Hackensack, NJ. - March 2, 1998 - IDT Corporation (NASDAQ: IDTC) today released its new $0.05 per minute rate for Net2Phone Direct, IDT's phone-to-phone Internet telephony service, on domestic calls from 50 cities nationwide to any telephone in the U.S. This new rate will be in effect 24 hours a day to IDT long distance customers. International rates have also been reduced drastically, beginning at 9 cents per minute on calls to London.

"We're very excited about providing our customers with extremely reduced rates on Internet-based domestic and international rates," said IDT's President Jim Courter. "Cross selling our services demonstrates our ability to use our unique positioning in the telecom market to offer the least expensive way for consumers to make phone calls - irrespective of time, day, or location."

To demonstrate Net2Phone Direct's superior quality, the Company is encouraging everyone in the U.S. to place a free one-minute Net2Phone Direct domestic call. To place a free call over Net2Phone Direct, please call 800-CALL-IDT.

Calls placed over Net2Phone Direct are switched from the public switched telephone network onto the Internet via IDT's extensive DS3 backbone, thereby ensuring optimum quality and low costs. Net2Phone Direct users pre-pay for service in increments of $25.00, and can sign up for service by calling 800-CALL-IDT.

Those users who are not IDT long distance customers can place domestic calls for 8 cents per minute from local access numbers, available in 50 cities. Those outside the local calling area can access Net2Phone Direct via an 800 number, available anywhere in the U.S. at a rate of 13 cents per minute, making it the least expensive pre-paid calling card in the U.S. International rates are equally competitive, with per-minute rates to London at 9 cents, Sydney at 10 cents, Stockholm at 10 cents, and Korea at 30 cents.

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, Internet access and, through its Net2Phone product offerings, Internet telephony services.

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.