Net2Phone Launches Enhanced Wi-Fi Offer
Available today, enhanced service allows Wi-Fi handset to
automatically scan and connect to available access points

San Jose, CA – March 8, 2005 – Net2Phone (NASDAQ: NTOP) today announced the launch of its enhanced Wi-Fi offer, now available directly through the Net2Phone web site at www.net2phone.com/voiceline. The VoiceLine XJ100 Wi-Fi Handset now automatically and intelligently scans and connects to available access points, allowing users to make and receive calls over open Wi-Fi hot spots.

“Wi-Fi enhances the mobility and flexibility of VoIP,” said David Span, Senior Vice President of Product Management and Marketing. “With the upgraded firmware, customers simply turn on their phone and it automatically connects to the open hot spot with the strongest signal. Net2Phone’s Wi-Fi service is both easy to use and provides the high quality and feature rich benefits of a VoIP service—a value for both customers and service providers alike.”

The XJ100 takes advantage of Net2Phone’s VoiceLine broadband telephony service with pricing plans beginning at $8.99 a month. The service allows users to choose from a U.S. local, U.S. toll-free or U.K. toll-free telephone number, regardless of where they reside globally. Some of the new benefits include:

• Automatic Upgrade & Configuration - Existing XJ100 users will automatically and transparently receive the upgrade on units already in use, requiring no customer intervention.
• Power Adapter – A 110v and 220v power supply and adaptor allows the phone to be easily transported and charged anywhere in the world.
• Connection based on Wi-Fi Profiles – End user can program ‘profiles’ including network name (SSID) and WEP (Wired Equivalency Privacy) key for home, work, hotel, etc. The handset then intelligently connects based on the profile network available.
• Class 5 Features – Such as call waiting and caller ID.
• VoIP Features – Such as on-line account management, email notification of new voicemail messages, and the ability to listen to voicemails through the online account center.

The VoiceLine XJ100 Wi-Fi Handset enables users in corporate, residential and public Wi-Fi network environments to benefit from VoIP calling. Net2Phone’s wireless VoIP solutions seamlessly integrate with a service provider’s front and back office systems allowing partners to offer a bundled solution of voice alongside their other product offerings. Target partners for the service include Wireless ISPs (WISPs), broadband service providers and other resellers. Net2phone also expects to introduce the XJ200, their second generation Wi-Fi handset early in the next few months.

About Net2Phone
Net2Phone (NTOP) provides VoIP PacketCable, SIP and wireless solutions around the world. As a leader in turn-key hosted VoIP telephony services, Net2Phone has routed billions of VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone provides partners with a SIP-based broadband telephony solution, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a high quality primary line service with features such as emergency calling. For more information about Net2Phone's products and services, please visit www.net2phone.com.

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

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