Net2Phone is a leading provider of voice-enhanced Internet communications
services to individuals and businesses worldwide. Net2Phone enables people to place low-cost high quality calls from their computer, telephone, or fax machine to any telephone or fax machine in the world. By routing calls via the Internet, Net2Phone enables users to save up to 95% off international phone rates. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the web and other IP networks.

A registration statement relating to Net2Phone 's common stock has been
filed with the Securities and Exchange Commission but has not yet become
effective. Shares of common stock of Net2Phone may not be sold nor may
offers to buy be accepted prior to the time the registration statement
becomes effective. The offering will be made only by means of a prospectus.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the common stock in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.

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, and Internet access.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, made as of the date of this press release, are based upon current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. IDT assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth herein and the other information set forth from time to time in IDT's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including the Company's Annual Report on Form 10-K, as amended, for the year ended July 31, 1998, and its Quarterly Reports on Form 10-Q for the three months ended October 31, 1998 and January 31, 1999.