New telecom solution offers full-service communications services incorporating dedicated Internet with IP-based phone calls 3.5 cent/minute domestic rate and 10 cent per minute international rates to Latin America, Asia, Europe, and Middle East

HACKENSACK, NJ - June 29, 1998 - Leading the charge in the convergence of voice and data networks, IDT Corporation (NASDAQ: IDTC) today unveiled a new plan to market a corporate solution enabling businesses to send both voice and data traffic over IDTís robust IP network, resulting in drastically reduced costs for the enterprise customer. The new corporate package, entitled "Project David," will be available to companies in 10 major metro areas beginning July 1, 1998. Designed to break down archaic and outdated "Goliath"-like networks and pricing, Project David brings change and innovation to the forefront. While the worldís attention is diverted by mega-mergers which will take years to implement, Project David is available today, and is utilizing advanced technology to incorporate voice and data onto one robust IP network, which the Company believes will result in reduced prices and more flexibility in the telecom marketplace. "IDT has always believed in providing its customers with low-cost, high-quality alternatives for their telecom services. Weíve been revered as telecom trailblazers, and love the opportunity to present technological breakthroughs and network improvements," said IDT's CEO Howard Jonas, who has been called both an "Edisonian visionary" by Forbes Magazine and a "corporate rebel," by Wired Magazine. 3.5 cent domestic/ 10 cents international Project David, which will include 3.5 cent-per-minute voice-over-IP phone calling domestically and an average 60% discount on international calls, is designed to enable MIS managers to fully integrate all communications services under one network, and enable flexibility and integration of voice and data networks. Rates to Europe, Asia, Latin America, and the Middle East/Africa are as low as 10 cents per minute to certain destinations in each continent. By incorporating voice over IP directly into their PBXs, IDT dedicated users can dial "9" to get out on a traditional phone line, and "7" to get out on an Internet telephony line, enabling toll-quality transmission over dedicated lines. Half-Price High-Speed Internet Access IDT corporate dedicated users will get up to twice the speed of current national dedicated ISPs at half the price of current national dedicated providers. For example, UUNet charges customers $2,245 per month for a full protected T-1 on a two-year contract, while IDT charges only $1,050 for the same service. By connecting corporate users to IDTís DS3 backbone via dedicated lines, the high-speed connectivity will allow calls to be carried at full toll-quality. "Bit" Pricing vs. Minute Pricing After evaluating the cost benefit of charging calls by the bit rather than by the minute, IDT has concluded that by charging IDTís new low rates, it will cost end users significantly less to buy by the minute than to pay by the bit. While some companies plan to introduce "bit" pricing later in the year, IDT is bringing this low cost service to the corporate customer today. "Many companies can offer dedicated Internet service or phone service, and some can even offer voice over IP service, but NO ONE can provide the full-service solutions that IDT can today," said Jonas. "By fully integrating our telecom, Internet, and Internet telephony services, we will revolutionize the industry with phenomenal speed, exceptional quality, and unbelievable prices." Pure convergence; Full Integration Through IDTís new corporate plan, companies will be able to route both data and voice efficiently over a single dedicated IP line, enabling reliability, speed, scaleability, and security. Businesses will be able to make phone calls, send faxes, and run multiple applications on the Internet at fast speeds through a single connection ó and at tremendously low rates. Web sites will load instantly, phone calls will go through clearly, and all services can be maintained on IDTís managed network. "MIS managers are going to love this because you can put everything onto one flexible network," said Hal Brecher, IDTís Executive VP of Operations. "Historically, reliability and price have been the two primary factors affecting the decision making process when it comes to both telecom and Internet, and now we can provide both dependably through this innovative program. By offering a 40-60% discount on dedicated service and a 50-70% discount on phone service, this clearly positions us as a full-service communications company, and we expect a strong response to this new program." IDT: Revolutionary Telecom Pioneers This is not the first innovative program brought to the communications arena by IDT. IDT invented international callback, was the first to bridge the Internet with the traditional telephone network, introduced the first flat-free Internet pricing, and was the first to roll out a nationwide Internet-based long distance service. The 10 metro areas targeted by the program will be New York, Boston, Miami, Washington, DC, Chicago, Philadelphia, San Jose, Los Angeles, Houston, and Atlanta. More cities will be rolled out in the coming months. About IDT 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 and Net2Fax. 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.