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Net2Phone Increases Distribution Through Leading Web Hosting Companies Webhosting.com, 9Net Avenue, and AIT to resell Net2Phone's e-commerce services to their 100,000+ web sites

Hackensack, NJ - September 14, 1999 --- Net2Phone Inc. (NASDAQ: NTOP) today announced that three of the largest web hosting companies in North America will resell its interactive voice enabled e-commerce solutions to over 100,000 web sites.

Through agreements with webhosting.com, 9Net Avenue, and Advanced Internet Technologies (AIT), Net2Phone's Click2Talk and Click2CallMe will be sold to enterprises looking to add real-time voice interaction to their web sites. These relationships further Net2Phone's reseller strategy, leveraging existing and far reaching distribution channels, where companies can easily sign on to resell Net2Phone's e-commerce solutions.

The three web hosting companies will solicit their clients to integrate Net2Phone's e-commerce solutions into their web sites. The fully automated reseller program enables clients to sign up for Net2Phone's e-commerce services through a designated web site, enabling the reseller to have full management of their clients.

Net2Phone offers Click2Talk, Net2Phone's one-click web-to-phone solution, and Click2CallMe, Net2Phone's web-based callback program. Both services gives businesses the opportunity to enhance client relations and increase sales closures by adding the element of human voice to customer interaction

"By partnering with web hosting companies that have existing relationships with web site owners, we hope to dramatically increase visibility and usage," said Jordan Katz, Director of Click2Talk. "While some companies offer chat solutions, they tend to require investments in facilities, and infrastructure, which can be cumbersome and costly. However, Net2Phone enables all enterprises, big and small, to easily and inexpensively add the voice component to their web site, enhancing the consumer's online shopping experience."

With Click2Talk, users can speak through their multimedia computers to sales and/or customer service representatives via the Internet. Click2Talk offers web users a live phone connection without the inconvenience of having to log off the Internet. With 89% of computer users worrying about transactional security (Dell/Louis Harris & Associates poll), Click2Talk enables users to speak to a "live" human representative, resolving security fears and adding a human element to an increasingly digitized universe. Click2CallMe uses regular telephone lines for voice traffic and is designed for customers who do not have multimedia PCs.

"We are thrilled to be able to offer this exciting new E-Commerce Solution to our customers," said Jesse Rasch, CEO of WebHosting.com. "Net2Phone Interactive has developed the key to bridging the gap between call centers and web shoppers."

"We are pleased to offer Click2Talk and Click2CallMe to our business web hosting clients. These are tremendous tools that will allow our clients an opportunity to turn their visitors into buyers/clients," said Frank Gurrera, Product Analyst from 9Net Avenue Inc. "The ease and simplicity involved with these tools will make them a must have for any company trying to enhance their call center. After implementing both tools into our web site, we realized greater activity of interest from visitors and we were able to turn these visitors into clients."

"Providing our customers the opportunity to easily integrate Click2Talk and Click2CallMe within their Ultrashop web stores introduces a nice finishing touch to AIT's turnkey e-commerce solution," said Ed McDaries, Chief Marketing Officer of Advanced Internet Technologies, Inc.

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 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 reports filed with the SEC.

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

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