Net2Phone and Liberty Cablevision of Puerto Rico to Roll Out VoIP Telephony Across System
Marks Cable Industry’s First Fully Outsourced Managed VoIP Telephony Deployment for Replacement Line Service

Newark, NJ and Luquillo, Puerto Rico - October 22, 2003 - Net2Phone, Inc. (Nasdaq: NTOP) and Liberty Cablevision of Puerto Rico, Inc. today announced an agreement to offer residential telephony service to Liberty Cablevision’s customers using Net2Phone’s fully managed end-to-end IP telephony service over Liberty Cablevision’s HFC cable network. A commercial launch of these telephony services is intended to follow the completion of a successful 12-month market trial in several of Liberty Cablevision’s service areas. Liberty Cablevision expects to begin marketing this service on a broader basis early next year.

“The introduction of telephony, when combined with our existing video and high-speed Internet services, gives our customers the choice of enjoying a bundle of high quality and highly reliable broadband services at attractive prices,” said Jose Alegria, General Manager of Liberty Cablevision of Puerto Rico. “Our initial trials with Net2Phone have exceeded our expectations, and we are very excited about the opportunity to introduce VoIP technology to Puerto Rico and our customers.”

Liberty Cablevision will offer its subscribers two billing plan options under its “Liberty Voice Links” telephony service: a variable, per minute ‘Every Day’ plan and a flat monthly rate ‘Celebrity’ plan. Both options include all available features, such as call waiting, caller ID, directory assistance, 911, as well as unlimited local calling. During this phase of the trial, customers have been generating an average of 1,100 minutes of use per month, which is in line with usage experienced on a primary line service in Puerto Rico.

“Since we began our relationship with Liberty Cablevision, we viewed a broad rollout of these services as the natural outcome of a partnership with clear benefits to both parties. We are thrilled to have reached that point today. Importantly, the ability to perfect our solution in Puerto Rico has been a key factor to our entering discussions and building relationships with other cable operators,” said Stephen Greenberg, CEO of Net2Phone. “Our value proposition has clearly proven itself here, and is resonating with other cable operators who want to deploy telephony services without the hassle or capex usually associated with a new revenue generating unit. This is a move likely to accelerate the cable industry’s increasing interest in VoIP-enabled telephony services, and the likelihood of outsourcing such services.”

This offering allows Liberty Cablevision to expand utilization of its network capacity on a cost effective basis. Net2Phone’s cable voice platform permits cable operators such as Liberty Cablevision 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.

Under the terms of the agreement, Liberty Cablevision 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 the cable operator with a full view into telephone calls routed over its network. Consumers benefit on two fronts: inexpensive stand alone telephony when compared against traditional phone service and savings derived from the video, data and voice triple play in cable TV, high-speed Internet access and telephone services.

About Net2Phone
Founded in 1995, Net2Phone is a leading provider of voice services over IP networks worldwide, enabling toll-quality calls between computers, telephones, and broadband devices. 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, using components from companies such as Arris, Motorola, Gallery iPT, Mind CTI, Nuera and CoreOS. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: L; 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>.

About Liberty Cablevision
Liberty Cablevision of Puerto Rico, Inc. is a wholly-owned subsidiary of Liberty Media Corporation (NYSE: L, LMC.B). Liberty Cablevision passes approximately 310,000 homes and serves approximately 120,000 customers in 37 municipalities principally located in the Eastern, Central and Northern regions of the island of Puerto Rico. In the second quarter of 2002, the company launched the first fully interactive television service on the island, as well as high-speed data access through cable modems.

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 factor.