Rolling Meadows, Ill. and Newark, N.J.--(BUSINESS WIRE)--Oct. 2, 2000--U.S. Robotics, the world's No. 1 selling modem maker, and Net2Phone (NASDAQ: NTOP) a leading provider of voice-enhanced Internet communications services, today announced U.S. Robotics' first new product since reemerging as an independent company.

Developed in conjunction with Net2Phone, the U.S. Robotics 56K Internet Call Modem allows Voice over Internet Protocol (``VoIP'') calling and sophisticated call management capabilities. Calls made utilizing Net2Phone's Internet telephony network within the U.S. and Canada are free.

``The seamless integration of U.S. Robotics' technology with Net2Phone's VoIP solution allows call management capabilities not previously available in 56K modems. This fusion of technology shows the innovation and simplicity that are hallmarks of the U.S. Robotics brand now and in the future,'' said Juan Lopez, Senior Product Manager for U.S. Robotics.

``Net2Phone is pleased to combine its leading VoIP solution with the historically proven reliability of U.S. Robotics,'' said Yonah Lloyd, Vice President of Business Development for Net2Phone. ``The integration of Net2Phone technology with the Internet Call Modem continues our ongoing effort to seek out exceptional distribution methods for our growing suite of voice and data services.''

The Internet Call Modem is designed for use with a normal telephone. With the telephone connected to the modem, users can dial their Internet calls directly on the telephone's keypad when online using Net2Phone's award-winning software, which comes with the Internet Call Modem. Using a regular telephone handset allows users to experience the sound quality of a telephone, to which they are accustomed, instead of a computer's microphone and speakers.'

``The Internet Call Modem is the first of many U.S. Robotics products that will make the Internet experience less intrusive and more user-friendly. The integration of the Internet Call Modem's hardware with Net2Phone's software creates a natural and intuitive experience for users. They can easily call any phone in the world, call another PC, send voice e-mail or participate in live voice chat, all using the Internet,'' said Len Landi, Product Line Manager for U.S. Robotics.

In addition to sophisticated VoIP features, the modem's online call notification helps give users more control over their Internet experience, U.S. Robotics said. The Internet Call Modem utilizes the customer's existing Call Waiting and Caller ID services from the phone company by providing an ``Incoming Call'' notification onscreen if there is an inbound call while the customer is online.

The modem is also shipped with the U.S. Robotics Connections(TM) CD and Installation Essentials CD that includes a multimedia installation video and fax and Internet access software, as well as additional software for work, home and entertainment.

The suggested retail price of the modem will be $99.95, and it will begin shipping in late September 2000.

About U.S. Robotics.

The U.S. Robotics is the world's leading modem provider, bringing the Internet into millions of homes and businesses around the world. For three decades, U.S. Robotics has been at the forefront of modem technology, and in the 1990's was the first to boost analog modem speeds to the V.90 56K standard. This year, U.S. Robotics has reemerged as an independent company and will continue its tradition of making the most reliable, simple and innovative Internet access solutions available. All U.S. Robotics resources - from engineering to customer support - are dedicated to fulfilling that commitment. U.S. Robotics is a privately held company headquartered in the Chicago area. For further information regarding our company and products, please visit our website at www.usr.com.

About Net2Phone.

TheNet2Phone, 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