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Net2Phone, Inc.
171 Main Street, Hackensack, NJ 07601 * (201) 928-2990
Business Description The company is a leading provider of voice-enhanced Internet communication services to individuals and businesses worldwide. Our services enable our customers to make low-cost, high-quality phone calls over the Internet using their personal computers or traditional telephones.
Offering
Information

Company has
gone public

Trading As  NTOP (NASNTL) Industry  Telecommunications (SIC 4813)
Type of Stock Offered  Common Shares Filing Date  05/18/1999
Domestic Shares Offered  5,400,000 Offer Date  07/28/1999
Foreign Shares Offered  0 Filing Range  $12.00 - $14.00
Company Shares  5,400,000 Offer Price  $15.00
Selling Shrhldrs Shares  0 Gross Spread  $1.050
Gross Proceeds  $81,000,000 Selling  $0.600
Expenses  - - Reallowance  $0.100
Post-IPO Shares  10,944,400 Employees  - -
Spun out from IDT
Primary
Underwriting
Group
Underwriter NameParticipationUnderwriter Phone
Hambrecht & Quist Incorporated Lead Manager (415) 439-3626
Bear, Stearns & Co. Inc. Co-manager (212) 272-4850
Deutsch Banc Alex. Brown Co-manager (410) 727-1700
Income
Statement
and
Cash Flow
Summary
  Prior
Audited
Income
Latest
Unaudited
Income
  Full Year Audited Figures 6 Months Ending
Figures in U.S. millions except per share data     07/31/1996 07/31/1997 07/31/1998 01/31/1998 01/31/1999
Revenues   - - 0.000 2.652 12.006 5.015 13.166
Income from Oper.   - - -0.508 -1.698 -3.543 0.896 -2.076
Net Income   - - -0.508 -1.698 -3.545 0.896 -2.076
E.P.S   - - -0.020 -0.050 -0.110 0.030 -0.070
Revenue Growth (%)      - - - 352.662   162.53
Net Income Growth (%)      - - - -   -
Oper. Profit Margin (%)    - - - - - - 17.87
Net Profit Margin (%)    - - - - - - 17.87
Cash Flow - Oper.     -3.71 0.35 0.43
Cash Flow - Inv.     -5.24 -1.55 -2.48
Cash Flow - Fin.     8.95 1.21 2.05
Balance Sheet
Summary
and
Financial
Ratios
Balance sheet as of: 01/31/1999 Financial Ratios
Total Assets    12.45 Current Assets    0.20 Current Ratio    0.01
Total Liab.    20.17 Current Liab.    20.17 Debt Ratio    162.07%
Total Equity    -7.73 Working Cap.    -19.97 Debt to Equity Ratio    -
Cash    0.01    Return on Assets   -
Use Of
Proceeds
The proceeds from the proposed offering will be used to repay a portion of a note outstanding to IDT, for the development of strategic Internet relationships, for advertising and promotion, for research and development, for upgrading and expanding our network and for general corporate purposes including working capital.
Legal Counsel
Registrar
Auditor
Issuer's Law Firm  Morrison & Foerster
Bank's Law Firm  Brobeck, Phleger & Harrison
Registrar/Transfer Agent  American Stock Transfer & Trust Co
Auditor  Ernst & Young
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Last updated: 09/29/1999 3:51:56 AM
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