"M&M's"(R) Chocolate Candies Selects IDT To Be Exclusive Calling Card Provider

Hackensack, NJ - December 22, 1998 - IDT (NASDAQ: IDTC) today announced it has signed an exclusive multi-year supply and distribution agreement with "M&M's"(R) Chocolate Candies, the No. 1 confectionery brand in the world, to provide specially-branded prepaid phone cards. Through a strategic marketing relationship, "M&M's"(R) cards will be available to all of the retailers that currently carry "M&M's" (R) Chocolate Candies, a product manufactured by M&M/MARS.

The phone cards will feature the likenesses as well as voices of the "M&M's"(R) Brand Characters currently featured in the "M&M's"(R) advertising. Additionally, IDT will be providing its own distribution channels for the "M&M's"(R) cards through its partnership with Union Telecard Alliance, which distributes phone cards to newsstands and grocery stores throughout the United States.

 

As the leading provider of end-to-end calling card solutions, IDT will handle the entire call process of the phone cards, including call routing, authorization, pre-paid platform, and billing of the "M&M's"(R) cards.

Ed Miller, Vice President of Corporate Sales for IDT stated, "The `M&M's(R)' branded card using the characters' voices allows us to extend our product line with a universally recognized reputation that can differentiate IDT from its competitors. In the rapidly growing market for prepaid telephone services, this agreement provides IDT an immediate and significant advantage. We look forward to a long and mutually beneficial relationship with 'M&M's'(R)."

"The agreement with IDT is very exciting because it provides another great opportunity for showcasing the "M&M's"(R) Brand to its very important consumers," stated Pat D'Amato, M&M/MARS spokesperson. "The `M&M's'(R) branded telephone cards build affinity between the `M&M's'(R) Characters, brand and consumer."

 

Red, the Headline Grabbing "M&M's"(R) Spokescandy had this to say, "When I heard I was going to be featured on phone cards and consumers will hear my voice when they place a call, I was overwhelmed with the idea. Then I learned I had to share the limelight with the other popular characters, Yellow, Blue and Green. Oh, well that's life!"
Estimated to become a $3.6 billion market by 2001 (up from only $1.3 billion in 1997), the pre-paid disposable phone card market is growing at a rapid pace. IDT is keeping up with the growth, primarily due to its aggressive rates and extensive distribution channels.

Prepaid telephone cards offer consumers an opportunity for substantial savings and convenience when placing domestic and international local and long distance calls. Private label phone cards, in particular, serve as a lucrative promotional item, generating brand name awareness by ensuring that the Company's name is in each customer's wallet at all times. For more information on IDT's promotional and private label prepaid calling services, call 1-800-786-8438.

 

"M&M's"(R) is a registered trademark of Mars, Incorporated. M&M/MARS, a division of Mars, Incorporated, manufacturers and distributes a wide variety of high-quality snackfood products.

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. For more information about IDT's Internet telephony services, please visit www.net2phone.com.