Net2Phone and Yahoo! Sign IP Voice Networking Agreement
Yahoo! to Utilize Net2Phone's Network Services for Voice Services

Santa Clara, Calif. & Newark, N.J -- Oct. 10, 2000 -- Yahoo! (Nasdaq:YHOO ), a leading global Internet communications, commerce and media company serving millions of people worldwide and Net2Phone Inc. (Nasdaq:NTOP ), a pre-eminent player in delivering voice services to IP networks, today announced that Net2Phone will provide its voice-optimized IP network for voice transit throughout the Yahoo!® network of properties. 

Under the terms of the agreement, Yahoo! will use Net2Phone's Voice over IP network for its newest suite of voice services. Launched today, Yahoo! by Phone (phone.yahoo.com) provides telephone and voice access to popular Yahoo! content, voicemail and e-mail; Yahoo! Mail (mail.yahoo.com) offers free voicemail; and Yahoo! Messenger (messenger.yahoo.com) offers free PC-to-phone calling.

``Yahoo! has established one of the most popular communication networks in the world and these new voice offerings are the most recent additions to that,'' said Jeff Mallett, president and chief operating officer, Yahoo!. ``We believe consumers will benefit significantly from the integration of voice products and services enabled by Net2Phone throughout our network of properties. We chose Net2Phone because of the exceptional quality of their network and their ability to grow and scale their products to meet the needs of Yahoo!'s millions of consumers.''

``Working with Yahoo! to enhance several properties with voice capabilities is an excellent opportunity for Net2Phone to showcase its expertise in voice enabling Web products and services,'' said Howie Balter, chief executive officer of Net2Phone. ``Voice over IP is not about cheap phone calls -- our strategy is to deliver voice services to IP networks and change the way people interact with the Internet using voice. By using our proven capabilities, technology, and experience, we can completely redefine the way people think about communicating.''  

Through a customized Yahoo! Fusion Marketing program that allows companies to find any audience, connect with anyone, and sell anything, Net2Phone services will be promoted throughout the Yahoo! network. In addition to advertisements and graphic merchant links integrated throughout multiple Yahoo! properties, Net2Phone will participate in Yahoo! Delivers, Yahoo!'s email direct marketing program.

About Net2Phone.  

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 .

Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to millions of individuals each month worldwide. As the first online navigational guide to the Web,www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance the Web presence of Yahoo!'s clients, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 23 local World properties outside the United States. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Califl.

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.