Under the terms of the deal, Net2Phone will be bundled onto CD-ROMs created by MEE S.p.A. and readily available to more than 12 million customers throughout Europe. The CD-ROMs will be distributed through MEE S.p.A's existing partnerships with European computer and trade magazines, Internet service providers and hardware manufacturers.

"Net2Phone's bundling agreements enable easy access to our products. We look forward to working with MEE S.p.A., an experienced bundler with broad distribution channels throughout Europe, to get our product out to more Internet users around the world," said David Greenblatt, Chief Operating Officer of Net2Phone.

"By working with Net2Phone, we make it easy for our customers to save money using Net2Phone, the premier PC-to-telephone service over the Internet," said Riccardo Levi, President of MEE. "MEE S.p.A. is very excited about the opportunity to provide the latest Net2Phone software to our international market."

Net2Phone enables voice data to be carried over the Internet's packet switched network until it reaches traditional telephone infrastructure. There the signal is converted to the circuit switched network used by telephones, enabling the signal to be received by any phone worldwide.

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.

MEE is a Floppy Disk and CD-ROM replicator that provides a turnkey software service to software developers (such as Symantec, Lotus, Trend Micro, Micrografx), hardware manufacturer (IBM, Digital, Hewlett Packard, Olidata) and Internet Service Providers (Telecom Italia Net, Italia On Line). With three production plants in Italy, France and Israel, MEE offers high-quality and cost effective solutions for printing, packaging, warehousing and fulfillment operations. In the last two years the company established a new division to provide contents through international OEM agreements with major software companies. For more information about MEE's software services, please visit www.mee.it.

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.

Sarah Hofstetter
Vice President, Corporate Communications
IDT Corporation
201-928-2882