Panasonic And Net2Phone Team to Create New Phone Providing Integrated Conventional and VoIP Service - Company Business and Marketing

Cambridge Telcom Report, Jan 10, 2000

Kyushu Matsushita Electric Industrial Co., Ltd., a subsidiary of Matsushita Electric Industrial Co., Ltd., (Panasonic) Wednesday announced a cooperative agreement with Net2Phone, Inc., a leading provider of voice enhanced Internet communication services, to integrate Internet-based phone service into future Panasonic consumer telephone products. The "One Touch" Voice over Internet Protocol (VoIP) service allows consumers a choice on the same phone between regular long distance phone service or low-cost Internet-based long distance service, simply by pressing a button on their phone.

Panasonic, the leader in audio/video and telephone technologies, will provide the first telephone that can transmit both public switched and IP phone calls. Instead, the Panasonic phone transmits the voice signals directly over the Internet utilizing Net2Phone's award-winning network and technology.

"If you are using an Internet system to send voice, it is inherently cheaper than using traditional analog switching systems," explained John McNenney, assistant general manager of Panasonic Consumer Telephone Products for Panasonic Consumer Electronics Company. "These technologies show the potential of the Internet to deliver substantially lower cost long distance services. We chose to work with Net2Phone because they are known to deliver superior quality VoIP systems for computer users. We saw the opportunity to transfer their technology to ordinary phones."

The Internet phone enables consumers to access this service easily without having to log on to the Net2Phone site. Instead, they simply register by phone through a short voice-mail interview, and select a competitive flat fee arrangement. By pushing the phone's Internet button, customers gain instant access to Net2Phone's VoIP services.

"This agreement marks a major paradigm shift in the telecommunications industry, enabling ordinary phones to be used as a tool to route IP calls. Incorporating our services into Panasonic's new dual-mode phone presents an excellent opportunity for Net2Phone," said David Greenblatt, Chief Operating Officer of Net2Phone. "Ease of use is always essential when dealing with new technologies, and we are happy to be working with Panasonic to deliver user friendly and cost-effective services."

Matsushita Electric (Panasonic)

Osaka, Japan-based Matsushita Electric Industrial Co., Ltd. (MEI) (NYSE: MC), which is best known for its Panasonic brand products. MEI is one of the world's leading producers of electronic and electric products for consumer business and industrial use. For more information on Matsushita Electric and Panasonic, visit www.panasonic.com.

MEI subsidiary Kyushu Matsushita Electric Co., Ltd. manufactures a wide range of advanced products, including telecommunications equipment, office automation equipment, factory automation equipment, innovative devices and component, and water and environment products based on digital technology and new production systems. The company operates 10 manufacturing facilities in Kyushu, Japan, one production plant each in Malaysia, Thailand, Mexico and the United Kingdom, and one R&D lab in the United States.

Panasonic Consumer Electronics Company is a unit of New Jersey-based Matsushita Electric Corporation of America, MEI's principal North American subsidiary.

Net2Phone

Net2Phone (NASDAQ: NTOP), is a leading provider of voice enhanced Internet communications services to individuals and businesses worldwide. Net2Phone enables people to place low-cost high quality from their computer, telephone, or fax machine to any telephone or fax machine in the world. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the Web and other IP networks. For additional information about Net2Phone, visit their web site on the Internet at: www.net2phone.com.