Net2Phone Files Registration Statement

Newark, NJ - October 31, 2003 - Net2Phone, Inc. (Nasdaq: NTOP) announced that it has filed a registration statement with the SEC for the public offering by Net2Phone of 10,500,000 shares of common stock. The registration statement also applies to the offering of 2,500,000 shares to IDT Corporation and Liberty Media Corporation, our controlling shareholders.

JPMorgan is serving as sole book running manager of the offering and Jefferies and Company is acting as joint lead manager. Blaylock & Partners LLP is serving as co-manager. The company intends to use the proceeds from the offerings for general corporate purposes, capital expenditures, and working capital, including funding our cable telephony business.

Net2Phone provides Voice over Internet Protocol, or VoIP, telephony services. We utilize our VoIP technology to transmit digital voice communications over managed data networks and the Internet.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.