NEWARK, NJ - August 20, 2001 - Net2Phone Inc. (NASDAQ: NTOP), the industry-leading provider of voice and enhanced services over IP networks, today launched Net2Phone CommCenter(SM) in the United States, the latest version of its PC calling software with a new user interface.

"CommCenter makes it easier than ever before for people to communicate by turning any PC into a telephone," said Bryan Wiener, Senior VP and General Manager of Communication Services at Net2Phone. "We've optimized quality and added new features to ensure consumers and businesses receive the best voice communication tools available."

Net2Phone has also engineered a new state-of-the-art calling engine, providing improved sound quality and clarity than its previous award winning calling software.

In addition to the improved sound quality, the latest version of Net2Phone's software includes:

• New user interface
• PC-to-Phone calling - with the first 5 minutes of domestic calls free
• Free unlimited PC-to-PC calling
• Active Contact List, enabling users to see when friends, family and co-workers are logged on so they can be contacted with just one click
• Online account management, enabling people to track call detail records, billing and costs for individual calls

The company will also integrate Andrea Electronics' EchoStop technology later this quarter, an echo cancellation software algorithm that enhances the quality of PC-based phone calls.

Net2Phone leads the PC-to-Phone market, handling about 72% of both traffic and revenue of the global PC-to-Phone market, according to iLocus, a leading Voice over IP (VoIP) market research firm. Media Metrix also ranked Net2Phone as the most used PC-to-Phone application for six consecutive months, with more users than both DialPad and Phonefree combined.

Rates for international PC-to-Phone calling average 50-70% less than traditional phone calling. The first five minutes of each domestic U.S. PC to phone call are free to users who sign up for service at www.net2phone.com, after which rates are $0.02 per minute. The company plans to roll out international editions of CommCenter in multiple languages this fall.

Net2Phone CommCenter customers can also use their account to make calls when they are away from their PCs through Net2Phone Direct, the company's phone-to-phone VoIP service.

Net2Phone's consumer revenue model enjoys multiple revenue streams from the up-sell and cross-sell of international phone calls, integrated sponsorships from related communications companies, calling cards, broadband services, and through the sale of advertising and direct marketing programs to marketers seeking to reach Net2Phone's global audience. Net2Phone also offers a full range of enterprise solutions, wholesale carriers services, phone-based IP calling, VoIP solutions for broadband, and VoIP devices.

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.