Net2Phone and Liberty Cablevision of Puerto Rico Showcase First End-to-End IP Call over Cable Networks
Motorola Provides eMTA and Key Broadband Services Router/CMTS Technology

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NEWARK, NJ - June 26, 2002 - Net2Phone, Inc. (Nasdaq: NTOP), the leading provider of Voice over IP (VoIP) services, and Liberty Cablevision of Puerto Rico today launched a pilot test of the first fully managed end-to-end IP telephony service over broadband networks, utilizing components from vendors including Motorola, Inc. (NYSE: MOT), Broadband Communications Sector.

The first call will be placed by Net2Phone Chairman Howard Jonas in Luquillo, Puerto Rico to Liberty Media (NYSE: L; LMC.B) Chairman John Malone.

"When Bell called Watson, it was the most famous call of the 19th century. This should be the most famous call of the 21st century," said Howard Jonas. "This technology alone can bring back telecom to economic heights, and, as John Malone is one of the acknowledged leaders in both telecom and cable, I'm thrilled that he is a part of this."

"The combination of telecom and cable over a VoIP platform is a technology we have been watching with much interest for years. We believe VoIP economics far outweigh those of the traditional circuit switched network providing cable operators with a compelling new value-added service offering on a cost efficient basis," stated Dr. Malone. "I am excited about the trial with Net2Phone and the future prospects of VoIP and the applications for our cable operations around the world."

Calls are routed directly from a cable subscriber's existing telephone plugged into Motorola's CG4501 embedded multimedia terminal adapter (eMTA), over the cable Hybrid Fiber Coax (HFC) network to Motorola's BSR 64000 CMTS/router technology. This technology, which recently earned DOCSIS 1.1 qualification, supports the IP telephony call using per-flow queuing to enable the Quality-of-Service (QoS) required to deliver toll-quality voice services to residential and business customers throughout the local HFC network. The call is then routed to the Net2Phone managed softswitch, which rates, manages, provisions, and bills the call and routes it over IP networks to the closest gateway to the recipient. The call is then transferred to the public switched telephone network (PSTN) and directed to a regular telephone anywhere in the world. Net2Phone's solution is standards-based, working towards a Packet-Cable compliant architecture.

"As a longtime proponent of Voice over IP, I take great pride in watching IP telephony graduate to the next level through this turnkey relationship between Net2Phone and Liberty Cablevision," said William Kennard, former FCC Chairman and Managing Director at the Carlyle Group. "This announcement means that the tremendous consumer benefits of Voice over IP will be available to cable subscribers much sooner than most people have predicted."

"Motorola Broadband is pleased to join Net2Phone and Liberty Cablevision PR in enabling this groundbreaking end-to-end IP call over cable," said Dan Moloney, Motorola executive vice president and newly appointed president of Motorola's Broadband Communications Sector. "Voice is an important component of the broadband 'triple play' service offering, and we're proud to add this accomplishment to Motorola's long list of broadband-industry milestones. We look forward to providing the infrastructure and home solutions that operators need to deliver IP voice as part of their complete, end-to-end solutions."

Until now, cable telephony services have deployed a hybrid PSTN/IP solution requiring them to allocate fixed, static bandwidth and utilize legacy Class 5E switches and infrastructure to route calls over the cable access network resulting in higher CapEx and operating expenses. Net2Phone's cable voice platform permits cable operators to deploy telephony services easily via a fully outsourced solution, thereby enabling them to offer quality telephony services to their customers, reduce churn, generate incremental revenue and keep CapEx and operating expenses at a minimum.

The cable operator maintains ownership of the customer, service brand, and Tier I customer and technical support, while Net2Phone supports the back office platform, switching and transport, ongoing operations and Tier II+ technical support to deliver a fully managed QoS IP solution. Net2Phone tracks and monitors voice quality and network performance metrics from start to finish and provides cable operators with a full view into telephone calls routed over their network. Consumers benefit from savings over their current phone service, in addition to receiving a unified bill, aggregating cable TV, high-speed Internet access and telephone services.

"This is the first step in Net2Phone's becoming the fully outsourced telephony solution for the cable industry," said Stephen Greenberg, CEO of Net2Phone. "We are proud to be working with two of cable's greatest players - Liberty and Motorola - to deliver a cost-effective and competitive solution to the marketplace."

The service in Puerto Rico is slated for 50-100 customers, and is designed to give Liberty Cablevision of Puerto Rico a glimpse of telephony usage behavior while offering select customers a compelling alternative to their current telephone service. The pilot is scheduled to run until October, 2002.

Founded in 1995, Net2Phone is a leading provider of voice services over IP networks to consumers and businesses 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. Incorporated within the company is its Cable Technologies Group, which has developed a fully outsourced telephony solution for cable operators, incorporating best of breed components from Motorola, Gallery-ipT, MIND CTI, IP Unity and Nuera. 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), and IDT Corporation (NYSE: IDT; IDT.B). For more information about Net2Phone's products and services, please visit www.net2phone.com.

Liberty Media Corporation (NYSE: L, LMC.B) owns interests in a broad range of video programming, broadband distribution, interactive technology services and communications businesses. Liberty Media and its affiliated companies operate in the United States, Europe, South America and Asia with some of the world's most recognized and respected brands, including Encore, STARZ!, Discovery, USA, QVC, Court TV and Sprint PCS.

About Motorola's CG4501 eMTA
Motorola's VoIP communications gateway technology provides the interface between the cable plant infrastructure and the various subscriber devices in the home such as telephone handsets and personal computers. The telephony services are delivered to the home utilizing industry-standard VoIP signaling protocols carried over a high-speed data device.

About Motorola's BSR 64000 CMTS/router technology Motorola's BSR 64000 is a DOCSIS 1.1-qualified, carrier-class, content aware CMTS/router designed to provide operators with extremely high network availability, as well as the control of each subscriber's traffic at the application level that next-generation services require. Motorola's BSR 64000 technology also helps operators reliably deliver hundreds of thousands of voice, video, data, music, and other interactive IP-based service flows over shared cable and other broadband network infrastructure.

About Motorola, Inc.
Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 2001 were $30 billion.

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