New Deal Will Allow Phone-to-Phone and Real-Time Fax Communications at Drastically Reduced Rates

Hackensack, NJ.--- Feb. 22, 1999 -- IDT's Net2Phone (Nasdaq: IDTC - news) today announced that it will begin offering Internet telephony services in Brazil and Russia.

Through an agreement with multinational telemarketing company TVB
International, Net2Phone gateways will be installed in two developing
markets to offer direct dialing, calling cards, and real-time fax using
Internet telephony from a person's home or business without the need for a
computer. Net2Phone's products and services enable direct low cost
phone-to-phone and fax-to-fax communications over the Internet.

All calls will be routed over dedicated IP lines using Net2Phone's gateways,
and will enable users to place telephone calls and send faxes to any
telephone or fax machine in the world. TVB Communications has set an
aggressive target for installing additional Net2Phone gateways in a new
country every few months.

"For the last three years, TVB has been searching for the right business to
strengthen our foray into Internet telephony," said David Home, president
and managing director of TVB Communications International. "After fully
exploring our options, we decided that Net2Phone is the perfect company to
supply all our equipment and services in the IP telephony arena."

This agreement enables Net2Phone to expand its phone-to-phone and fax-to-fax IP service to more countries around the world. By creating a worldwide IP telephony network, Net2Phone is able to capitalize on deregulating markets and begin offering more low-cost and value-added services in countries that become open to competition.

"TVB's international status makes it a perfect choice for us to expand our
product offerings to a more global market," said David Greenblatt, chief
operating officer of Net2Phone. "We are aggressively working with TVB to
market IP Telephony to both business clients and the general population in
developing countries."

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, Click2Talk, and easysurf.com. For more information about IDT's Internet telephony services, please visit www.net2phone.com.

TVB Communications International was established in 1991 to operate
independent telemarketing for five star hotel chains. Over the last eight
years, TVB's operation has expanded to represent 50 International hotels in
more than 15 countries. TVB also owns a 20% share of Bulgaria's largest ISP server company BlsOnline that is in the process of linking nine of
Bulgaria's largest cities to the Internet by satellite. TVB currently has 22
offices and more than 400 employees in offices in Brazil, Morocco, Egypt,
Saudi Arabia, Pakistan, India, Zimbabwe, Turkey, Russia, Yemen, Oman,
Bulgaria, Dubai and Australia. New offices are planned to open in South
Africa, Uganda, Croatia and the Republic of Georgia.

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.