Net2Phone Launches Suite of Corporate VoIP Solutions

NEWARK, NJ - October 9, 2003 - Net2Phone Global Services (NGS), a wholly owned subsidiary of Net2Phone, (Nasdaq: NTOP), today introduced a suite of VoIP solutions targeting small and medium sized enterprises. Net2Phone’s Max Private Voice Network (PVN) provides a combination of free calls within a controlled IP network in addition to low-cost off-net calls to any phone in the world, irrespective of the user’s location or current PBX infrastructure or technology.

Net2Phone’s Max PVN solution provides enterprises with a flexible set of features for VoIP calling, including:

• Ability to leverage existing telecom infrastructure, including existing PBXs
  
• Full suite of VoIP-enabling products to meet the needs of both corporate headquarters as well as remote offices
  
• Free on-net and low-cost off-net termination globally, utilizing Net2Phone’s robust VoIP platform and network
  
• Extension of free on-net calling to satellite offices, suppliers and customers
  
• VoIP calling utilizing both private and public IP networks
  
• Remote dial-in feature, empowering authorized users to access their PVN and then initiate calls to other on-net or off-net phone numbers
  
• A flexible telecom management software package, giving customers a choice between premise-based software that functions like a VoIP VPN and a hosted IP Centrex solution with a full-suite of administrative tools to fit customer’s needs.

Max PVN enables multiple users in various locations to connect both analog and digital PBXs or regular phones using a software-based management system, and then place calls either on-net or to any telephone around the world. Directly targeted to small to mid-sized businesses with multiple sites, Max PVN allows customers to leverage their existing IP connectivity to place free calls within their corporate periphery as well as extend their controlled calling environment to key customers. By adding cost-effective equipment to satellite offices or key business contacts, Max PVN empowers businesses to reduce the cost of inter-office calls considerably as well as benefit from Net2Phone’s low global calling rates.

“The Max PVN adds value and functionality to an existing PBX or corporate telecom solution by incorporating both on-net and off-net calling, enabling a quick return on investment for any business making international calls,” said Simon McIver, Director of Enterprise Products at Net2Phone Global Services. “By giving customers a choice in products as well as a suite of options to manage their telecom services, we can customize the right solution for each business.”

To better reach the enterprise demographic, Net2Phone is partnering with VARs, systems integrators, corporate bandwidth providers and PBX resellers to sell Max PVN solutions globally. Because the Max PVN builds on businesses’ existing telecommunications solutions, distributors are able to either bundle or upsell Max PVN as part of an overall telecoms IP solution. Distributors are further incentivized to sell Max PVN as they can receive a percentage of the recurring revenue generated from off-net global calling, compared with a one-time sale of telecom equipment and services.

"The benefits of VoIP are ringing true from both an economic and flexibility perspective. Max PVN gives us the ability to offer flexible telecom solutions to our enterprise customers, based on their individual needs. You're not restricted to particular telephones, PBXs, or even IP Phones, which allows our customers to get comfortable with whichever infrastructure works best for their needs," said Patrick Cardozo, President of Newcourt Systems Inc., a PVN distributor and hosted service provider based in Canada. "At the same time, Max PVN still provides the benefits of free calls between any user-defined IP environment and incredible savings on our long distance and international phone calls.”

Delivering corporate solutions is another step in Net2Phone’s strategy to offer hosted telecommunications solutions globally, enabling partners to offer low-cost VoIP services to their customers quickly, easily and at a low incremental cost. Net2Phone Global Services empowers its partners with the tools they need to offer consumer and corporate customers a full suite of telecommunications services, including calling cards, corporate solutions, VoIP services for Internet cafes and public call centers, and prefix code dialing services.

Customers interested in integrating Net2Phone Global Services’ corporate solutions into their IP environments can call 973-438-3382 or visit http://web.net2phone.com/partnerships/distributors/product/broadband/maxpvn.asp

About NGS
Over the past eight years, Net2Phone Global Services (NGS) has evolved from a low-cost provider of PC-based calling services to a next-generation provider of voice and enhanced services to businesses and consumers either directly or via a partner. While access points vary, NGS’ products and services all leverage the same centrally managed platform, delivering quality telecommunications services over an IP network while enabling partners to minimize expenses and expedite time to market.

Founded in 1995, Net2Phone is a leading provider of retail voice services over IP networks 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 are (1) Net2Phone Global Services, which sells retail VoIP solutions globally and (2) Net2Phone Cable Telephony, 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) and IDT Corporation (NYSE: IDT; IDT.C). For more information about Net2Phone's products and services, please visit www.net2phone.com <http://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.