U.S. Senator Jon Corzine -D-NJ- to Honor Net2Phone for Export Achievement
Net2Phone brings calling alternatives to India, lowering costs and promoting economic growth

Newark, NJ - Dec 4, 2002 - In honor of its success in providing Internet telephony services to India, Net2Phone, Inc., the leading provider of Voice over IP (VoIP) services, will be awarded today a certificate for export achievement by Senator Jon Corzine (D-NJ) and U.S. Commercial Service Deputy Assistant Secretary Bruce Blakeman on behalf of the U.S. Department of Commerce.

The award will be presented to Net2Phone Chairman Howard Jonas and Vice Chairman and Chief Executive Officer Stephen Greenberg at the Net2Phone headquarters in Newark, New Jersey at 1:00 p.m.

Within weeks of India's telecommunications deregulation in April of 2002, Net2Phone VoIP calling services provided the country with one of the first alternative means of telephony to the government-run incumbent. As a result, Indian businesses and consumers have been able to experience the benefit of reduced communication costs through their Net2Phone service. Net2Phone's services are marketed to consumers by local ISP's licensed to provide VOIP services. This type of marketing also enables access to Net2Phone's services from the popular public calling centers that permeate the country.

"In a country where for many businesses the cost of communications is an issue, and where homes lack even a traditional phone line, Net2Phone offers an affordable, high-quality calling solution," said Senator Corzine. "We congratulate Net2Phone for its achievements in India and look forward to further positive developments for the company worldwide."

"This embassy is very happy that Net2Phone is receiving an award from the Department of Commerce for its achievements in India. This is an excellent example of leading US and Indian companies working fruitfully together in a frontier area of technology. We would like to wish Net2Phone even greater successes in the future, said Indian Embassy Deputy Chief of Mission Alok Prasad.

"Net2Phone is advantaged by our ability to quickly move into new areas and offer services through the strength of our proprietary, comprehensive global network," said Stephen Greenberg. "With hubs throughout the world and the widespread use of the Internet, Net2Phone's services can be made available to millions in a matter of weeks. We are very grateful to the U.S. Commercial Service, that has helped Net2Phone in accelerating its export expansion efforts."

"This honor recognizes Net2Phone's dedication to providing high quality VoIP service as markets around the world are freed from monopoly control," said Howard Jonas, Chairman of Net2Phone. "Historically India is one of the most costly nations for international calls to destinations such as the United States. Now, through Net2Phone, international calls from India cost pennies on the dollar as compared to traditional offerings."

The U.S. Department of Commerce's Export Achievement Certificate recognizes companies that are business clients of the Commerce Department's U.S. Commercial Service, and that have used its services to make their first export sale or open new foreign markets.

The U.S. Commercial Service is a Commerce Department agency that helps small and midsize U.S. businesses sell their products and services globally. The Newark U.S. Export Assistance Center is part of the agency's worldwide network, which includes 108 U.S. Export Assistance Centers throughout the United States and more than 150 international offices. Last year, the agency helped U.S. companies generate $34 billion in export sales.

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. Incorporated within the company is its Cable Technologies Division, which has developed a fully outsourced standards-compliant telephony solution for cable operators. 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 (NYSE: T - News), 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.