Through partnerships with Daewoo and Naray, new Internet long distance telephone service is trialed in Korea

HACKENSACK, NJ -- February 4, 1998 -- IDT Corporation (NASDAQ: IDTC), in conjunction with Daewoo Corporation and Naray Mobile Telecom, today released Net2Phone Direct, IDTís phone-to-phone-via-the-Internet service, in Korea. With Net2Phone Direct, calls from Korea to any telephone in the world will cost significantly less than traditional telephony.

Net2Phone Direct is the first publicly available service in Korea offering phone-to-phone Internet long distance service. Daewoo and Naray are offering $20,000 of free trial calling to businesses and residents throughout Korea, and intend to release Net2Phone Direct commercially next month. "Offering a service such as Net2Phone Direct in Korea is by far the greatest telecommunications event to come to Korea since the invention of the telephone," said IDTís President Jim Courter. "With Internet telephony slated to become a $2 billion industry by 2001, IDT is well positioned to service the high volume international telephone markets without sacrificing quality, service or price."

"I am confident that the users will be impressed with the quality and glad we have chosen IDT's Net2Phone Direct," said Yong Won Kim, Executive Vice President of Naray Mobile Telecom. "Once we launch the commercial service, Korean consumers will benefit from our low-cost service without noticing any difference compared to normal phone calls."

Calls placed over Net2Phone Direct are converted from a standard telephone to the Internetís digital signal processing and transmitted via the Internet seamlessly to any telephone in the world. Due to the fact that the call only travels a short distance on the circuit switch network, the total cost of the call is much lower than traditional telephone costs. The Company has already released Net2Phone Direct in over 50 cities in the U.S. and intends to launch Net2Phone Direct in additional international locations in the coming months.

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.