American Steve Centanni and New Zealander Olaf Wiig of US organisation Fox News were dropped off at a Gaza City beach-front hotel.
The captors had called for the release of "Muslim prisoners" in the US.
The US had rejected the demands.
Their abduction was one of the longest of foreigners in Gaza in years.
The pair were seized from their vehicle near the Palestinian security services' headquarters on 14 August, and held by a previously unknown group calling themselves the Holy Jihad Brigades.
"I am really fine, healthy, in good shape and so happy to be free" said Steve Centanni
Mr Centanni told Fox News they had been forced to convert to Islam at gunpoint.
"I have the highest respect for Islam... but it was something we felt we had to do because they had the guns and we didn't know what the hell was going on," he told the network by telephone from Gaza City.
In the video released on Sunday, the journalists read haltingly from prepared statements, in which they criticised Western intervention in Iraq and Afghanistan.
US President George W Bush and UK Prime Minister Tony Blair were accused of fanning the flames of anger in the Muslim world.
Following their release, the men hugged colleagues inside the hotel lobby in Gaza before running up the stairs, Fox News footage showed.
"I am really fine, healthy, in good shape and so happy to be free," Mr Centanni said.
The pair were held longer than any other journalists abducted in the Gaza Strip.
Mr Wiig's wife had called for their release and met Palestinian Prime Minister Ismail Haniya to discuss the kidnappings.
A deadline set by the kidnappers for their demands to be met expired at midday (0900 GMT) on Saturday.
Over the past two years, a number of foreigners have been kidnapped in Gaza. All have been freed unharmed.
reposted: http://news.bbc.co.uk/1/hi/world/middle_east/5290374.stm