Hackensack, NJ - March 31, 2000 - Net2Phone Inc. (Nasdaq: NTOP) today announced that Yahoo! Inc. (Nasdaq: YHOO) has purchased a minority equity interest in Net2Phone, the leading provider of Internet telephony services worldwide. The investment represents more than a five percent interest in Net2Phone.

Under the terms of the agreement, Net2Phone has issued and sold Yahoo! approximately 2.8 million shares of Net2Phone's Common Stock in exchange for approximately 806,000 shares of Yahoo! Common Stock, resulting in total consideration of $150 million.

"With 120 million users worldwide, Yahoo! has the tremendous ability to reach a vast global user base. We are pleased to add another proven Internet leader to Net2Phone's roster of strategic investors and partners," said Cliff Sobel, chairman of Net2Phone. "We believe this relationship will help us bring our strategy of voice enabling the Web to new levels."

"Net2Phone's leadership position, combined with its technological edge and compelling service offerings, makes it a strategic investment opportunity for Yahoo!," said Jeff Mallett, president and chief operating officer of Yahoo!. "Telephony is going to play an integral role on the Internet in the near future, and Net2Phone is helping to change the way people communicate by moving voice communications to the Web."

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.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, among other things, Net2Phone's expected operating performance for the three months ending April 30, 2000 and thereafter. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet telephony industry, and Net2Phone's ability to operate the services described on a large scale commercial level.The forward-looking statements are made as of the date of this press release, and Net2Phone assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth herein and the other information set forth from time to time in Net2Phone's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.