World's Leading Computer Company Teams With World's Largest IP Telephony Company

NEW YORK--(BUSINESS WIRE)--June 16, 1998--IDT Corp. (NASDAQ:IDTC - news) and IBM Corp. (NYSE:IBM -news) announced today that IDT's industry-leading Net2Phone service is now available to IBM Internet Connection Services customers.

The two companies said they had signed a contract calling for IBM to promote Net2Phone on the IBM Internet Connection Services Web site (www.ibm.net) to its Internet users worldwide, except where restricted. IBM also agreed to include Net2Phone software into its Internet access dialer kit and to place a button on its Web site referring customers to IDT's download site.

Rated Product of the Week by PC Magazine, Editor's Choice by Computer Telephony Integration Magazine, and Editor's Choice by Teleconnect Magazine, Net2Phone has routed millions of minutes monthly, and was recently named the leading Internet telephony service provider by Frost and Sullivan. The Net2Phone software is free and is downloadable off the Internet at www.net2phone.com.

``New technology companies have been pairing off with the giant network equipment providers. We have had many options and offers, but clearly no one compares with IBM,'' said IDT's CEO, Howard Jonas. ``We look forward to a long-lasting relationship with the biggest and most important company in the computer services field.''

``We are responding to a growing number of requests from our enterprise customers who want voice over IP capability,'' said Gary Weis, general manager, managed data network services and network technology, IBM Global Services. ``By working with IDT, and referring our customers to their Web site, we make it easier for our customers to subscribe to IDT's PC-to-telephone service, Net2Phone.''

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 including Net2Phone Direct and Net2Fax.

IBM Global Services, with headquarters in Somers, N.Y., provides information technology solutions that enable enterprises to lead in their marketplaces. With 1997 revenue of approximately $26 billion and 110,000 professionals in 164 countries, IBM Global Services is the world's largest and most versatile services provider. Its capabilities span business transformation consulting, strategic outsourcing, systems integration, product support services, education and training, and managed network services over the IBM Global Network, one of the world's largest data networks. For more information, please see www.ibm.com/services or call 800/455-5056.

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.