to their customers, and we are delighted that they have selected Net2Phone as their provider of flexible transit solutions," said Kenny Helfer, Vice President of Carrier Services for Net2Phone. "Our Voice over IP solutions provide carriers with turn-key solutions for global termination at reduced rates with high efficiencies and quality, and we embrace the opportunity to fill the demands of global carriers such as Telecom Argentina. Likewise the high quality and competitiveness of Telecom Argentina's routes is critical in this region and an asset to Net2Phone."

Net2Phone's fully redundant carrier-grade gateways connect to legacy telephony devices via T1, E1 or analog interfaces. By utilizing Net2Phone's existing Least Cost Routing capabilities, Net2Phone provides efficient toll quality audio, and can terminate calls to anywhere in the world at reduced costs.

About Telecom Argentina USA
Telecom Argentina USA is a wholly owned subsidiary of Telecom Argentina S.A. , a leading telecommunications group in Argentina with 2000 net revenues of US$3.2 billon, net income of US$271 million. where it offers by itself or through its controlled subsidiaries local and long distance basic telephony, cellular, data transmission, and Internet services, among other services. Additionally, through controlled subsidiaries the Telecom Group offers various products and services in foreign markets. It recently opened a corporate office in the U.S. as part of its global strategy to expand its state of the art IP Backbone through out North America, and to establish itself as the leading traffic hub to the Americas.

About Net2Phone
Founded in 1995, Net2Phone is a leading provider of voice services over IP networks to consumers, businesses and carriers worldwide. With millions of users around the world, Net2Phone enables toll-quality calls between computers, telephones, and broadband devices utilizing IP networks. Recognized as the first company to bridge the Internet with the public switched telephone network, Net2Phone has routed billions of minutes of traffic over its award-winning network. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media, AT&T, America Online, and IDT. 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Report and in the Company's other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.