CONTACT: Sarah Hofstetter IDT Public Relations 201-928-2882

IDT Announces 5 Cent Domestic Rate for Net2Phone Direct
New Internet long distance rate will be reduced to 5 cents per minute on domestic calls from New York and Chicago

Hackensack, NJ – January 19, 1998 – IDT Corporation (NASDAQ: IDTC), a leading provider of low-cost international telecommunications, announced today that it will offer Net2Phone Direct, IDT’s phone-to-phone Internet telephony service, to consumers and small businesses at a drastically reduced rate of $0.05 per minute from New York City and Chicago to any telephone in the U.S. "Due to increased demand from our customers in New York and Chicago, we’re reducing the rate to give them the greatest cost savings," said IDT’s President Jim Courter. "We’ve had tremendous success with Net2Phone Direct thus far, and look forward to expanding our network and offering this service both nationwide and worldwide." Net2Phone Direct is currently available to consumers and small businesses for telephone calling at a domestic rate of $0.08 per minute from local numbers in over 50 U.S. cities. The reduced rate from New York and Chicago will be available, through a controlled introduction, at $0.05 per minute. This rate will apply 24 hours per day, seven days per week, with no restrictions. The new rates will take effect on February 2. To demonstrate Net2Phone Direct’s superior quality, the Company is encouraging everyone in the U.S. to place a free Net2Phone Direct domestic call to test out the quality. To place a free call over Net2Phone Direct or to sign up for service, please call 800-CALL-IDT. IDT Corporation is a diversified telecommunications company with seven years of innovation within the international telecommunications arena offering a variety of wholesale and retail services. The Company routes and resells international long distance services to individuals and businesses in over 225 countries and to telecommunications carriers in the US and overseas. The Company currently has over 400,000 retail customers using an array of services including international long distance, Internet, and Internet telephony services. The Company is a leader in Internet telephony, routing telephone calls over the Internet at substantially reduced rates.