Net2Phone Signs Full Production Cable Telephony Agreements with Coditel Luxembourg, Coditel Belgium and Est Vidéocommunication in France
Net2Phone Announces Warrant Incentive Program to Cable Operators
Cable operators incentivized to accelerate subscriber enrollments

NEWARK, NJ - November 4, 2004 - Net2Phone (NASDAQ: NTOP), a leading Voice over IP (VoIP) enabler for service providers, today announced that it has signed definitive agreements with Coditel Belgium, Coditel Luxembourg and Est Vidéocommunication in France, all members of the Altice One group, representing franchises passing 520,000 homes. These cable franchises will begin offering Net2Phone’s cable VoIP solution to their subscribers in the fourth quarter of 2004.

Net2Phone also announced that it has introduced a warrant incentive program, allowing selected cable operators to earn warrants to purchase shares of Net2Phone common stock. The Board of Directors has reserved up to five million shares for issuance under this plan. The execution of definitive agreements with cable operators that meet specific criteria will trigger warrant grants, which become exercisable as the cable operator reaches target telephony subscriber levels. The Altice One group represents the first of several cable operators who have opted to join the warrant program.

“We are very excited for our upcoming European VoIP launches, starting with Luxembourg and Brussels in the 4th quarter of 2004. Net2Phone allows us to deliver the highest quality service to our customers and the warrant program certainly creates an incentive for us and Net2Phone to jointly drive subscriber penetration,” stated Patrick Drahi, CEO of Altice One, “This also gives us the opportunity to share in Net2Phone’s successes as it delivers its compelling offer to other operators in Europe and elsewhere.”

“Altice One is a great partner for Net2Phone,” said Stephen Greenberg, Chairman of Net2Phone. “They are led by a smart and aggressive management team that understands the value of rolling out Net2Phone’s managed telephony services. The warrant program is specifically designed to accelerate subscriber enrollment and give early adopters an equity stake in Net2Phone’s growth. Net2Phone’s integrated, open-standards solutions give cable operators the ability to delivering the triple play and bundle voice alongside their video and Internet offerings, delivering entertainment, information and communications services to consumers.”

Since 1996, Net2Phone has been leading the way in retail VoIP services, and is focused on empowering cable operators with a suite of telephony solutions that provide them with the triple play of voice, video and data.

Net2Phone provides cable operators worldwide with a fully integrated and hosted telecommunications solution utilizing both DOCSIS compliant and SIP-based VoIP technologies. By leveraging a distributed architecture of software and equipment combined with a cost-effective service offering, Net2Phone enables cable operators to sell their own telephony solution to their customers utilizing their existing high-speed data network at low incremental costs. Calls are managed via Net2Phone’s back-office monitoring and management systems, providing a shared interface between the cable operator’s local access network and the public switched telephone network.

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 www.net2phone.com.

About Altice One
Altice One is a European Cable Venture whose purpose is to acquire, expand and consolidate cable clusters in Western Europe. At the end of 2002, Altice acquired Est Vidéocommunication, the leading cable operator in eastern France. Est Vidéocommunication provides Analog TV, Digital TV and Broadband Internet to nearly 200,000 RGUs. For more information about Est Vidéocommunication, visit http://www.estvideo.com/. At the end of 2003, Altice acquired Coditel Brabant, the cable operator of the town of Brussels, and Coditel SA, the cable operator of the town of Luxembourg. Coditel provides Analog TV and Broadband Internet to nearly 200,000 RGUs. For more information about Coditel, visit <http://www.coditel.be/> and <http://www.coditel.lu/>.

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 factors