Net2Phone Closes Public Offering

NEWARK, N.J. -- Net2Phone, Inc. (Nasdaq: NTOP - News) today announced that the underwriters of its public offering of 10.5 million shares of common stock have exercised, in part, their over-allotment option and purchased an additional 1 million shares of Net2Phone's common stock at $4.50 per share. The sale of the additional 1 million shares was consummated earlier today with the consummation of the sale of the 10.5 million shares. In total, the public offering, plus an additional 2.5 million shares purchased by IDT Corporation and Liberty Media at $4.50 per share, generated gross proceeds to Net2Phone of approximately $63 million. Net2Phone intends to use the proceeds from the offerings for general corporate purposes, capital expenditures, and working capital, including funding its cable telephony business.

Net2Phone Inc.