Broadcom and Net2Phone to Collaborate on Voice over IP Technology.

Business & Technology Editors

The Western Show 2000

LOS ANGELES--(BUSINESS WIRE)--Nov. 29, 2000

Joint Offering Provides Cable Operators with Instant Voice

Service via World's Largest Operating VoIP Network

Broadcom Corporation (NASDAQ:BRCM), the leading provider of integrated circuits enabling broadband communications, and Net2Phone, Inc. (NASDAQ:NTOP), a leading provider of voice and enhanced services on Internet Protocol (IP) networks, today announced an agreement whereby Net2Phone's core Voice over IP (VoIP) technology is added to Broadcom's comprehensive suite of xChange(tm) VoIP software solutions and residential broadband gateway reference designs.

Cable operators can immediately use Net2Phone's proven, award-winning technology and network combined with Broadcom-based residential gateways to offer economical, scaleable, and value-added IP voice services over broadband connections. End-users benefit by using their existing, traditional telephones and gain immediate access to the Net2Phone network, taking advantage of the alternative, lower-cost telephony and value-added services that Net2Phone offers to its existing 1,000,000+ customers.

"Digital IP telephony services will provide consumers lower costs, more lines, and new, more convenient control over their voice communications," said Rich Nelson, Broadcom's Director of Broadband Communications. "This integrated product allows cable operators to offer low-cost domestic and international long-distance IP telephone service via the Net2Phone network. Net2Phone's experience and large infrastructure in IP telephony can jump-start cable operators' VoIP telephony service offerings."

"Net2Phone has always been focused on standards and ubiquity, and this relationship with Broadcom enables both. Broadcom's leadership in broadband silicon and software solutions combined with their commitment to standards ensures Net2Phone's position as the underlying Voice over IP provider to the broadband community," said Howie Balter, Chief Executive Officer of Net2Phone.

"Cable operators are asking us for a complete IP telephony solution that is simple to establish and ready to use," said John Pickens, Chief Technology Officer, Com21, a leading provider of broadband access devices. "Broadcom's integration of Net2Phone technology into their cable modem gateways will make it very easy for cable operators to add IP voice service."

Broadcom and Net2Phone are demonstrating the ease of placing IP telephone calls over the Net2Phone network using Broadcom's integrated VoIP/Home Networking Residential Broadband Gateway reference design at this week's Western Cable Show in Los Angeles, California. Convenient access to broadband applications is enhanced in this demonstration by the use of a new software display technology introduced by xSides Corporation, which provides an uninterrupted display area on the PC computer screen affording "always on" access to communications functions. "xSides(tm)' dedicated, non-interfering space on the screen display will allow show visitors immediate access to Net2Phone's VoIP network over Broadcom's IP home networking gateway," said Robert Steinberg, Chief Executive Officer of xSides.

The Broadcom reference designs, the BCM93352V and BCM93352VCM, are standards-based DOCSIS 1.1, PacketCable(TM) 1.0 residential broadband gateways, with integrated VoIP hardware and CablexChange(tm) VoIP software. These Broadcom gateways provide two to four lines of primary-line VoIP telephony, multiple always-on, high-speed Internet connections, and low cost home networking of PCs, telephones and peripherals over existing home telephone wiring, in addition to providing transparent access to the Net2Phone IP telephony network.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video, and data. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed local, metropolitan and wide area networks, home networking, Voice over Internet Protocol (VoIP), carrier access, residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, optical networking, digital subscriber lines (xDSL) and wireless communications. Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.

About Net2Phone

Net2Phone, Inc delivers voice and enhanced services to IP networks worldwide. Net2Phone enables people to place low-cost high quality calls from their computer, telephone, or fax machine, and now broadband gateway, 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. Net2Phone's strategic investors include Softbank, America Online, GE/NBC, and Yahoo! Additionally, AT&T has acquired a 39 percent voting stake in Net2Phone. For more information about Net2Phone's products and services, please visit www.net2phone.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release may contain forward-looking statements based on Broadcom's or Net2Phone's current expectations, estimates and projections about our industry, beliefs of our respective managements, and certain assumptions made by either or both companies. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, the actual results of Broadcom or Net2Phone could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Our respective Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. Neither Broadcom nor Net2Phone undertakes any obligation to revise or update publicly any forward-looking statements for any reason.

Broadcom(R), xChange, CablexChange and the pulse logo are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. Net2Phone is a trademark of Net2Phone, Inc. xSides is a trademark of xSides Corporation. PacketCable is a trademark of Cable Television Laboratories Inc. All other trademarks mentioned are the property of their respective owners.