NEWARK, NJ - January 18, 2002 - Net2Phone Inc. (NASDAQ: NTOP), the leading provider of voice services on IP networks, today announced that Norman Klugman, formerly of WorldCom Inc. and Trescom Inc., has been appointed to succeed Ilan Slasky as its Chief Financial Officer. Mr. Slasky led the search for his successor and intends to continue as Net2Phone CFO through the end of the third quarter of fiscal 2002 (April 2002) as Mr. Klugman transitions into his new role and responsibilities.

Mr. Slasky's decision to leave Net2Phone comes after his successful contributions to the company including guiding Net2Phone through its initial public and secondary offerings and raising approximately $1 billion from the capital markets for IDT Corp., Net2Phone Inc. and ADIR Technologies Inc. through private and public equity, high yield and bank financings. During his tenure, the company grew more than thirteen fold into one of the largest players in the Voice over IP industry.

"I've dedicated the past six years to the Net2Phone/IDT family and am pleased to name Norman as my successor. As I transition my responsibilities to him, I'm comfortable knowing that the company is close to profitability with nearly the best margins and EBITDA results at Net2Phone in years and a very strong balance sheet," said Mr. Slasky.

"Ilan was instrumental in getting Net2Phone off the ground and achieving industry leadership. As a good friend and colleague, I wish him well," said Howard Jonas, Chairman of IDT and Net2Phone.

Mr. Klugman brings a wealth of telecommunications experience to Net2Phone. With senior positions as Chief Operating Officer of LDDS/Worldcom and Chief Executive Officer of Trescom, Net2Phone believes Mr. Klugman's financial and telecom expertise will assist the company as it forges ahead in its path to profitability and beyond.

"As the pioneer in the VoIP industry, Net2Phone has built a successful track record of introducing innovative IP-based services, and in the process, created a market defining brand," said Mr. Klugman. "I am impressed with Net2Phone's combination of enthusiasm for the limitless prospects of VoIP and effective corporate management style and embrace the opportunity to continue the path to profitability and manage its growth in this rapidly evolving industry."

"We are pleased to have someone of Norman's caliber and impressive tenure in the telecommunications industry join the Net2Phone team. We are confident that he will seamlessly transition into the role and deliver increased value for our shareholders," said Stephen Greenberg, CEO of Net2Phone. "As a true professional who worked tirelessly for the company and brought Net2Phone to greatness, we thank Ilan for his many years of service and wish him well in his professional endeavors."

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.