Reiterates strength of business and market position

Hackensack, NJ - April 6, 1998 - Though it is not the Company’s custom to comment on its stock performance, IDT Corporation (NASDAQ: IDTC) today issued the following statement: The Company believes the recent drop in IDT’s stock price is due to two factors: 1. SmarTalk, (NASDAQ: SMTK) a domestic-focused debit card company, warned of a first-quarter loss of $0.05 per share on significantly lower revenues than anticipated, below Wall Street expectations of a $0.05 profit. As a result, the Company experienced a 25% decrease in their stock price last Thursday. As a leading debit card distributor, IDT’s stock price fell in sympathy. 2. There is perception that the rumored proposed FCC policy calling for IP telephony regulation will have a negative impact on IDT’s IP telephony business. IDT’s response: 1. IDT continues to experience robust growth. In particular, revenues from IDT’s debit card business, which realized revenues of $18 million in the previous quarter, is currently exceeding the Company’s internal quarterly projections. Whereas SmarTalk is a distribution and marketing company focused primarily on debit cards for domestic use, IDT’s pre-paid cards are marketed to high-volume ethnic markets for international usage, and utilize IDT’s domestic and international networks and operating agreements with telcos worldwide. 2. A thorough review of IDT’s Net2Phone business has shown that IDT pays termination fees to local licensed carriers who are ALREADY paying charges into the universal service fund. Thus, the proposed regulation should have NO impact on IDT’s bottom line. 3. Furthermore, over 90% of IDT’s IP telephony business, which last quarter, accounted for less than 4% of overall revenues, is computer-originated from its Net2Phone (PC-to-phone) product. Additionally, approximately 80% of this business originates outside of the United States, and thus is not subject to FCC regulation. In spite of these points, from a public policy point of view, IDT opposes government intervention, regulation, or taxation of the Internet. As the leader of the Internet telephony industry, IDT intends to continue to vigorously oppose such measures in all public forums. IDT Corp. (NASDAQ:IDTC) 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 including Net2Phone Direct and Net2Fax.