Hosted Communications Service Now in Cafes Serving Millions of Customers

Following several months of extensive in-store testing, and positive customer response to the deltathree solution, easyEverything launched the service throughout its network of cafes in Europe and the United States. Currently, easyEverything stores have over two million log-ins per month, with the average user spending over 45 minutes online. The largest store, near Times Square in New York City, has 800 PCs with Internet access and is open 24 hours a day. Initially serving 16 cities, some with multiple cafes, easyEverything's plans include franchising the stores to allow for even greater expansion.

easyEverything is selling easyEverything-branded phone cards, powered by deltathree, over the counter at each cafe. All workstations in the stores will have broadband capacity and telephone handsets, making PC-to-Phone calls convenient and easy to use. The phone cards can also be used outside the cafe, from any regular telephone, for Phone-to-Phone calls. As part of the launch program, easyEverything is offering a discounted promotional calling card to all its customers.

Commenting on the performance of deltathree's Hosted Communications Solution, Maurice Kelly, CEO of easyEverything, stated, "deltathree's solution is unsurpassed in terms of quality, reliability, and support. It's a total package that is user-friendly, and easy to implement. Value-added services such as Internet telephony are strategically important for easyEverything, as we strive to generate revenue from areas outside of our core business. If the initial trials are any indication of future success, we believe this service will be extremely popular with our customers."

Noam Bardin, President and CEO of deltathree, stated, "deltathree is very pleased with the success of its recent in-store trials with easyEverything. We predict the successful take-up of this service by easyEverything's customers will lead to significant revenues for deltathree over the next few years. As each new store opens, we will realize greater profitability."

deltathree's Hosted Communications Solution is a turnkey, private-branded Voice over IP offering that allows any company to provide telecommunications services to its customers. In addition to routing all calls through its award-winning network, deltathree also provides all necessary back-end services for easyEverything including infrastructure, account provisioning, billing, e-commerce and customer support.

About deltathree, Inc.

Founded in 1996, deltathree, Inc., is an IP communications network and leading provider of IP-based products and services. The company's Hosted Communications Solution enables customers to strengthen their brands and improve shareholder value by hosting voice services and providing the means to support them. In addition to its VoIP product offerings, deltathree provides back-end VoIP support services including Billing, Operations Management, Marketing Support, and Network Management. deltathree routes IP telephony traffic to over 160 countries and for 18 international telecommunications carriers. The company received the Best Built Public Network Award for excellence in IP services/applications at SUPERCOMM 2000, and was named the best IP telephony service by SmartMoney magazine and PC World Magazine.

About easyEverything

easyEverything is the chain of the world's largest Internet cafes. It is the brainchild of Stelios Haji-Ioannou, the easyGroup chairman, who also founded easyJet.com and easyRentacar.com. easyEverything has developed a new way for people to access the Internet outside the home. Stelios, having observed how popular small cyber cafes were, in spite of the costly rates and often "nerdy" atmospheres, decided to apply "supermarket economics" to what amounted to little more than a cottage industry at the time. The result is the cheapest and best Internet access money can buy outside the home. As people become more and more dependant on the Internet, they need access to it at home, at work, and when on the move. Moreover, for those of us not privileged enough to own a PC with Internet access, easyEverything provides the easiest way to get online at affordable prices. easyEverything has removed all the barriers to entry to the Internet revolution.

For more information, contact Jarrett Bens of deltathree, Inc. at (212) 500-4869 and visit our web site at http://corp.deltathree.com. For investor relations, contact Erik Knettel of Thomson Financial/Carson at (212) 701-1963.

For more information about easyEverything, contact James Rothnie at + 44 (0) 20 7907 7815.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect deltathree's business and prospects and cause actual results to differ materially from these forward-looking statements.

Among the factors that could cause actual results to differ are the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, deltathree's limited operating history, changes of rates of all related telecommunications services, the level and rate of customer acceptance of new products and services, legislation that may affect the Internet telephony industry, rapid technological changes, and other risk factors contained in deltathree's periodic reports on Form 10-K and Form 10-Q on file with the SEC and available through http://www.sec.gov.

SOURCE deltathree, Inc.

CONTACT:          Jarrett Bens of deltathree, Inc. 212-500-4869; or investor
                  relations, Erik Knettel of Thomson Financial-Carson, 212-701-1963, for