NTOP Net2Phone (MM)

Net2Phone (NASDAQ: NTOP) a pioneer and innovator in the field of Voice over Internet Protocol (VoIP), announced today that it has secured its 31st patent issued by the United States Patent and Trademark Office. The patent titled "System and Method for Managing a Flow of Network Status Messages at a Network Operations Console" was issued on December 27, 2005. This patent, US 6,981,035, describes a technique to manage the flow rate of network status messages to a remote network operations console. Many networks have suffered failures due to an overrun of network management information. This technique enables the efficient and cost-effective consolidation and correlation of vast amounts of data in Net2Phone's hosted Network Operations Centers (NOCs) where it can then be rapidly reviewed and analyzed in real time and used to facilitate the delivery of high quality voice services throughout the Net2Phone network. Internally the software that displays the status of Net2Phone's network is referred to as the "real-time dashboard." Net2Phone also offers the benefits of this technology to cable network operators. The CableLine(SM) VoIP service is built around a similar operational toolset called Cable Voice Operations Support System (CVOSS). Using CVOSS an MSO partner can optimize the management of its networks and the applications that run over them. This toolset becomes critical to an operator's ability to deliver carrier-grade service to its customers as subscriber penetration increases and call volumes begin to scale. Jeff Goldberg, Chief Scientist of Net2Phone's Cable Telephony division, and John Berry, Strategic Projects Development Manager, developed this patent. Mr. Goldberg and Mr. Berry are members of the Net2Phone research and development team that have pioneered innovation in VoIP technology and networks over the last decade. The United States Patent and Trademark Office (USPTO) in Alexandria, Virginia reviews all applications for patents. The USPTO receives approximately 350,000 patent applications each year. The review process for this particular patent took more than six years. This patent was applied for in June 2000. The full text of this and all patents issued after 1970 are available at the USPTO website www.uspto.gov. Commenting on the patent, Liore Alroy, Net2Phone CEO said, "Net2Phone has always been a technology leader and this year was no different. As a result of the efforts of many people at Net2Phone, we now have 31 patents in the United States. This is an impressive portfolio for a company of our size and it provides us with recognition as an innovator in our industry." About Net2Phone Net2Phone provides PacketCable, SIP and wireless solutions around the world. As a leader in turnkey 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-type 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 satisfy in a timely manner the requirements of Section 404 of the Sarbanes-Oxley Act and the rules and regulations adopted pursuant thereto, 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.