Net2Phone to Provide VoIP Services in Vietnam with Largest ISP.

Business Editors/High-Tech Writers

NEWARK, N.J. & CHICAGO & HANOI, Vietnam--(BUSINESS WIRE)--April 1, 2004

Net2Phone Global Services (NGS), LLC, a wholly owned subsidiary of Net2Phone, Inc. (Nasdaq: NTOP), the leading provider of retail Voice over IP (VoIP) services, today announced that state-owned Vietnam Datacommunications Company (VDC), the largest provider of data services in Vietnam, has today launched a campaign to market Net2Phone's VoIP services to its corporate and residential customers throughout Vietnam.

Net2Phone provides a suite of SIP-based hosted telecommunications solutions to telcos and ISPs globally facilitating quick roll out of cost effective quality VoIP solutions. For Vietnam, Net2Phone has partnered with VITC, a U.S.-based communications firm with operations in Asia, to secure relationships with top Vietnamese ISPs, including VDC, to deliver services to both small-to-mid sized businesses and consumers. VDC is the largest data services provider in Vietnam with 65% market share, servicing 1.6 million customers nationwide.

"Net2Phone brings about true convergence of voice on data networks, empowering us to provide a bridge for Vietnamese customers to access quality affordable telecommunications services," said Thomas O'Connor, CEO of VITC. "We are excited to deliver best-of-breed technology throughout Vietnam, drawing on Net2Phone's expertise combined with our ability to target effective solutions for the Vietnamese marketplace."

The companies jointly designed these solutions to cater to the needs of the Vietnamese marketplace, including billing in Dong, the local currency, and providing customer support in Vietnamese with web-based account-management tools and software.

"Net2Phone's services deliver added value to our customers, providing affordable communications while giving us a 'sticky' application to retain customers," said Mr. Hoang Minh Cuong - Deputy Director at VDC. "Their ability to customize solutions by offering solutions in our currency and language while giving us flexibility of products to offer to our different customers has been exceptional."

According to the International Telecommunication Union (ITU), Vietnam is the second fastest-growing telecommunications marketplace in the world. With more than 80 million people in the country, Vietnam represents a large market of customers looking for cost-effective communication solutions.

"With their tremendous distribution networks within both the corporate and residential sectors, both VDC and VITC are well positioned to accelerate the adoption of VoIP services throughout Vietnam," said Jonathan Reich, CEO of Net2Phone Global Services. "As the market leader with the support of the Vietnamese government, VDC is an ideal channel partner for Net2Phone, enabling us to provide value-added telecommunications services leveraging their footprint and our platform."

This arrangement builds on Net2Phone' strategy to offer hosted telecommunications solutions to partners globally, enabling them to offer low-cost VoIP services to their customers quickly, easily and at a low incremental cost. As a hosted provider, Net2Phone uses its centrally managed platform to empower its partners with the tools they need to offer consumer and corporate customers a full suite of telecommunications services, including residential broadband telephony, calling cards, corporate solutions, VoIP services for Internet cafes and public call centers, and prefix code dialing services.

About Net2Phone

Net2Phone is the only provider of PacketCable, SIP and wireless VoIP solutions in the world. As leaders in enabling telecom service providers and cable operators with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: L; LMC.B) and IDT Corporation (NYSE: IDT; IDT.C). For more information about Net2Phone's products and services, please visit www.net2phone.com.

About VDC

VDC, a subsidiary under VNPT (Vietnam Posts and Telecommunications Corporation), is a leading company in the IT industry in Vietnam. VDC is one of the larger IXP/ISPs and occupies approximately 65% of the market share of Internet service providers in Vietnam with growth of 200% annually. VDC is the only ISP with Internet network coverage in 63 provinces and cities throughout Vietnam. Some of the main products and services provided by VDC include: Internet, Frame relay, online services, training and consulting services and IT Integrated solutions. Some recent projects include: Design and set-up of the accounting system WAN for Post Offices in the cities and provinces all over the country; and Designing and set-up of the Internet network in all provinces and cities of Vietnam. For more information about VDC's products and services, please visit http://vdc.com.vn.

About VITC

VITC is a next-generation, leading telecommunications carrier with international network operations focused on serving the needs of rapidly growing markets in Asia. As a U.S.-based carrier with extensive operations there and other rapidly developing telecommunication markets around the world, VITC provides a bridge for its customers to access markets for voice, data, and other networking services using the latest technologies. For more information about VITC services, please visit http://www.vitcnet.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 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 Report and in the Company's other 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.