Newark, NJ - June 25, 2001 -- Net2Phone Inc. (NASDAQ: NTOP) today announced that France Telecom (NYSE: FTE), one of the world's leading telecommunications carriers, is interconnecting its voice network with Net2Phone's managed Voice Over IP Network for worldwide carrier grade termination. The interconnection is now on service.

The relationship between Net2Phone and France Telecom will allow France Telecom to gain access to Net2Phone's managed Voice over IP Network. Net2Phone will benefit from France Telecom's global voice and data networks and International presence.

"We are proud that France Telecom, one of the world's largest telecom companies, has chosen to interconnect with Net2Phone for routing Voice over IP traffic." commented Kenny Helfer, Vice President of Carrier Sales. "Our agreement with France Telecom as well as over a dozen other Tier 1 carriers around the globe enables us to continue to lead the IP telephony market with quality products and services globally."

"With this contract with Net2Phone, France Telecom will offer a better value-price ratio as well as an effective alternative access to reach destinations for the best interest of its retail and wholesale customers. France Telecom is very excited about working with Net2Phone this will allow us to hold our ongoing competitive position on a number of destinations. The evolution of our network and our partnership with Net2Phone enable us to maintain our position of market maker and to be in the center of wholesale industry's vision about the evolution of voice trading activity," says Francis Kretz, Executive Vice President, Marketing & Sales, France Telecom Long Distance.

Net2Phone will handle call management, rating, routing, and authentication through utilization of Net2Phone's top-rated gatekeeper platform. Net2Phone's fully redundant carrier-grade gateways connect to legacy telephony devices via T1, E1 or analog interfaces. By utilizing Net2Phone's existing Least Cost Routing capabilities, Net2Phone provides efficient toll quality audio, and can terminate calls to anywhere in the world.

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 France Telecom
France Telecom is one of the world's leading telecommunications carriers, with 2000 consolidated operating revenues of Euro 33,7 billion and operations in more than 75 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. With the acquisition of the UK mobile operator Orange, France Telecom is the second largest European mobile operator, totalling more than 33 million subscribers. France Telecom is listed on the New York Stock Exchange and Paris Bourse. Wanadoo, France Telecom's consumer Internet subsidiary, has been listed on the Paris Bourse since July 2000. www.francetelecom.com. www.carriers.francetelecom.com.