Net2Phone Unveils SIP Solutions for Broadband Providers
Becomes the only company to provide both SIP and PacketCable telephony solutions to service providers

Newark, NJ - March 8, 2004 - Net2Phone (NASDAQ: NTOP), a leading provider of retail VoIP services, today unveiled a complete set of telephony solutions for broadband service providers globally. Complementing its existing PacketCable-ready solution, Net2Phone’s VoiceLineSM will now offer providers SIP-based hosted telephony services that can be sold to their residential and SOHO customers in a bundle with their existing product set.

“With best-of-breed solutions, Net2Phone can offer service providers customized solutions to meet their needs to deploy telephony globally,” said Stephen Greenberg, CEO of Net2Phone. “We can empower high-speed data providers or telecommunications providers with a full suite of quality VoIP telephony services. As the most experienced retail VoIP player, we can seamlessly integrate our solutions into broadband IP networks under a uniform umbrella.”

Two-Pronged Approach for Cable Operators
Offering VoiceLine as a complementary service to Net2Phone’s PacketCable managed VoIP solution positions Net2Phone as the only provider that can meet the needs of domestic and international cable operators with any DOCSIS standard networks, as well as metropolitan and remote customer franchises. By offering two tiers of service, Net2Phone can conform to any cable operator’s particular marketing, technical, financial and operational needs.

Net2Phone’s PacketCable Managed Telephony solution empowers cable operators to provide their subscribers with a service that resembles traditional telephony in terms of service, quality, features, functionality and reliability. Its accompanying network management toolset enables fully managed end-to-end VoIP cable telephony service, guaranteeing quality from call inception through termination. Throughout each point in the network - the local cable HFC network, the IXC segment and the local termination - Net2Phone’s PacketCable solution delivers end-to-end guaranteed call quality, network availability and service management.

Net2Phone’s VoiceLine utilizes SIP signaling, which empowers edge devices, such as multimedia terminal adapters, to establish and manage voice calls on all types of high-speed data networks. Net2Phone’s VoiceLine architecture centralizes the call management, CLASS features, billing and provisioning platform and enhanced services and distributes the infrastructure required for interconnecting onto and off of the PSTN network.

“Now cable operators can have even greater flexibility to customize their deployments by region. Some operators will opt for PacketCable solutions in some markets and SIP in others,” added Greenberg. “Other operators may choose to deploy both solutions in the same market - the PacketCable solution as their primary line replacement service and the SIP offering as an alternative line for a teenager or home office.”

Multiple Solutions for HSD providers and telcos
With the rollout of Net2Phone VoiceLine, international high-speed data and telecommunications service providers can now offer their subscribers residential broadband telephony solutions with a complete set of features and functionality, including call waiting, caller ID and voice mail. VoiceLine can also seamlessly integrate its front and back office systems, including its billing platform, into the operator’s infrastructure, facilitating a unified bill for high-speed data, telecommunications and other services. Additional features include web-based tools allowing subscribers to manage their telephony features online as well as check their voice mail.

The same technology, infrastructure and platform allows Net2Phone to also offer its partners incremental telephony services that they can offer to their subscribers, such as prefix dialing services and calling cards. By marketing multiple telephony services to their subscribers using one unified account and platform, partners can maximize their telephony revenue per subscriber. Targeted international partners include DSL, wireless ISPs and telecommunication service providers.

"What's great about VoiceLine is that service providers can adopt an offensive strategy to broaden their footprint. Being SIP-based, VoiceLine can support a variety of new services that go beyond what Net2Phone's PacketCable can provide to the cable market,” says Jon Arnold, VoIP Program Leader at research consultancy Frost & Sullivan. “Aside from being able to seamlessly offer multiple services, their solutions allow subscribers to receive a single, integrated bill. This means convenience for the subscriber, which helps reduce churn."

About Net2Phone
Founded in 1995, Net2Phone is a leading provider of retail VoIP services globally, comprised of two wholly owned subsidiaries. Net2Phone Global Services ("NGS") provides consumers and small businesses globally with bundled voice and enhanced services either directly or via partners. Net2Phone Cable Telephony ("NCT") provides cable operators with a turn-key solution to deliver residential phone service to their subscribers. While the opportunities for each unit differ, each division relies on quality partners for distribution and each utilizes a centralized platform to deliver retail services at a low incremental cost. 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 factors.