Northland Selects Net2Phone for Cable Telephony Deployment

New Orleans, LA – May 3, 2004 -- Net2Phone (NASDAQ: NTOP) today announced that it will provide cable voice services to Northland Cable Television, passing more than 315,000 homes in the United States. Net2Phone’s hosted telephony platform empowers Northland to offer their customers phone service bundled with its current cable TV and high-speed Internet products. The companies made the announcement today at The 2004 National Show hosted by the National Cable & Telecommunications Association (NCTA).

Northland, the 18th largest US cable operator expects to begin to deploy cable telephony service beginning this summer. By outsourcing its telephony rollout and implementation to Net2Phone, Northland’s customers benefit from cost-efficient full-featured competitive phone service in addition to receiving one bill for all of Northland’s services.

“Net2Phone brings telephony solutions geared for various sized markets in the cable industry, making them an ideal partner for us,” said Jack Dyste, Senior Vice President/Technical Services of Northland. “With Net2Phone, we can provide our customers with a comprehensive bundle of voice, video and data, giving them choices in all forms of communications.”

“Northland is a model customer for us – a cable operator looking for a robust telephony solution that can accelerate their time to market while keeping costs in line, clearly demonstrating increased demand for outsourced telephony,” said Stephen Greenberg, CEO of Net2Phone. “We look forward to delivering Northland’s customers feature-rich affordable quality phone service over their HFC network.”

Northland will maintain ownership of its telephony subscribers and brand, and will provide customer service and technical support. Net2Phone will provide provisioning and billing integration to deliver a unified Northland invoice, CLASS 5 switching platform, advanced features, network surveillance tools, local and long distance interconnects, operator services/directory assistance, and service level agreements. Northland’s customers will benefit from savings compared to the cost of their current phone service, in addition to receiving a bundled offer of cable TV, high-speed Internet access and telephony services.

About Net2Phone

Net2Phone provides PacketCable, SIP and wireless VoIP solutions around the world. As leaders in enabling telecom service providers and cable operators with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands more overseas. Net2Phone’s hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone’s PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. 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.

About Northland Cable Television

Northland Cable Television operates smaller-market cable television systems in Georgia, South Carolina, North Carolina, Mississippi, Alabama, Texas, Washington, California, and Idaho. Northland strives to provide these communities with the highest quality broadband services at the best possible price.

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 press release and in the Company's 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.