Hackensack, NJ --- September 7, 1999 - Net2Phone (NASDAQ: NTOP) today announced that it has entered into an agreement with SMART Communications, a soon to be wholly-owned subsidiary of PLDT (Philippine Long Distance Telephone), to provide IP Telephony services throughout the Philippines.

SMART, one of the Philippines' largest integrated telecommunications companies, will install Net2Phone gateways in the Philippines. In addition to its existing portfolio of telecommunications services, SMART will utilize Net2Phone's PC-to-Phone, Phone-to-Phone and PC-to-Fax Internet telephony services from the Philippines to anywhere in the world. Net2Phone's products and services enable direct low cost communications over the Internet.

"Our new relationship with SMART Communications will help further our commitment to becoming a fully global IP Telephony company. SMART's joint ventures with Japan's NTT Corporation and GE Information Services in the United States will help Net2Phone strengthen its reach to the world," said Mordy Rothberg, Executive Vice President of Net2Phone. "We are thrilled to be working with one of the Asia-Pacific's leading telecom companies and look forward to expanding our relationship."

"Our new relationship with Net2Phone will help strengthen our commitment to offering our customers the best and most cost effective way to communicate," said Conrad Hernandez, Head of SMART Communications' International (Carrier) Services Division. "Net2Phone's innovative services will greatly complement our offerings, and we are very happy to offer our customers the very best in IP Telephony."

This agreement enables Net2Phone to expand its IP services to more countries around the world. By creating a worldwide IP telephony network, Net2Phone seeks to offer low-cost and value-added services worldwide, continuing the paradigm shift from circuit switched to IP based communications.

SMART Communications, founded in 1993, is one of the Philippines' leading integrated telecommunications companies, offering a full range of voice and data communications services. SMART leads the cellular industry with over 840,000 subscribers in its ETACS network as of the 2nd quarter of 1999, accounting for slightly over half the total market. When its over 120,000 landline subscribers are counted as well, SMART has the second-largest subscriber base in the business, next only to PLDT.

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 services, legislation that may affect the Internet telephony industry and 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, please refer to the company's filings with the SEC.

Sarah Hofstetter
Vice President, Corporate Communications
Net2Phone
201-928-2882
sarah@net2phone.com