IDT's Debit Division Diversifies

Hackensack, NJ -- Oct. 22, 1998 -- IDT (NASDAQ: IDTC) today announced that it has expanded and diversified its debit card division.

Since acquiring a majority interest in Union Telecard Alliance, IDT has expanded its offering of retail debit cards by adding more specialized phone cards and expanding its sales and marketing efforts nationwide. In conjunction with its outstanding growth, IDT is opening offices in New Jersey and California to handle the growth and expansion of services.

IDT has also secured partnerships with five additional distribution companies which have merged their operations into the Company's to provide additional distribution channels and offices in Washington, DC, Connecticut, New York, Ohio, and Florida. These companies have chosen to work with IDT based on IDT's pricing, sales and marketing expertise and reliability.

By gaining additional distribution channels, the Company expects to diversify its distribution channels, reduce overall costs and improve margins. By controlling these distribution channels, the Company expects to push long-term growth interests and explore additional marketing and promotional opportunities.

The Company has been adding new product lines and features to its calling cards, including a new card which links phone cards in America with callback accounts outside the U.S. For example, if someone purchases an IDT phone card in New York to call a relative in Mexico, he can have his relative use his debit card PIN code so that the relative can use IDT's callback technology to call back to New York using the same account number.

"By offering more diversified services and distribution channels under the IDT Debit umbrella, we have the resources, marketing expertise, and pricing to emerge as the leader in pre-paid services," said Joshua Winkler, Executive Vice President of Sales, who has moved over to New York City to head the day-to-day operations of the retail debit business.

IDT is a leading emerging multinational carrier that combines its position as an international telecommunications operator, its experience as an Internet service provider and its leading position in Internet telephony to provide a broad range of telecommunications services to its wholesale and retail customers worldwide. The company provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, Internet access and, through its Net2Phone product offerings, Internet telephony services including Net2Phone Direct, Net2Fax, and Click2Talk.

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements involving risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements, include, but are not limited to, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet Telephony industry, IDT 's ability to operate the services described on a large scale commercial level. For additional information regarding these and other risks associated with the Company's business refer to the Company's reports filed with the SEC.