Leading multimedia vendor to include award-winning Internet telephony software with sound cards and peripherals worldwide

HACKENSACK, NJ and MILPITAS, CA -- August 10, 1998 -- IDT Corporation (NASDAQ: IDTC) today announced that it has entered into an agreement with Creative Technology Ltd. (NASDAQ: CREAF) whereby Creative intends to bundle IDT's Net2Phone software in their retail products worldwide.

Under the terms of the agreement, IDT will create a specially designed
version of Net2Phone, its award-winning PC-to-phone software, for Creative's
multimedia products (including Sound Blaster®, the world's most widely
distributed audio card with more than 50 million users) and other
peripherals. The companies have also agreed to consider further
opportunities together.

Nearly 60 percent of today's PC audio systems are built on Creative's Sound Blaster® technology, making Creative responsible for the majority of the PC-generated sound worldwide. As the industry standard in PC audio, Sound Blaster compatibility is required for most PC sound systems on the market. Creative has partnered with some of the industry's top technology companies and developers worldwide. By providing customers with the complete solutions that truly personalize PCs at a price they can afford, Creative has established a formula for success in the mass marketplace.

"We chose to ship Net2Phone with Creative's products because it is the most effective and affordable voice communications solution available to users worldwide - not to mention its multi-lingual capabilities," said Hock Leow, vice president of Creative's Multimedia Division. "Providing value-added services to our customers is of tremendous importance to Creative, and Net2Phone represents a new medium by which our users can take advantage of one of the fastest growing multimedia applications on the Internet."

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 routed more than 40 million minutes of Internet telephony
calls lasting 50% longer than traditional telephone calls, IDT's myriad of
Internet telephony services have become a proven communications option for individuals and businesses worldwide.

"We are very excited to join forces with Creative Labs, who will market
Net2Phone to a remarkably defined audience," said Yonah Lloyd, Director of Click2Talk Net2Phone's e-commerce solution package. "Creative's global
distribution channels, combined with its ability to turn ordinary computers
into multimedia PCs, will have a significant positive impact on the
continued standardization of Net2Phone as the world's leading PC-to-Phone
service."

For more information about bundling or reseller opportunities for Net2Phone,
please visit www.net2phone.com or e-mail bundle@net2phone.com.

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.

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through both the OEM and retail channels under a variety of trademarks, including the "Blaster" family name. Sound Blaster® has become the multimedia industry's de facto audio standard. Sound Blaster is an audio platform consisting of a sound card or chipset, software drivers and bundled software applications that enable PCs to produce high quality audio. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

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.