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To: llwk7051@aol.com who wrote (3044)7/18/1999 3:54:00 PM
From: Kenneth E. Phillipps  Read Replies (1) | Respond to of 14638
 
NetSpeak (NSPK) activates 1 millionth webphone user. Nortel owns an equity stake in this company via an investtment by Bay prior to the merger.

Tuesday, Jul 13 1999 9:15AM ET

NetSpeak Activates 1 Millionth WebPhone User

BOCA RATON, Fla.--(BUSINESS WIRE)--July 13, 1999--

Voice over IP pioneer launches an Internet Telephony Service Provider

(ITSP) program to enhance capabilities for the WebPhone users

NetSpeak(R) Corporation (NASDAQ:NSPK) continues to demonstrate its leadership position in the Voice over Internet Protocol (VoIP) industry with today's announcement of the company's one millionth customer for its WebPhone(R) application. NetSpeak's award-winning WebPhone harnesses the power of the Internet and other TCP/IP-based networks to send and receive free long distance calls within its PC-to-PC community. The widespread adoption and use of the NetSpeak
WebPhone since its introduction, with more than 11 million calls completed, is testimony to the appeal of its powerful and user-oriented feature set.

NetSpeak's WebPhone is client software that allows the user to make a long distance call from a PC to another PC within the community and benefit from a cost-effective, high-quality, easy-to-operate
and feature rich application. The WebPhone offers unique functionality for point-to-point voice communication, text chat and real-time video over the Internet for the users that make up this technology savvy, PC-to-PC community.

"Today's announcement acknowledges the marketplace demand for next generation communication network solutions and NetSpeak is proud to continue to be at the forefront of this evolution," said
Michael R. Rich, NetSpeak President and Chief Operating Officer. "The WebPhone is a great asset for NetSpeak, not only as a superior stand-alone consumer client, but as a core component of our Call Management solutions, such as WebPhone(R)-to-Phone. WebPhone-to-Phone is NetSpeak's PC-to-Phone solution and the next innovative application for our PC-to-PC market."

To support this demand, NetSpeak is launching a promotional program that will allow ITSPs to provide enhanced capabilities to the WebPhone users. Additional ITSP benefits include private branding of the client for call termination, service activation links, and free advertising. This program will assist ITSPs in competing effectively against the PC-to-Phone solutions available in the marketplace today, such as IDT's (IDTC) subsidiary, Net2Phone. Two of the most prominent
ITSPs that have already signed up for this program are VirtualCom and Innofone. VirtualCom will be providing an IP-based network of competitive, worldwide long distance telephone and Web-based
enhanced services and Innofone.Com (OTCBB:INNF), based in Canada, recently selected NetSpeak to complete their worldwide VoIP network design and implementation.

"We applaud NetSpeak's initiative to offer their WebPhone community access to enhanced services such as PC-to-Phone. Their ITSP program exemplifies NetSpeak's commitment to accelerating the growth of the VoIP industry by assisting service providers in delivering the
value-added solutions their customers demand," said Alistair Woodman, Director of Packet Voice Technology at Cisco Systems. The WebPhone community will continue to benefit from the PC-to-PC free long distance calls they make today, while expanding their capabilities to include a PC-to-Phone solution. As a WebPhone user registers to receive their free upgrade to version 4.5, available in the Fall, they will have the ability to use the participating ITSPs for PC-to-Phone
services. To find out more about the ITSP program, visit the NetSpeak Web site at: netspeak.com.

NetSpeak's WebPhone-to-Phone solution is the platform for ITSPs to provide their PC-to-Phone services to meet customer demand. At the heart of this solution is NetSpeak's award-winning Gatekeeper, an H.323v2-compliant technology that controls the company's Call Management products, including WebPhone and Mini WebPhone(TM). In addition, it provides access to key back-end services such as billing and call detail recording. Central to the Gatekeeper is its flexible
scripting capabilities, which dictate the call flow behavior across the multiple gateway and IP telephony devices deployed in the network.

NetSpeak offers service providers a wide range of Call Management solutions that evolved from the core WebPhone application. These solutions are targeted at bringing flexibility and low-cost to the IP telephony and e-commerce arenas. A recent report by IDC estimates it is value-added solutions, like NetSpeak's WebPhone(R) 2nd Line(TM), WebPhone-to-Phone, WebPhone(R)eCommerce, and Internet Call Waiting(TM) that will be the crucial next step for service providers.
According to this report, there will be 21.6 million households subscribing to services like Internet Call Waiting by 2003, generating $399 million in service revenue.

About NetSpeak Corporation

NetSpeak Corporation (NASDAQ:NSPK) is a leading developer of Advanced Intelligent Network
(AIN) technologies for Internet Protocol (IP) telephony. NetSpeak continues to push new market
and technology boundaries with the release of their comprehensive suite of IP telephony solutions.

NetSpeak solutions enable today's market leaders to build next generation communications
networks by providing the market's premier intelligent software products that enable solutions for
concurrent, real-time interactive voice, video and data communications over packet networks.
NetSpeak's products provide service providers and enterprises with the flexibility they need to
cost-effectively add advanced communications capabilities - enabling an easy transition into the
rapidly growing Internet telephony market. For additional information visit NetSpeak's World Wide
Web site at netspeak.com.

NetSpeak, NetSpeak Logo, WebPhone and Mini WebPhone are Trademarks of NetSpeak
Corporation. Other brand and product names may be Registered Trademarks or Trademarks of their
respective holders.

Forward-looking statements (statements which are not historical facts) in this release are made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve risks and uncertainties,
including those risks and uncertainties detailed in the Company's filing with the Securities and
Exchange Commission.

CONTACT:

NetSpeak Corporation

Julie Bugbee

561-998-8700