NEWARK, NJ - January 31, 2002 - Net2Phone, Inc. (NASDAQ: NTOP), the leading provider of Voice over IP (VoIP) services, today announced a signed contract to interconnect its VoIP network with a major telecommunications carrier's circuit-switched network. After meeting numerous, stringent performance requirements, Net2Phone began accepting minutes from the carrier on January 25, 2002.

"This agreement is the culmination of over a year's worth of effort, and my congratulations go out to both sides. Our partner's quality requirements to meet lab certification are legendary in this industry, and the fact that minutes are being routed right now truly validates Net2Phone's VoIP expertise," said Stephen Greenberg, chief executive officer of Net2Phone. "VoIP is just now gaining traction for mission-critical applications, and we stand at the threshold of true convergence of voice and data over IP-based networks."

This agreement builds upon Net2Phone's strategy to become the premiere next-generation communications services provider to the worldwide retail, enterprise and cable telephony markets.

"We have laid out a detailed production release schedule from now until the end of the calendar year, and it is largely within our ability to control the amount of minutes sent over our network," said Gerald Pearce, Vice President of Strategic Alliances at Net2Phone. "The economics of the deal are advantageous for both parties, and net-net, we are looking at a tremendously scalable, long-term opportunity for Net2Phone."

The interconnection also encompasses Net2Phone's first production rollout of upgraded gateways on its network. "Quality-of-service has been a hurdle to widespread acceptance of VoIP for mission-critical applications. With a planned upgrade of our gateways, we will be well positioned for the push to the 99.999% or 'five-nines' reliability required by Tier 1 carriers as well as cable telephony service providers interested in primary and secondary line capabilities," said Stephen Greenberg.

Financial terms of the agreement were not disclosed. Additional information will be available on Net2Phone's second quarter fiscal 2002 earnings conference call, tentatively scheduled for February 28, 2002.

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 Corporation (NYSE: LMC.A; LMC.B), AT&T Corporation (NYSE: T), AOL Time Warner Inc. (NYSE: AOL), and IDT Corporation (NYSE: IDT; IDT.B). 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.