Net2Phone and Hughes Network Systems Announce
Jointly Developed VoIP via Satellite Service
Integrated, Bandwidth Efficient Capability Extends Satellite VoIP Quality
and Performance to Global Markets

Newark, NJ and Germantown, Md., April 28, 2003-Net2Phone Inc. (Nasdaq: NTOP), a leading provider of retail Voice over IP (VoIP) services, and Hughes Network Systems (HNS), the world's leading provider of broadband satellite solutions, today announced that they have jointly developed an integrated capability to deliver Net2Phone’s VoIP service over HNS’ DIRECWAY® broadband by satellite service. This is the first integrated satellite VoIP solution with bandwidth prioritization to be offered to enterprises and consumers globally.

HNS has integrated Net2Phone’s VoIP telephony interface into its advanced DW6040 Voice Appliance terminal, which will operate over the DIRECWAY satellite service worldwide. This will enable DIRECWAY customers to take advantage of Net2Phone’s high quality, competitively priced international long-distance service. HNS will market the integrated Net2Phone capability through its worldwide value-added reseller distribution channels.

This jointly developed capability allocates prioritization to voice packets over Internet data, thereby significantly improving the quality of service over competitor’s products and services. Demand for satellite broadband connectivity is growing worldwide, and is especially popular in markets such as Africa and Latin America, where terrestrial and Internet infrastructure is weak or non-existent and phone calling is cost prohibitive

“Our collaboration with Net2Phone extends the reach of affordable VoIP international calling worldwide, wherever there is satellite coverage,” said Matthew Mohebbi, vice president of international sales and marketing at HNS. “We believe that this joint offering will provide tremendous value to our customers. The integrated voice appliance is an inexpensive add-on that will protect the investment and generate additional revenues for DIRECWAY value-added service providers.”

This innovative project opens up a new channel of opportunities for both companies. The integration provides HNS with an effective telephony overlay for its existing DIRECWAY services. It illustrates HNS’ commitment to continually enhance its DIRECWAY offerings and provide additional value to its customers. For Net2Phone, offering high-quality VoIP over satellite demonstrates market leadership and initiative while expanding Net2Phone’s service offerings via HNS’ robust sales channels. Furthermore, the global reach of this cooperation is consistent with Net2Phone’s strategy to rapidly expand retail voice services over data networks in emerging markets worldwide.

“Net2Phone’s core competency has always been to layer voice over data networks. Satellite, especially in conjunction with HNS, the leading provider of satellite network services, is the next frontier in data networks that can be powered with voice, and we are excited to blaze that trail together,” said Yonah Lloyd, vice president, international market and business development at Net2Phone. “This is the first significant sign of convergence of VoIP and satellite, demonstrating true cooperation between service providers and technology enablers. Now both HNS and Net2Phone can deliver a very dynamic product offering that is complementary to each of their existing product lines.”

About Net2Phone
Founded in 1995, Net2Phone is the leading provider of high quality retail Voice over IP (VoIP) services, either directly or via a partner. 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. Incorporated within the company is its Cable Technologies Division, which has developed a fully outsourced standards-compliant telephony solution for cable operators. Traded on the NASDAQ under the symbol NTOP, Net2Phone’s strategic partners and investors include Liberty Media Corporation (NYSE: LMC.A; LMC.B) and IDT Corporation (NYSE: IDT; IDT.B). For more information about Net2Phone's products and services, please visit www.net2phone.com

About Hughes Network Systems
Hughes Network Systems, Inc. (HNS), a wholly owned subsidiary of Hughes Electronics
Corporation (HUGHES), is the world's leading provider of broadband satellite network solutions
for businesses and consumers, with more than 500,000 systems ordered or shipped to customers in 85 countries. HNS pioneered the development of high-speed satellite Internet access services, which it markets globally under the DIRECWAY® brand. In addition, HNS is a leading manufacturer of DIRECTV® satellite television receivers, having shipped more than 11 million to date.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, HNS maintains sales and support offices worldwide. The earnings of HUGHES, a unit of General Motors Corporation, are used to calculate the earnings attributable to the General Motors Class H common stock (NYSE: GMH). To learn more about HNS, please visit www.hns.com.

HUGHES, Hughes Network Systems and DIRECWAY are trademarks of Hughes Electronics Corporation. Other trademarks are the property of their respective owners.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Report and in the Company's other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.