Net2Phone Closes Public Offering, Including Exercise of Over-allotment Option
An Additional 1,000,000 shares of Common Stock at $4.50 per share

Newark, NJ -November 25, 2003 - Net2Phone, Inc. (Nasdaq: NTOP) today announced that the underwriters of its public offering of 10.5 million shares of common stock have exercised, in part, their over-allotment option and purchased an additional 1 million shares of Net2Phone’s common stock at $4.50 per share. The sale of the additional 1 million shares was consummated earlier today with the consummation of the sale of the 10.5 million shares. In total, the public offering, plus an additional 2.5 million shares purchased by IDT Corporation and Liberty Media at $4.50 per share, generated gross proceeds to Net2Phone of approximately $63 million. Net2Phone intends to use the proceeds from the offerings for general corporate purposes, capital expenditures, and working capital, including funding its cable telephony business.

JPMorgan Securities Inc. acted as sole book running manager of the offering and Jefferies & Company acted as joint lead manager. Blaylock & Partners LLP acted as co-manager. Copies of the final prospectus related to the common stock offering may be obtained from J.P. Morgan Securities Inc., 277 Park Avenue, New York, NY 10172; Jefferies & Company, Inc., 520 Madison Avenue, New York, NY 10022; and Blaylock & Partners LLP, 399 Park Avenue, New York, NY 10022

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. 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.
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.