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Net2Phone’s E-Commerce Division sees strong growth
30,000 new web site subscriptions since June 2000 New global expansion includes availability in Canada, UK and Australia

Newark, NJ, October 13, 2000 -- Net2Phone (NASDAQ: NTOP), a pre-eminent player in delivering voice services to IP networks, today announced that its flagship e-commerce solution, Click2Talk, has signed up 30,000 web sites since June of this year, making it the most widely distributed voice enabled CRM (customer relationship management) tool. 

Click2Talk offers web users a live phone connection without the inconvenience of having to log off the Internet, while offering businesses like Lands’ End and FTD.com the opportunity to enhance client relations by adding the element of human voice to customer interaction. Click2Talk provides small and mid sized businesses with a cost effective and manageable way to communicate with their web site visitors in real time.

Customers can click on the Click2Talk icon on an e-tailer’s web site and Net2Phone's new Java applet initiates a free phone call from their PC to a live representative, enabling the customer the opportunity to ask questions about specific products or policies. Because Click2Talk calls are routed over the Internet, international customers can dial an e-tailer’s number without incurring any additional charges.

Click2Talk software is available for web sites directly from www.click2talk.com .

“This is a very exciting time for Click2Talk and Net2Phone,” commented Jordan Katz Director of E-Commerce at Net2Phone. “Businesses around the globe are beginning to realize the advantages to adding an application like Click2Talk to their web sites to offer their valued customers the ability to surf their web site in confidence. This also gives web sites the opportunity to upsell items and help complete sales that could be abandoned at check out due to the added comfort of a human voice.”

The success of Click2Talk in the U.S. has prompted Net2Phone to expand the availability of the product to Canada, the UK and Australia. As in the US, Canadian, UK and Australian Click2Talk calls are free, with voice calls being routed from the web host's site across the Net and on to the regular phone line in the relevant countries free of charge.

About Net2Phone.  

Net2Phone Net2Phone, Inc. 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. 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

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 October 31, 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.