IDT's PC-to-phone software to be bundled with Andrea's computer headsets for distribution in U.S., Latin America, and Europe

HACKENSACK, NJ and LONG ISLAND CITY, NY -- February 9, 1998 -- IDT Corporation (NASDAQ: IDTC) and Andrea Electronics Corporation (AMEX: AND) announced today that IDTís Net2Phone will be bundled with Andreaís Anti-Noise computer headsets and handsets. Net2Phone software will be included in Andrea's retail product packages, which will be distributed throughout the U.S., Latin America, and Europe.

With Net2Phone, calls are initiated on a computer and routed over the Internet to any telephone in the world at drastically reduced rates. Having already routed more than 13 million minutes of Internet telephony calls, averaging more than seven minutes per international call, IDTís suite of Internet telephony services has become a proven communications option for individuals and businesses worldwide. Because the signal is carried over the Internet until it reaches IDTís U.S.-based phone switches, rates are not dependent upon the country of origin. As a result, users can pay as little as 10 cents a minute for calls to the United States from anywhere in the world.

"Through this agreement, IDT will be able to rapidly increase its distribution channels for Net2Phone in key markets, and bundling with Andrea provides us with an exceptional means of distribution ," said IDTís President Jim Courter. "Andreaís handsets and headsets have proven to be remarkable products and we are happy to be marketing IDTís high-quality services with Andreaís products. Net2Phone users will find it incredibly advantageous to replace their microphone and speakers with a headset which will provide them with a greater level of privacy as well as improved sound quality."

Andrea Anti-Noise products utilize Active Noise Cancellation microphone technology, which substantially improves sound quality, include voice intelligibility associated with network communications, by effectively neutralizing unwanted background noise at the source ñ the speakerís microphone. Andrea Anti-Noise computer headsets and handsets are distributed through many of the world's leading electronics retailers, office and computer supply superstores and distributors.

"We are very pleased to be bundling IDT Corporationís high quality Net2Phone software with our retail products in the U.S., Latin America, and Europe," said John N. Andrea, co-president of Andrea Electronics Corporation. "We believe there is tremendous room for growth in network communications in the U.S., Latin America, and Europe, and that IDTís and Andrea Electronicsí products, together, answer a growing need for clear, cost-effective Internet communications in these regions. Our retail packages offering Net2Phone are well positioned to gain widespread acceptance as extremely attractive, low-cost communications alternatives in evolving markets."

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.

Andrea Electronics Corporation is a developer and manufacturer of audio communications equipment for personal computers, telecommunications, commercial and military markets. Andrea Electronics is based in Long Island City, New York.