Rural West Signs Agreement with Net2Phone for Cable Telephony Deployment
Net2Phone to Enable NCTC member with VoIP for
Armed Forces in the US and Internationally

NEWARK, NJ- October 21, 2004 - Net2Phone (NASDAQ: NTOP), a leading Voice over IP (VoIP) enabler for service providers, today announced that it will provide cable telephony services to Rural West, a US cable operator serving numerous military bases. Rural West, a member of the National Cable Television Cooperative (NCTC), plans to roll out telephony with Net2Phone before the end of the year in cable systems across Colorado, Arizona, California, Hawaii and selected military bases overseas.

Through outsourcing its telephony deployment to Net2Phone, users in Rural West’s footprint can benefit from cost-effective local, long distance and international phone service, including features such as call waiting, caller ID, voice mail and online account management tools.

“Rural West’s enthusiasm to roll out telephony can serve as a model for small and mid-sized cable operators who want to offer their customers phone service with low risk and high quality,” said Stephen Greenberg, CEO of Net2Phone. “We believe our value proposition as an outsourced telephony provider that supports multiple solutions and standards makes us the right choice for cable operators looking to quickly and cost-effectively roll out phone service. In addition, we at Net2Phone are especially proud to service the men and women of our armed forces, enabling them with an easier and more cost efficient method of communication.”

“For many soldiers the phone is an important way to stay close to loved ones while away from home,” said Dave Boland, Chief Operating Officer at Rural West. “With Net2Phone we are able to offer a high-quality, bundled phone service that allows our armed forces on active duty to save money on calls while keeping touch with their family and friends.”

Rural West will maintain ownership of its telephony subscribers and brand, and will provide customer service and technical support. Net2Phone will enable provisioning and billing integration; a CLASS 5 capable switching platform; advanced features such as Caller ID; network management tools; PSTN interconnects, and operator services/directory assistance. Customers of participating NCTC members benefit from cost savings in addition to receiving the convenience of a one-stop-shopping bundled offer of cable TV, high-speed Internet access and cable modem telephony services.

About Net2Phone
Net2Phone provides VoIP PacketCable, SIP and wireless solutions around the world. As leaders in enabling telecom service providers and cable operators with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: L; LMC.B) and IDT Corporation (NYSE: IDT; IDT.C). For more information about Net2Phone's products and services, please visit <http://www.net2phone.com>.

About Rural West
RuralWest is an integrated Communication services company providing multimedia services to military bases and surrounding rural communities. The company offers digital cable TV service, high speed Internet, voice over Internet, Wi-Fi services and cellular telephone service to military personnel and their families at its locations in California, Arizona, Colorado, and Hawaii.

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 press release and in the Company's 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 factor.