Hackensack, NJ – June 24, 1999 –Net2Phone today launched E.filiate, a web-based affiliate program. Web site owners can now make money while offering their visitors the opportunity to save money when making telephone calls.

When visitors make Net2Phone purchases off an E.filiate site, E.filiate participants earn referral fees of up to 15% of the sales they generate. Net2Phone supports the back end effort, including secure e-commerce ordering, customer service, and technical support. New partners can sign up for free on our web site.

Users can download Net2Phone’s free software from any NetPartner affiliate site, and will then be able to place low cost phone calls to any telephone in the world from their multimedia Internet-ready PCs. Net2Phone will enable all E.filiate participants to check their personal sales reports and commissions directly at our web site on our web site. E.filiate will be available to users in English, Spanish, French, German, Dutch, Italian, Portuguese, and Japanese.

Net2Phone will customize personalized software for each web site, and will also provide each E.filiate participant with Net2Phone banners, buttons, and jump pages to help increase sales and traffic to their web site.

“Our E.filiate program is an exciting opportunity for our affiliates and for Net2Phone,” said David Greenblatt, Chief Operating Officer of Net2Phone. “Through syndicated selling, we hope to sign up new customers with low acquisition costs, allow others to make money in the process, and gain significant visibility for IP telephony products.”

Net2Phone is a leading provider of voice-enhanced Internet communications services to individuals and businesses worldwide. Net2Phone enables people to place low-cost high quality calls from their computer, telephone, or fax machine to any telephone or fax machine in the world. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the web and other IP networks. For more information about Net2Phone’s products and services, please visit www.net2phone.com.

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements involving risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements, include, but are not limited to, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet telephony industry, Net2Phone’s ability to operate the services described on a large scale commercial level. For additional information regarding these and other risks associated with the company's business refer to the company's filings with the SEC.