Andrea Electronics Corporation (OTCBB: ANDR.OB) News Release - 8/2/2001

Andrea Electronics Corporation Expands Into Internet Telephony With EchoStop(TM) Technology

MELVILLE, N.Y., Aug. 2 /PRNewswire/ -- Andrea Electronics Corporation (Amex: AND), a leading manufacturer of hardware and software technologies that optimize the performance of speech-enabled applications and other voice user interfaces, announced today the continuation of its strategy to deploy Andrea's EchoStop(TM) as a product enhancement within several key industries such as telecommunications, automotive telematics and PC-based voice communications. EchoStop is an advanced acoustic echo cancellation software algorithm that enables users to communicate hands-free and headset-free while enjoying significant improvement in overall sound quality.

As part of this overarching strategy, the Company announced today that it has entered into a license agreement with Net2Phone, Inc., the leading global provider of voice and enhanced services over IP networks. Under the terms of this agreement, Net2Phone will incorporate EchoStop within its award-winning PC-based software product and market the service to its current users.

"The addition of Andrea's EchoStop technology to Net2Phone's service demonstrates Net2Phone's continued commitment to offering innovative solutions aimed at delivering the highest quality communication service available on the Internet today," said Bryan Wiener, Senior VP and General Manager of Communications Services of Net2Phone, Inc. "As individuals continue to explore the possibilities created by the Internet, the ability to offer unique solutions that enhance the users' experience will transform Voice over IP into the preferred method of calling."

"We are excited to announce the distribution of our EchoStop technology through this newly established relationship with Net2Phone," said Douglas J. Andrea, Co-Chief Executive Officer of Andrea Electronics Corporation. "As the clear leader in the PC-to-phone space, Net2Phone represents a significant channel partner for our EchoStop technology. Together, we are enabling the best full-duplex hands-free communication interface in the PC-to-phone market."

EchoStop is an advanced acoustic echo cancellation software algorithm that allows true full duplex communication through a PC, enabling hands-free, speakerphone capability. The software algorithm's proprietary processing enables seamless residual echo suppression capabilities providing clear communications, even in highly reverberant, live room environments. EchoStop also incorporates noise reduction algorithms to reduce the background noise of both input and output audio, thus preventing the accumulation of interfering noise over multi-point conferencing scenarios.

About Andrea Electronics:

Andrea Electronics Corporation designs, develops and manufactures audio technologies and equipment for enhancing applications that require high performance and high quality voice input. The Company's patented Active Noise Reduction (ANR READY(R)) earphone, Active Noise Cancellation (ANC) near-field microphone, patented Digital Super Directional Array (DSDA(R)) and patent-pending Directional Finding and Tracking Array (DFTA(TM)) far-field microphone technologies enhance a wide range of audio products to eliminate background noise and ensure the optimum performance of voice applications. Applications for the Company's technologies include: speech recognition programs, Internet telephony, video/audio conferencing, automobile PCs, home automation systems, hand-held devices and multiplayer online games, among others. OEM and software publisher customers and strategic partners of Andrea Electronics include: IBM Corporation, Intel Corporation, BMW of North America, Inc., Donnelly Corporation, Clever Devices, Ltd., Clarion Corporation of America, Microsoft Corporation, Audio-Technica, U.S., Inc., VCON, Ltd., Lotus Development Corporation, Fonix Corporation, Centra, Net2Phone, Inc., among others. Visit Andrea Electronics' websites at http://www.AndreaElectronics.com or http://www.AudioCommander.com or call 1-800-707-5779.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve matters that are subject to certain risks, uncertainties and assumptions that are difficult to predict, including economic, competitive, governmental, technological and other factors, that may affect the business and prospects of Andrea Electronics Corporation and Net2Phone, Inc. (collectively the "Companies"). For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Companies' results include, but are not limited to, the Companies' abilities to expand their customer base, the Companies' abilities to develop additional and leverage existing distribution channels for their products and solutions, dependence on strategic and channel partners including their abilities to distribute the Companies' products and meet or renew their financial commitments, the Companies' abilities to address international markets, the effectiveness of the Companies' sales and marketing activities, the acceptance of the Companies' products in the marketplace, the timing and scope of deployments of the Companies' products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Companies' products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Companies' abilities to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Companies' abilities to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Report and in the Companies' other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Companies as of the date thereof, and the Companies assume no obligation to update any forward-looking statement or risk factors.

SOURCE: Andrea Electronics Corporation

CONTACT: Richard A. Maue, Chief Financial Officer, or Lauren Rivera, Marketing Communications Manager, both of Andrea Electronics, +1-800-442-7787/

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