Hackensack, NJ and ANGRES, FRANCE– July 14, 1998 – IDT’s Net2Phone (NASDAQ: IDTC) and Packard Bell NEC Europe today announced an agreement to bundle Net2Phone, IDT’s PC-to-phone software, on Packard Bell home PCs throughout Europe. Under the agreement, Packard Bell NEC will place Net2Phone as a shortcut on home desktop computers in Austria, Belgium, Switzerland, United Kingdom, Spain, Germany, Netherlands, Ireland, Italy, Lichtenstein, Luxembourg, and France beginning September 1, 1998. Net2Phone will be available in each European country with an appropriately translated version. For example, those purchasing Packard Bell computers in France will receive the French version of Net2Phone on their desktops. Net2Phone is available in seven languages. "This is the first step by a major OEM to incorporate Voice over IP into its desktop application, which shows that Internet telephony is now a value-added service to their customers," said Jeff Pulver, president of pulver.com. "Offering in-language Internet telephony services throughout Europe is a key way to increase distribution and usage in markets which will truly benefit from low-cost phone service." With Net2Phone, calls are routed over the Internet from a computer to any phone in the world. Because the signal is carried over the Internet until it reaches IDT's phone switches, rates are not dependent upon the country of origin. As a result, users can save up to 95% off their international phone bill, and can also make US toll-free calls from anywhere in the world at no cost. Having already routed more than 35 million minutes of Internet telephony calls, IDT's myriad of Internet telephony services have become a proven communications option for individuals and businesses worldwide. "We firmly believe that the Internet is THE next revolution, changing the way consumers exchange and access information. Since its creation in 1985, the Packard Bell brand has pioneered the Home PC market. We intend in the same way to pioneer the use of the Internet for consumers with a complete Internet offer including Net2Phone," says Pascal Cagni, Vice-President Consumer Division, Packard Bell NEC Europe, "With this solution, we are offering our customers the latest in Internet telephony to communicate easily and at a low-cost." "Bundling our service on Packard Bell NEC’s computers throughout Europe is a perfect way to target potential customers," said IDT’s CEO Howard Jonas. "Our agreements with IBM, Compaq, and Yahoo! have boosted the visibility of our Internet telephony products, and we are sure that this agreement with Packard Bell NEC Europe will further establish us as the leader in IP Telephony. We look forward to working with Packard Bell NEC on future projects." 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. Packard Bell NEC Europe was created in 1996 following the merger of the PC operations of Packard Bell, Zenith Data Systems and NEC. The company designs, manufactures and markets a broad range of desktops, notebooks, portable computers, network servers and Net PCs. The group's headquarters and the Service and Support centre are based in Wijchen, Holland. The marketing, production, distribution and R&D divisions are based in Angers, France. Founded in 1994 by Jeff Pulver, pulver.com, Inc. (www.pulver.com) is an Internet based consulting firm. pulver.com publishes Internet technology related research such as The Pulver Report. The Company also produces trades shows and conferences including Voice on the Net (VON). pulver.com also provides consulting services to the telecommunications, financial services and Radio/TV industry. pulver.com is based in Melville, NY USA.