Net2Phone Enables Cable & Wireless of Cayman With Voice Over IP
Partnership to Facilitate Retail VoIP Services Throughout Cayman Islands

NEWARK, N.J. & CAYMAN--(BUSINESS WIRE)--June 17, 2004--Net2Phone, Inc. (Nasdaq:NTOP), and Cable & Wireless Cayman, Ltd., the preeminent telecommunications provider in Cayman, today announced that they have signed an agreement whereby they will offer retail VoIP services powered by Net2Phone in Cayman. The agreement takes advantage of Net2Phone's centrally managed, hosted platform delivering multiple value added VoIP products and services inexpensively.

Under the three-year agreement, Net2Phone will empower Cable & Wireless of Cayman with the capability to offer a full suite of VoIP services beginning with calling cards. Moving forward, Cable & Wireless will also extend its prefix dial international services to allow customers a new choice of competitively priced international calling method, using VoIP technology.
"Our agreement with Cable & Wireless of Cayman demonstrates the value that Tier 1 telecom operators see in using Net2Phone to help support their VoIP solutions. Our ability to seamlessly integrate into their existing systems and infrastructure is one of Net2Phone's significant competitive advantages," said Jonathan Reich, CEO of Net2Phone Global Services. "As the fourth Caribbean operator to sign an agreement with us, this is one more step in our strategy to enable service providers with retail VoIP services in the region."
"We are very excited about the proven solutions and capabilities that Net2Phone is able to offer to Cable & Wireless in Cayman," said Timothy Adam, Chief Executive of Cable & Wireless Cayman Islands. "Our partnership with Net2Phone will allow for us to bring exciting new products and benefits to our customers, and to expand our business under the new competitive environment."
This partnership builds on Net2Phone Global Services' strategy to offer hosted VoIP solutions to partners globally, particularly through empowering service providers with a VoIP bundle to their existing product set. By enabling them with VoIP services, Net2Phone can expedite their time to market while the operator benefits from using a provider that has the technical expertise, robust back-office and worldwide network to support multiple services on a single platform.
Net2Phone allows partners to offer their customers high quality, feature rich phone service by managing all the back office billing, account generation, rating, routing and provisioning, while partners are responsible for sales, marketing, first level customer support and distribution. Products include residential broadband telephony services, calling cards, prefix dialing, and Internet telephony call shop services.

About Net2Phone
Net2Phone provides PacketCable, SIP and wireless VoIP solutions around in 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 of 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 <http://www.net2phone.com>.

About Cable & Wireless Cayman
Globally, C&W is the third largest carrier of international traffic bringing integrated communications to over 17 million customers.
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.