Telemar Selects Net2Phone to Deliver Broadband Telephony Solutions; Brazil's Largest Telecom Operator to Launch Residential VoIP Service Using Net2Phone's End-to-End Telephony Platform

Net2Phone will provide Telemar with the platform services thatallow them to deliver Brazilian residents full-featured, SIP-basedbroadband telephony. Telemar plans to market its telephony servicesdirectly to its existing telecom and high-speed data customers as wellas via multiple marketing channels.

"Partnering with Telemar, one of the largest telcos in LatinAmerica, clearly confirms the quality and reliability of our solutionsand serves as a testament to our ability to add incremental value to aservice provider's portfolio," said Jonathan Reich, CEO of Net2PhoneGlobal Services. "We are excited to work with Telemar to drive theexpansion of digital telephony in Brazil and look forward to expandingour relationship with additional offerings in the future."

Brazil is the largest of the recently liberalized South Americantelecom markets and provides a great opportunity for Net2Phone toshowcase its growing suite of hosted VoIP solutions. SupportingTelemar in Brazil is another step in Net2Phone's strategy to enablethe strongest local retail partners to deliver the highest qualityIP-based voice services internationally.

About Tele Norte (NYSE: TNE)

Tele Norte Leste Participacoes S.A. is the largesttelecommunication company services in South America, which is marketedunder their Telemar brand name. Tele Norte controls the Telemar NorteLeste, which has concessions from the Brazilian Government to providefixed-line telecommunication services in the Region I, which consistsof sixteen states including the state of Rio de Janeiro. The Region Icovers approximately 64% of the country, has a population of 93million and produces approximately 40% of the country's GDP. TeleNorte has approximately 17 million lines installed, of which 99,9%have been digitized, and a fiber optic cable network of over 31,500kilometers.

About Net2Phone

Net2Phone provides VoIP PacketCable, SIP and wireless solutionsaround the world. As a leader in turn-key hosted VoIP telephonyservices, Net2Phone has routed billions of VoIP minutes globally,servicing more than 100,000 users in the US as well as hundreds ofthousands of more overseas. Net2Phone provides partners with aSIP-based broadband telephony solution, calling cards, prefix dialingand enterprise services in over 100 countries. Net2Phone's PacketCableplatform provides cable operators with the ability to deliver a highquality primary line-type service with features such as emergencycalling. For more information about Net2Phone's products and services,please visit www.net2phone.com.

This press release contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Theseforward- looking statements involve risks and uncertainties and actualresults could differ materially from those discussed in theforward-looking statements. For this purpose, any statements containedin this press release that are not statements of historical fact maybe deemed to be forward-looking statements. Factors which may affectthe Company's results include, but are not limited to, the Company'sability to satisfy in a timely manner the requirements of Section 404of the Sarbanes-Oxley Act and the rules and regulations adoptedpursuant thereto, the Company's ability to expand its customer base,the Company's ability to develop additional and leverage its existingdistribution channels for its products and solutions, dependence onstrategic and channel partners including their ability to distributethe Company's products and meet or renew their financial commitments,the Company's ability to address international markets, theeffectiveness of the Company's sales and marketing activities, theacceptance of the Company's products in the marketplace, the timingand scope of deployments of the Company's products by customers,fluctuations in customer sales cycles, customers' ability to obtainadditional funding, technical difficulties with respect to theCompany's products or products in development, the need for ongoingproduct development in an environment of rapid technological change,the emergence of new competitors in the marketplace, the Company'sability to compete successfully against established competitors withgreater resources, the uncertainty of future governmental regulation,the Company's ability to manage growth, obtain patent protection, andobtain additional funds, general economic conditions and other risksdiscussed in this Press Release and in the Company's filings with theSecurities and Exchange Commission. All forward-looking statements andrisk 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-lookingstatement or risk factors.