Hackensack, NJ - May 7, 1999 - Now there is no excuse not to call Mom - or anyone else -- this Mother's Day. On Sunday, May 9th, Net2Phone Direct, IDT's (NASDAQ: IDTC) phone-to-phone Internet telephony service, will offer free domestic phone calls all day.

Users will be able to take advantage of the free phone calls on Mother's Day immediately upon registering, which can be done through the Net2Phone Direct web site at www.net2phonedirect.com. Users will be required to register for Net2Phone Direct using a credit card on Net2Phone's secure site, and will be able print out a virtual phone card to use until the official card arrives in the mail. Existing customers must call 800-989-4382 in order to activate the promotion.

The Mother's Day event will help kick off Net2Phone's 7.9 cents a minute Net2Phone Direct "One Simple Rate" calling card rate, the lowest pre-paid calling card with nationwide toll-free access. Users will be able to call ANYWHERE in the United States using a toll free number without restrictions. Previously, users had to dial local access numbers in order to benefit from Net2Phone Direct's low rates, but this new rate allows toll free access from anywhere in the country. The new rates will be in effect beginning Monday, May 10th.

"This new promotion allows us to encourage the use of IP telephony, particularly Net2Phone Direct, which is easy to use, has high quality and relatively inexpensive," said David Greenblatt, Chief Operating Officer of Net2Phone. "We are even more excited about introducing this new 7.9 cent calling card throughout the U.S. - the least expensive calling card with toll-free access anywhere."

How Net2Phone Direct Works: Net2Phone Direct users call a toll-free or local number, which connects the call to a local gateway, which digitizes the caller's voice and puts it onto Net2Phone's private IP backbone. The system then prompts the user to enter their account number and the telephone number they wish to reach. The call is carried over the Internet to another gateway located close to the recipient's area, which switches the call onto the local telephone network, and completes the call -- all within seconds. Because the call only travels a short distance on the public switched telephone network, the total cost of the call is minimal.

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.

Sarah Hofstetter
Vice President, Corporate Communications
Net2Phone
201-928-2882