Hackensack, NJ -- July 29, 1999 -- Net2Phone Incorporated (Nasdaq: NTOP) today commenced an initial public offering of 5.4 million shares of Common Stock at a price of $15 per share through underwriters led by Hambrecht & Quist LLC, BT Alex. Brown, and Bear Stearns. All of the shares are being offered by the Company. The Company has granted the underwriters an option to purchase an aggregate of up to 810,000 additional shares of Common Stock to cover over-allotments, if any. The Company’s stock will be quoted on the Nasdaq National Market under the symbol “NTOP.”

A copy of the prospectus relating to the offering may be obtained from Hambrecht & Quist LLC, Prospectus Department, 1 Bush Street, San Francisco, CA 94104, BT Alex. Brown Incorporated, 1 South Street, Baltimore, MD 21202; or Bear, Stearns & Co. Inc. at 1 Sansome Street, 41st Floor, San Francisco, California 94104.

Net2Phone is a leading provider of services enabling users to make high quality, low-cost telephone calls over the Internet. These services are commonly referred to as Internet telephony.Net2Phone’s Internet telephony services enable customers to call individuals and businesses worldwide using their personal computers or traditional telephones.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.