Newark, NJ - February 20, 2002 - Net2Phone, Inc. (Nasdaq: NTOP), the leading provider of Voice-over-IP (VoIP) services, today announced it is providing Yahoo! Inc. (Nasdaq: YHOO) with the VoIP network and voice-hosting infrastructure used to offer the newly launched voice-activated dialing capabilities of the Yahoo!® Phone Card (http://phonecard.yahoo.com) service.

Yahoo! Phone Card users may now place domestic telephone calls to contacts in their Yahoo! Address Book (http://address.yahoo.com) by simply calling 1-800-44-YAHOO and either saying the recipient's name, e.g. "Call Joe's cell phone," or the recipient's number, e.g. "Call 212-555-1212." Calls are routed directly to the desired number via Net2Phone's managed IP network.

"We are thrilled to offer Yahoo! Phone Card consumers voice-activated dialing services through our relationship with Net2Phone," said Madhu Yarlagadda, director, Yahoo! Everywhere. "As part of our Yahoo! Everywhere voice and data strategy, we will continue to introduce new ways for people to access Yahoo!."
The Yahoo! Phone Card leverages Net2Phone's VoIP services to offer an inexpensive calling card with the value-added feature of voice-activated dialing. Calls within the United States will be $0.10 per minute with toll-free access, a savings of 35-50 percent compared to major traditional calling cards that offer little to no enhanced functionality.

"Convergence is here, as is evidenced by the merging of Internet information with the telephone," said Stephen Greenberg, CEO of Net2Phone. "Voice over IP is the perfect platform for enhanced services such as the voice-activated dialer, and we are excited about being at the forefront of this industry with compelling products and services."

The Yahoo! Phone Card allows consumers to use their Yahoo! Address Book from any U.S. location. The network-based platform is "device agnostic" and is therefore accessible from any landline or wireless phone in the country.

Offering such applications using Net2Phone's VoIP network and infrastructure significantly reduces expensive traditional telephone hardware requirements while providing Net2Phone with the ability to drive enhanced minutes over its network.

"Net2Phone is excited to be working with Yahoo! to provide Yahoo! Phone Card consumers with multiple telephony products to cater to their different needs," said Bryan Wiener, Senior Vice President and General Manager of Net2Phone.

Yahoo! developed the voice-activated dialing application which interfaces with Net2Phone's platform using Voice XML markup language. Net2Phone uses voice browser technology supplied by HeyAnita.

Financial terms of the agreement were not disclosed.

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, AT&T Corporation, AOL Time Warner Inc., and IDT Corporation. 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.