Net2Phone to Provide VoIP Services to Colombia's Largest Telecommunic

Net2Phone to Provide VoIP Services to Colombia's Largest Telecommunications Operator

    Business Editors/High-Tech Editors

    NEWARK, N.J. & BOGOTA, Colombia--(BUSINESS WIRE)--Feb. 23, 2005--

ETB Launches Co-Branded VoIP Services with Net2Phone for Consumers and Corporations Throughout Colombia
    Net2Phone (NASDAQ:NTOP) and Empresa Telecomunicaciones de Bogota (ETB), the largest telecom operator in Colombia, today launched a joint offering of a complete suite of co-branded consumer and corporate VoIP services across Colombia. ETB is the first and only Colombian telecom operator to offer a full suite of VoIP services to consumers and businesses, including Net2Phone's VoiceLine(SM) broadband telephony service and its MaxPVN(SM) corporate service.
    Under the terms of a five-year definitive agreement, ETB, which dominates the Colombian marketplace with more than two million customers, will offer local, long distance and international voice services utilizing Net2Phone's VoIP services. The co-branded ETB and Net2Phone broadband telephony residential and corporate services come with local Colombian phone numbers and are also being offered as an integrated bundle with ETB's DSL service. Attractive pricing for packages, which ETB estimates can save consumers more than 50% on their existing phone service, includes pricing for calls to the United States as low as COP $285 (approx. 11(cents) USD) per minute.
    "Our alliance affirms the value that Net2Phone brings to market leaders like ETB by providing them with scalable, low cost and timely VoIP solutions that can meet their customer needs and business requirements," said Jonathan Reich, CEO of Net2Phone Global Services. "VoIP is a must have for incumbents such as ETB to remain competitive against new market entrants, and Net2Phone is well-positioned to help them by quickly and easily meeting their business goal, driving usage and broadband penetration."
    "By partnering with Net2Phone, we can now reach out to customers across Colombia, immediately meeting their demands for VoIP while minimizing the investment otherwise needed to build and deploy our own solution," said Rafael Orduz, ETB's President. "Net2Phone's world-class leadership and experience benefit our customers and help drive our goal of ubiquitous broadband availability throughout our country."
    This partnership builds on Net2Phone's strategy to offer hosted VoIP solutions to partners globally, enabling them to expedite their time to market while benefiting from outsourcing their deployments to a provider that has the technical expertise, robust back-office and worldwide network to support multiple services on a single platform. Net2Phone can help reduce partners' capex and opex by managing all the back office billing, account generation, rating, routing and provisioning, while partners are responsible for sales, marketing, first level customer support and distribution.

    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 oeprators 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.

    About ETB

    Founded in 1884, Empresa Telecomunicaciones de Bogota or ETB is Colombia's incumbent Telco provider for Local telephone services, and a provider of Internet and long distance services nationwide. ETB currently provides dial tone to over 2 million subscribers within Bogota and high speed Internet to 28,000+ subscribers. In addition ETB has 165,000+ dial-up Internet customers nationwide and is a partner in 'Ola', one of the countries largest mobile providers.

    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.

--30--TB/ny*

CONTACT: Net2Phone Corporate Communications Dawn Orlinsky, 973-438-3508 dorlinsky@net2phone.com

KEYWORD: NEW JERSEY COLOMBIA INTERNATIONAL LATIN AMERICA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE PRODUCT SOURCE: Net2Phone, Inc.

Copyright Business Wire 2005