NEWARK, NJ - September 14, 2000 -- Net2Phone Inc. (NASDAQ: NTOP) and LG Electronics, a major global player in electronics & telecommunications, today announced that they have signed an agreement whereby Net2Phone’s Voice over IP technology will be incorporated into LG’s Voice over IP (VoIP) gateways for sale throughout the world. Through this relationship, LG customers will be able to access Net2Phone’s global network for low-cost efficient VoIP calling to any telephone or Internet-enabled PC in the world.

The LG gateway is a compact system that provides real time telephone and fax communications with interfacing capabilities from the PSTN (public switch telephone network) to the Internet.

Distributed globally through robust reseller channels, LG’s VoIP gateways reach small-to-mid sized businesses around the world, enabling them to place phone calls using Net2Phone’s private IP network at significantly reduced rates.

“This new opportunity with LG provides a tremendous growth prospect for Net2Phone in markets around the world,” commented Jonathan Rand, Executive Vice President of Net2Phone. “This relationship leverages Net2Phone's global VoIP network with LG's equipment and worldwide reseller network. We look forward to working with LG on future products that include IP Telephones, IP PBX systems and voice enabled home networking solutions."

“We are proud to be teaming up with Net2Phone, a true leader in the IP Telephony industry,” said J.S. Lee, Executive Vice President of LG. “By joining Net2Phone’s network, we increases our customers’ alternatives of getting cost-effective termination rates worldwide.”

Net2Phone is a leading provider of voice-enhanced Internet communications services to individuals and businesses worldwide. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the web and other IP networks. Net2Phone's award-winning products include PC-to-phone, PC-to-fax, free PC-to-PC calling, and free voicemail capabilities. For more information on Net2Phone’s services, please visit www.net2phone.com.

LG Electronics is a major global player in electronics & telecommunications, operating 60 subsidiaries in 34 countries with 54,000 employees worldwide. LGE focuses on Digital TV, CD-RW, DVD, CD-ROM, DVD-ROM Drives, PCs, Monitors, Mobile Handsets and PDPs. LGE is strengthening core competencies even more to further its reputation as the "Digital Leader" in electronic products and equipment in the digital era. LGE is headquartered in Seoul, Korea, and was founded in 1958. Additional information is available at www.lge.com .

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, among other things, Net2Phone's expected operating performance for the three months ending October 31, 2000 and thereafter. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet telephony industry, and Net2Phone's ability to operate the services described on a large scale commercial level.The forward-looking statements are made as of the date of this press release, and Net2Phone assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth herein and the other information set forth from time to time in Net2Phone's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.