Cable & Wireless to Launch Broadband Telephony with Net2Phone Throughout the Caribbean.

NEWARK, N.J. -- Cable & Wireless today announced that it will expand its existing relationship with Net2Phone (NASDAQ: NTOP) as its hosted provider of broadband phone service to include additional islands throughout the Caribbean. This development follows the successful launch last May in the Cayman Islands of NetSpeak, the Cable & Wireless broadband telephony service powered by Net2Phone.

Under the multi-year agreement, Cable & Wireless will expand the NetSpeak offering to its residential customers throughout the West Indies, encompassing a population of more than 3.6 million, using Net2Phone's full-featured Session Initiation Protocol (SIP) based Voice over IP (VoIP) solution. NetSpeak is a full-featured telephony alternative to traditional calling that takes advantage of Net2Phone's VoIP platform and offers lower cost local and long distance calling. The NetSpeak service gives Cable & Wireless customers access to emergency services as well as value added features including call waiting, caller ID, call forwarding and voice mail.

"Net2Phone has demonstrated the unique ability to deliver all the elements for a full broadband phone service, which C&W can easily integrate and offer to our customers. The solution provides us with speed-to-market and with many of the critical back-office tools we need to effectively manage the service for our customers," said Enrique Camacho, senior vice president, operations, Internet & Data for Cable & Wireless' Caribbean Region. "Net2Phone has been a valued partner for us in Cayman. They have not only given us the tools to make VoIP available to our customers, but they have also helped to drive broadband awareness. We look forward to replicating this success throughout the Caribbean."

"Cable & Wireless held us to extremely high standards in their Cayman deployment, and we are pleased to have exceeded their expectations. We are eager to get started on these new implementations and continue to execute our strategy to help service providers deliver quality broadband phone services in their markets," said Jonathan Reich, chief executive officer of Net2Phone Global Services.

Supporting Cable & Wireless in the Caribbean is another step in Net2Phone's strategy to enable the strongest local retail partners to deliver the highest quality IP-based voice services internationally.

About Cable & Wireless

Cable & Wireless is one of the world's leading international communications companies. It provides fixed and mobile voice, data, IP (Internet Protocol) and broadband services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services.

Cable & Wireless' principal operations are in the United Kingdom, the Caribbean, Panama, Macau and Monaco. For more information about Cable & Wireless, go to www.cw.com.

About Net2Phone

Net2Phone provides VoIP PacketCable, SIP and wireless solutions around the world. As a leader in turn-key hosted VoIP telephony services, Net2Phone has routed billions of VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone provides partners with a SIP-based broadband telephony solution, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a high quality primary line-type service with features such as emergency calling. For more information about Net2Phone's products and services, please visit www.net2phone.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to satisfy in a timely manner the requirements of Section 404 of the Sarbanes-Oxley Act and the rules and regulations adopted pursuant thereto, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Press Release and in the Company's filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.