Leading Internet telephony provider deploys low-cost calling technology using traditional telephones; encourages users to test the quality with a free call

Hackensack, NJ -- December 8, 1997 -- IDT Corporation (NASDAQ: IDTC) today launched Net2Phone Direct in over 50 U.S. cities at Fall Internet World today. Net2Phone Direct is IDT's new service enabling users to place high-quality calls via the Internet using traditional telephones. With Net2Phone Direct, domestic calls from any of the 50 cities to anywhere in the U.S. cost 8 cents per minute 24 hours a day, 7 days a week. A country-by-country rollout is expected to begin in January.

To demonstrate Net2Phone Directís superior quality, the Company is encouraging everyone in the U.S. to place a free Net2Phone Direct domestic call to test out the quality. To place a free call over Net2Phone Direct, please call 800-CALL-IDT. Additionally, anyone attending Fall Internet World will be able to place free calls from Net2Phoneís booth (2676 at the Jacob Javits Center).

"The unveiling of Net2Phone Direct in these cities is a great success both for U.S consumers and IDT as a whole," said IDT's President Jim Courter. "Now U.S. consumers can reap the benefits of low-cost Internet telephony without the need for a computer. Weíve become one of the leading global marketers in both the telecom and Internet industries, and now with Net2Phone Direct, we can effectively utilize all of our strengths to create the most cost-effective method of voice communications."

Unlike other Internet telephony products, Net2Phone Direct provides unrestricted calling to any telephone in the world and has True Phone Quality (TPQ). The serviceís network switching infrastructure is based on IDT's proprietary Net2Phone model, which enables users to place calls from their PCs to any telephone in the world.

Net2Phone Direct users call a local or toll-free number, which connects the call to an outbound switch server. This server converts the call from the telephoneís circuit switch network to the Internetís packet switch network. The system then prompts the user to enter their account number and the telephone number they wish to reach. The call is carried over the Internet to an inbound switch server located in Hackensack, NJ. That server, in turn, switches the call onto the local telephone network, and completes the call -- all within fractions of a second. Because the call only travels a short distance on the circuit switch network, the total cost of the call is minimal.

The current pricing structure is as follows: Calls from local numbers to anywhere in the U.S. cost 8 cents per minute, and for an additional 5 cents per minute, callers can access Net2Phone Direct via an 800-number, likening Net2Phone Direct to a pre-paid calling card. International rates are equally competitive, with per-minute rates to the U.K. at 18 cents, Australia at 20 cents, Germany at 26 cents, and Japan at 29 cents. To sign on for Net2Phone Direct, please call 800-CALL-IDT.

IDT Corporation is a telecommunications company with seven years of innovation within the international telecommunications arena offering a variety of wholesale and retail services. The Company routes and resells international long distance services in over 225 countries. The Company currently has over 400,000 retail customers using an array of services including international long distance, Internet, and Internet telephony services. The Company provides PC-to-phone service throughout the world, and currently offers phone-to-phone Internet telephony services in the U.S. Users of both services can call any telephone around the world via the Internet at rates up to 95% less than local phone companies.

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.