NEWARK, NJ - August 21, 2001 --- Net2Phone Inc. (NASDAQ: NTOP) today announced that the Net2Phone Voice Hosting Service has added support for VoiceXML applications running on Nuance's (Nasdaq: NUAN) Voice Web Server, enabling enterprise and telecommunications customers to rapidly and cost-effectively deploy robust voice-driven services. With today's announcement, Net2Phone and Nuance will allow customers to speed time-to-market in upgrading and deploying cutting-edge voice-based applications such as Customer Relationship Management (CRM) and Sales Force Automation (SFA).

Businesses can also deploy their existing Nuance-based voice applications over Net2Phone's Voice over IP (VoIP) network and hosting platform using either or a combination of VoiceXML and Nuance SpeechObjects™ through Net2Phone's support for Nuance's speech recognition, text-to-speech and voice authentication software. Offering these applications using Net2Phone's VoIP network and infrastructure significantly reduces prohibitive costs associated with hardware requirements and eliminates up-front capital expenditures. Additionally, customers benefit from labor cost savings and reduced network transit costs previously associated with deploying voice-based services to their customers and/or employees. All calls travel over Net2Phone's private managed IP network, enabling clear transmission of calls.

"Making our services available on multiple platforms enables us the flexibility to deliver our voice hosting platform to more customers globally. We are excited about working with Nuance to deliver integrated enhanced voice solutions to the corporate marketplace utilizing our award-winning network and platform, which can help companies deploy valuable voice-enabled applications without the burden of large up-front capital expenditures," said Bryan Wiener, Senior VP and General Manager of Communications Services for Net2Phone. "By hosting voice applications on our IP network, we can reduce both equipment and transit costs as well as deliver integrated ready-to-market solutions quickly and efficiently."

"We can now offer our customers the industry's premiere VoIP network-based voice hosting solution through the integration of our speech software into the Net2Phone VoIP network and voice hosting platform," said Ron Croen, CEO of Nuance. "Net2Phone's support for voice solutions on an end-to-end managed and owned IP network ensures that customers' applications will operate with the same toll quality as traditional providers."

More information about Net2Phone's Voice Hosting services can be found at www.net2phone.com/voicehosting or via e-mail at voicehosting@net2phone.com.

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 NUANCE
Nuance is the leader in Voice Web software - speech recognition, voice authentication, text-to-speech and voice-browsing products that make the information and services of enterprises, telecommunications networks and the Internet accessible from any telephone. Every day, millions of people interact with Nuance systems at companies like Japan Telecom, OnStar, Qwest Wireless, Sears and UBS. Nuance is headquartered in Menlo Park, Calif., with global sales offices and partners supporting solutions in multiple languages around the world. For more information about Nuance, visit www.nuance.com or call 1-888-NUANCE-8.