ENGLEWOOD, CO and NEWARK, NJ - June 14, 2001 --- Net2Phone Inc. (NASDAQ: NTOP) and Liberty Media Corporation (NYSE: LMG.A and LMG.B) today announced that Liberty will license Net2Phone’s Voice over IP (VoIP) technology for five years.

Under the terms of the Binding Memorandum of Understanding, Liberty Media will license Net2Phone’s core VoIP technology and make it available to its International cable affiliates serving over 25 million households.

Included in the license are Net2Phone’s current communications applications, such as its VoiceLineSM voice over broadband services, and support systems as well as a commitment to jointly develop new technology and delivery systems for communications services and applications.

Using broadband connections for voice has become a viable means for routing telecommunications services. By licensing Net2Phone’s VoIP technology, Liberty Media can offer their customer base access to an intelligent IP dial tone, offering services such as voice-activated dialing, voice portal services, and multiple messaging features with unparalleled voice quality.

The license marks two new milestones for Net2Phone: 1. The significant entry into the International cable sector with one of the most substantial players in the space, and 2. The introduction of licensing as a new revenue stream for Net2Phone. Licensing Net2Phone’s technology enables telecommunications companies and cable operators to reap the benefits of Net2Phone’s proven Voice over IP technology without investing heavily in R&D, infrastructure, and technology. Net2Phone expects to enter into other licensing agreements with additional telcos and broadband providers, enabling them with core Voice over IP technology and services.

“A combination of best-of-breed technology and real working experience in VoIP, coupled with clear vision makes Net2Phone the logical choice for Liberty,” said Robert Bennett, President and CEO of Liberty Media. “The potential to layer voice and next-generation applications on top of existing network is an exciting opportunity, and we are fortunate to be working with the leader in the industry to assist our implementation.”

“This is a landmark deal for Net2Phone, and a true validation of our leadership position in voice enabling broadband networks,” said Howie Balter, Chief Executive Officer of Net2Phone. “Together with Liberty, we can provide cable operators with the tools they need to generate new high-margin lines of revenue by offering voice and enhanced services over their existing networks.”

About Net2Phone
Founded in 1995, Net2Phone is a leading provider of voice and enhanced services over IP networks to consumers, businesses and carriers worldwide. With millions of users around the world, Net2Phone enables toll-quality calls between computers, telephones, and broadband devices utilizing IP networks. Recognized as the first company to bridge the Internet with the public switched telephone network, Net2Phone has routed more than 1.5 billion minutes of traffic over its award-winning network. Traded on the NASDAQ under the symbol NTOP, Net2Phone’s strategic partners and investors include AT&T, America Online, and Yahoo!. Net2Phone also offers enhanced hosted service solutions, including voice recognition, for businesses around the world. For more information about Net2Phone's products and services, please visit www.net2phone.com.

About Liberty Media
Liberty Media holds interests in a broad range of Domestic and International video programming, communications, technology and Internet businesses. Liberty Media's principal International cable assets include interests in UnitedGlobalCom, Inc., Telewest Communications plc, and Jupiter Telecommunications Co., Ltd.