iLocus Names Net2Phone India VoIP Service Market Leader

Newark, NJ - April 15, 2003 - Net2Phone Inc. (Nasdaq: NTOP), a leading provider of retail Voice over IP (VoIP) services, today announced that iLocus, a leading industry research group, has named Net2Phone the leading provider of Internet telephony service in India in a recent study of the VoIP market. Net2Phone leads the Internet telephony market with a 62 percent market share of traffic over VoIP gateways in India, according to iLocus.

According to the iLocus report, released last week, approximately six million minutes of Internet telephony traffic are being originated per month by the Indian ISPs. iLocus forecasts Internet telephony traffic to grow to 211 million minutes by the year 2007. The regulatory environment for Internet telephony services in India is primarily limited to international calling using PCs via services offered by Indian ISPs. PC-and-device-to-phone services are a compelling alternative to traditional phone service in India, where there are only 3-4 telephones per 100 people.

“Net2Phone has leveraged its technical experience in Internet telephony and global brand awareness to establish potentially fruitful relationships in India by teaming up with the right companies,” said Jahangir Raina, Analyst at iLocus.

The Indian VoIP marketplace serves as an example of Net2Phone’s strategy to voice-enable service providers in newly deregulating markets. Net2Phone works with telecommunications operators and licensed service providers to quickly roll out cost-effective quality services. In India, Net2Phone has secured partnerships with numerous service providers.

“Being named as the leader in Internet telephony services is a true reinforcement of the Net2Phone strategy of focusing on emerging markets,” said Bryan Wiener, General Manager of Communications Services at Net2hone. “Since the deregulation of India’s telecommunications markets last year, we have steadily increases our minute usage and market share each quarter and become the leader in the market. We look forward to replicating our market share in other newly liberalizing markets in the future.”

About Net2Phone
Founded in 1995, Net2Phone is a leading provider of voice services over IP networks to consumers, businesses and carriers worldwide. With millions of users around the world, Net2Phone enables toll-quality calls between computers, telephones, and broadband devices utilizing IP networks. Recognized as the first company to bridge the Internet with the public switched telephone network, Net2Phone has routed billions of minutes of traffic over its award-winning network. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: LMC.A; LMC.B), AT&T (NYSE: T), and IDT Corporation (NYSE: IDT; IDT.B). For more information about Net2Phone's products and services, please visit www.net2phone.com.

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