IDT Signs Agreement with Mid-Eastern PTT
The General Telecommunications Organization of Oman (GTO) to Resell IDT's PC-to-phone and phone-to-phone IP Telephony Services

Hackensack, NJ and Muscat, Oman - January 20, 1999 -- IDT's (NASDAQ: IDTC) Net2Phone today announced that it has entered into an agreement with the GTO, the sole provider of telecommunications services in the Sultanate of Oman, to provide IDT's PC-to-phone and phone-to-phone services to its customers in Oman.

Muscat-based GTO has agreed to purchase Net2Phone Direct gateways in Oman and market Net2Phone's IP telephony services to their long distance
customers. Services offered will include direct dial long distance,
PC-to-phone service, retail pre-paid calling cards as well as corporate
voice and fax over IP services. All phone-to-phone calls will be routed over
dedicated IP lines using Net2Phone's gateways and gatekeepers, ensuring toll quality.

Under the agreement, the GTO will be offering Net2Phone, the first
PC-to-phone service, to its Internet customers in Arabic, which represents
the first Arabic-language Internet telephony service.

"The Middle East represents a tremendous market opportunity for IDT because most countries have not yet faced deregulation in the telecom marketplace," said Jim Courter, President of IDT Corporation. "We're very pleased to be working directly with the GTO, who has proven itself to be a most progressive administration in the region."

"Offering Net2Phone's services to our customers demonstrates our ability to
provide our customers with low-cost telecommunications alternatives
utilizing the utmost in high technology," said GTO Director General Abdullah Al-Rawahy. "We chose to work with Net2Phone based on their experience in the development of full system carrier-grade IP telephony solutions and advanced services. We look forward to developing many cost-effective solutions for our customers with IDT."

About Net2Phone Direct
Net2Phone Direct makes IP Telephony technology transparent to corporate and consumer customers, while still passing on cost savings of up to 80% for international telephone calls and fax transmissions. The service will be
available from any dial-tone telephone, fax machine or PBX. Quality tests
have shown Net2Phone Direct service to be consistently superior to GSM
calls. In fact, most customers cannot distinguish a quality difference
between calls over their traditional carrier and Net2Phone Direct.

About Net2Phone
Net2Phone enables Internet users to place calls to any telephone in the
world via the Internet, transforming multimedia computers into full service
communications tools. Recipients of the call need not be online as calls are
routed directly to traditional telephones. Because calls are placed through
the Internet, phone rates are not based on the country of origin.

About IDT
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.

About GTO
The General Telecommunications Organization (GTO) of Oman has developed a communications infrastructure on par with those in the most modern countries in the world. The GTO offers mobile telephone service, payphones, pagers, voice mail, bureau fax, telegraph service, telex, leased circuits, CPS, maritime service, and VSAT services throughout Oman.