Hackensack, NJ - May 11, 1999 - IDT Corporation (NASDAQ: IDTC) announced today that it has consummated the tender offer for its 8.75% Senior Notes due 2006 (the "Notes"), having repurchased $99,620,000 of $100,000,000 principal amount of the Notes originally issued in February 1998.

With 99% participation by the Note holders in the Tender Offer, the supplemental indenture relating to the remaining Notes outstanding has become operative, enabling the Company to effect one or more possible financing transactions involving Net2Phone.

As previously reported, Net2Phone has executed a term sheet with more than one significant strategic investor relating to an investment in Net2Phone's equity securities, and Net2Phone is negotiating with other significant investors.

IDT secured a $150 million credit facility to repurchase the tendered Notes, and may use the balance of funds to fund capital expenditures and for general working capital purposes.

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.