SECOND QUARTER FISCAL 2011 SUMMARY

$ in millions, except EPS	2Q11	1Q11	2Q10	YoY Change (%/$)
Revenues	$401.5	$357.4	$362.7	+10.7%
Gross profit	$72.2	$74.2	$74.2	(2.6)%
Gross margin percentage	18.0%	20.8%	20.5%	(250) basis points
Total SG&A expense (including R&D expense)	$62.4	$60.0	$56.5	+10.5%
Adjusted EBITDA	$9.8	$14.2	$17.7	(44.6)%
Income from operations	$8.1	$11.0	$7.6	+6.2%.
Net income attributable to IDT	$3.9	$15.6	$3.7	+6.1%
Diluted EPS attributable to IDT	$0.18	$0.70	$0.17	+$0.01
Net cash provided by operating activities	$23.9	$5.6	$13.0	+83.0%

 

NOTE: Adjusted EBITDA for all periods presented is a non-GAAP measure representing income (loss) from operations exclusive of depreciation and amortization, severance and other charges, and other operating gains, net.  It is one of several key metrics used by management to evaluate the operating performance of the Company and its individual business units.  See reconciliations provided below.

MANAGEMENT COMMENTS

Howard Jonas, IDT's Chairman and CEO, said, “IDT Telecom had an outstanding quarter with strong growth in minutes, revenue, gross profit and Adjusted EBITDA generated by our core TPS segment.   At IDT Energy, we continued to expand into new territories despite an increase in electric prices, which pressured margins downward this quarter. In the longer term, these new markets are a great growth opportunity and we have the flexibility to protect against future commodity cost increases by hedging some of our naturally short position.”

IDT's Chief Financial Officer, Bill Pereira said, “We grew net income by 6% year-over-year and generated over $23 million in cash from operating activities in 2Q11.  IDT also further strengthened its balance sheet and enhanced its liquidity, even while paying $10 million in dividends.  Cash, cash equivalents and certificates of deposit – increased to $262.8 million from $242.7 million at the close of the prior quarter.  We also continued to execute on several important initiatives to increase shareholder value including the spin-off to shareholders of both our VoIP related intellectual property and our Genie Energy division.  We expect to complete both spin-offs during calendar 2011.”

BALANCE SHEET AND CASH FLOW HIGHLIGHTS

At January 31, 2011, IDT reported $262.8 million of cash, cash equivalents and certificates of deposit, including $6.9 million of restricted cash and cash equivalents.  Current assets totaled $435.7 million, and current liabilities totaled $313.9 million.  Non-current liabilities totaled $46.5 million. 

Net cash provided by operating activities for the six months ending January 31, 2011 was $29.5 million, and capital expenditures totaled $6.1 million.  Net cash provided by operating activities during the comparable period a year ago was $15.3 million, and capital expenditures totaled $4.9 million.

OPERATING RESULTS BY SEGMENT

IDT TELECOM

IDT Telecom includes two reporting segments: Telecom Platform Services (TPS) and Consumer Phone Services (CPS).  TPS provides various telecommunications solutions, including prepaid and rechargeable calling cards, a range of Voice over Internet Protocol (VoIP) communications services and wholesale carrier services.  CPS provides both bundled (unlimited local and long distance) services as well as long distance-only services to consumers in the United States. 

IDT TELECOM:  Telecom Platform Services (TPS)

TPS – SECOND QUARTER FISCAL 2011 SUMMARY

$ in millions	2Q11	1Q11	2Q10	YoY Change
Revenues	$334.4	$302.5	$290.4	+15.2%
Minutes of use (in millions)	6,552	6,086	5,082	+28.9%
Gross profit	$55.1	$53.9	$51.2	+7.8%
Gross margin percentage	16.5%	17.8%	17.6%	(110) basis points
SG&A expense	$44.7	$43.6	$42.2	+5.8%
Adjusted EBITDA	$10.4	$10.2	$8.9	+16.9%
Income from operations	$9.4	$5.5	$1.0	+856.0%

 

TPS' revenues in 2Q11 were $334.4 million, a 15.2% increase compared to the second quarter of fiscal 2010, and a 10.6% increase sequentially.  Average revenue per minute declined 10.7% compared to the year ago period, but increased 2.6% sequentially.

Wholesale carrier revenues increased 23.0% YoY and 15.1% sequentially, reflecting strong growth in minutes of use as a result of more successful sales and marketing efforts, as well as lower pricing per minute YoY that generated more traffic on IDT's network. 

Revenues from TPS' retail sales channel increased both YoY and sequentially.  In the United States, BOSS Revolution, IDT's international, pay-as-you-go calling service, and international mobile top-up (IMTU) cards led the YoY and sequential growth, far offsetting declines from the discontinuation of third party provided domestic mobile top-up card sales and from the sale of traditional, disposable IDT calling cards.  

Overseas, both YoY and sequentially, calling card revenues increased somewhat in South America, while falling in Asia. Calling card revenues in Europe declined YoY and increased slightly sequentially.  Revenues generated outside the United States were adversely impacted by declines of certain foreign currencies, particularly European, against the U.S. dollar. 

TPS' minutes of use rose to 6.6 billion, a 28.9% increase compared to 2Q10, and a 7.7% increase sequentially.  Increases in minutes of use were driven by both the wholesale carrier and reseller channel, while minutes generated by TPS' retail channel rose modestly.  Within Telecom's international retail operations, minutes of use growth in Europe both YoY and sequentially was in part offset by declines in Asia and South America. Minutes of use generated by retail offerings in the U.S., including cable telephony services, increased slightly sequentially and decreased slightly YoY.

TPS' direct costs rose 16.7% YoY and 12.3% sequentially to $279.3 million.

Gross profit at TPS was $55.1 million, a 7.8% increase compared to 2Q10 and a 2.4% increase sequentially.

TPS's gross margin was 16.5%, a 110 basis point decrease YoY and a 130 basis point decrease sequentially.  Product mix drove the trend, as revenues from sales of traditional, higher margin, IDT branded prepaid calling cards have declined, while revenue from relatively lower margin IMTU cards and wholesale carrier traffic have increased.

TPS' SG&A costs were $44.7 million, representing a 5.8% increase YoY and a 2.5% increase sequentially.  Compared to the year ago quarter, increases in compensation and in third party commissions, as well as in bad debt expenses, were only partially offset by decreases in consulting fees, and in facilities and equipment maintenance costs.

TPS' Adjusted EBITDA for 2Q11 was $10.4 million, a 16.9% increase YoY and a 2.1% increase sequentially. 

TPS' depreciation and amortization expense was $4.7 million in 2Q11, a 35.5% decline from the year ago period and a 0.4% decline sequentially.  The significant YoY decline reflects lower levels of capital expenditures in recent quarters and the reaching of full depreciation of older property, plant and equipment. Going forward, management expects more modest YoY reductions in depreciation and amortization expense. 

TPS' income from operations was $9.4 million, compared to $1.0 million in 2Q10 and $5.5 million in 1Q11. In addition to the improvement in Adjusted EBITDA and the decrease in depreciation and amortization expense noted above, income from operations in 2Q11 benefitted from a net gain of $4.6 million from the termination of a contractual agreement for cable telephony services partially offset by an adverse decision in a patent infringement lawsuit.

$ in millions	2Q11	1Q11	2Q10	YoY Change
Revenues	$6.9	$7.5	$9.9	(30.4)%
Gross profit	$3.8	$4.0	$5.3	(28.0)%
Gross margin percentage	55.6%	53.5%	53.8%	+180 basis points
SG&A expense	$1.8	$1.9	$2.2	(15.6)%
Adjusted EBITDA	$2.0	$2.1	$3.2	(36.6)%
Income from operations	$2.0	$2.0	$3.1	(36.6)%

CPS has been in “harvest mode” since fiscal 2006 – maximizing revenues from current customers while maintaining SG&A and other expenses at the minimum levels essential to operate the business. During 2Q11, CPS generally performed to expectations and results were consistent with long term historical trends.

GENIE ENERGY

Genie Energy is comprised of IDT Energy and Genie Oil and Gas.  IDT Energy operates an energy services company that resells electricity and natural gas to residential and small business customers in New York State, New Jersey and Pennsylvania. Genie Oil and Gas consists mainly of (1) American Shale Oil Corporation (AMSO) which holds and manages Genie's interest in American Shale Oil, LLC (AMSO, LLC), a shale oil initiative in Colorado, and (2) Genie's interest in Israel Energy Initiatives, Ltd. (IEI), a shale oil initiative in Israel.

GENIE ENERGY:  IDT Energy

IDT ENERGY – SECOND QUARTER FISCAL 2011 SUMMARY

$ in millions	2Q11	1Q11	2Q10	YoY Change
Revenues	$57.8	$45.5	$60.7	(4.8)%
Gross profit	$11.3	$14.7	$16.3	(30.8)%
Gross margin percentage	19.6%	32.4%	26.9%	(730) basis points
SG&A expense	$5.9	$5.9	$4.5	+32.1%
Adjusted EBITDA	$5.4	$8.8	$11.9	(54.5)%
Income from operations	$5.4	$8.8	$11.8	(54.2)%

IDT Energy's revenues in 2Q11 were $57.8 million, a 4.8% decrease compared to 2Q10, primarily reflecting lower revenue per therm (THM) sold as a result of lower market rates for natural gas.  Revenues increased 27.1% sequentially primarily as the result of the seasonal increase in gas consumption which more than offset a seasonal decline in electric consumption.

As of January 31, 2011, IDT Energy served approximately 373,000 meters (211,000 electric and 162,000 natural gas) compared to 366,000 meters as of January 31, 2010 and 365,000 meters as of October 31, 2010. 

The average rates of annualized energy consumption for all IDT Energy meters served, as measured by residential customer equivalents (RCEs), are presented (as revised) in the chart below.  (An RCE represents a natural gas customer with annual consumption of 100MMBtus or an electricity customer with annual consumption of 10 MWhrs.)  

The increases in RCEs reflect a gradual shift in IDT's customer base to customers with higher electric consumption per meter as a result of targeted customer acquisition programs.  Because different customers have different rates of energy consumption, RCEs are a useful metric for evaluating the consumption profile of IDT Energy's customer base.

 

IDT Energy –Revised RCEs at End of Quarter (in thousands)
	2Q11	1Q11	4Q10	3Q10	2Q10
Electricity customers	124	122	117	103	98
Natural gas customers	91	87	88	88	87
Total	215	209	205	191	185

 

Electric revenues in 2Q11 were $29.6 million, a 1.8% YOY increase.  Electric revenues declined 23.4% sequentially reflecting seasonal reductions in consumption and a decline of 17.8% in average revenue per kWh.  Compared to the year ago quarter, kWh sold increased 2.8% partially offset by a decline of 1.0% in average revenue per kWh.  At January 31, 2011, IDT Energy served approximately 211,000 electric meters, representing 124,000 RCEs, compared to approximately 208,000 meters, representing approximately 98,000 RCEs, at January 31, 2010.

Natural gas revenues in 2Q11 were $28.2 million, a 10.8% decline YoY.  Sequentially, natural gas revenues increased 315.0% reflecting the seasonal increase in gas consumption for heating.  Average revenue per THM decreased 10.1% compared to the year ago quarter while THM sold decreased 0.7%.  At January 31, 2011, IDT Energy served approximately 162,000 gas meters, representing  91,000 RCEs, compared to approximately 158,000 meters, representing approximately 87,000 RCEs, at January 31, 2010.

IDT Energy's gross margin in 2Q11 was 19.6%, a 730 basis point decline YoY and a 1,280 basis point decline sequentially.  Gross margin for electric sales was 17.2%, a 1,420 basis point decline YoY, while the gross margin for natural gas was 22.0% in 2Q11, a 70 basis point decline YoY. 

Gross margin was pressured by several factors including an increase in the cost per kWh of electricity, which increased 19.5% YoY and 2.2% sequentially.  IDT Energy chose to absorb a significant portion of the increases in electric costs and accept lower gross margins for several reasons including increasing rate based competition in New York State, the expansion into new territories in New Jersey and Pennsylvania where some gross margin was sacrificed to facilitate customer acquisitions, and an effort to manage churn throughout the customer base.

SG&A expense in 2Q11 was $5.9 million, a 32.1% increase YoY but a 0.4% decrease sequentially. The YoY  increase reflects higher sales and marketing costs associated with the expansion into New Jersey and Pennsylvania, which we began in 3Q10.  Gross meter acquisitions in 2Q11 were approximately 47,000 compared to 28,000 in the same period a year ago.   

IDT Energy generated $5.4 million in Adjusted EBITDA in 2Q11, a decline of 54.5% YoY and 38.6% sequentially.  Income from operations was also $5.4 million, a decline of 54.2% YoY and 38.6% sequentially.

GENIE ENERGY:  Genie Oil and Gas

IDT accounts for Genie's 50% stake in AMSO, LLC using the equity method.  IDT's equity in the net loss of AMSO, LLC – $0.9 million in 2Q11 – is included in “Other (expense) income, net” in IDT's consolidated statement of operations. 

During 2Q11, AMSO, LLC continued advanced stage construction work on the surface oil and gas processing facilities.  AMSO expects to drill pilot wells this spring and conduct the pilot test during the second half of calendar 2011. The pilot test is intended to confirm the accuracy of several of the key underlying assumptions of AMSO, LLC's proposed in-situ heating and retorting process. 

Genie Oil and Gas' operating expenses consist primarily of costs incurred by IEI.  Genie Oil and Gas reported a loss from operations of $3.1 million during 2Q11, including $1.8 million in research and development (R&D) expense.  In the year ago quarter, the loss from operations was $1.1 million including $0.8 million in R&D expense.

During 2Q11, IEI continued working on the resource appraisal and characterization study phase of the project, which IEI expects to finalize during calendar 2011. To date, the results from the appraisal process confirm IEI's expectations as to the attractiveness of the oil shale resource in the license area from the standpoint of richness, thickness and hydrology. 

IEI is also continuing permitting and other preparatory work required prior to construction of a pilot plant and operation of a pilot test. If not delayed by permitting, regulatory action or pending litigation, pilot test construction could begin during the second half of calendar 2011, and pilot test operations could begin as early as calendar 2012.  

In future quarters, management anticipates continued, significant increases in operating costs for Genie Oil and Gas reflecting the costs of facility construction, drilling and operations of the AMSO and IEI pilot tests as well as further staffing for operations and new business development activities.

OTHER RECENT DEVELOPMENTS

In November 2010, Lord (Jacob) Rothschild and Rupert Murdoch separately purchased equity interests in Genie Oil and Gas equal to a cumulative 5.5% interest for an aggregate of $11.0 million, of which $10.0 million was paid in cash and a promissory note was issued for the remaining $1.0 million. In addition, in connection with these transactions, in November 2010, warrants were issued to purchase up to an aggregate of 1% of the common stock outstanding of Genie Oil and Gas at an exercise price of up to $2 million that are exercisable through November 12, 2011.

In December 2010, IDT received $14.4 million in cash from Bresnan Broadband Holdings, LLC (“BBH”), a former cable telephony customer.  BBH terminated its cable telephony agreement with IDT after BBH was acquired by Cablevision and paid IDT pursuant to the terms of their commercial agreement for telephony services.

On November 23, 2010, IDT paid a cash dividend of $0.22 per share for the first quarter of fiscal 2011 to shareholders of record at the close of business on November 15, 2010. On December 28, 2010, IDT paid a cash dividend of $0.22 per share for the second quarter of fiscal 2011 to shareholders of record at the close of business on December 16, 2010. The aggregate dividends paid were $10.0 million. IDT has stated its intention to continue paying quarterly dividends based on operating performance and available resources, at least through the consummation of the planned spin-off of Genie Energy.

On February 15, 2011, a jury in the U.S. District Court for the Eastern District of Texas awarded Alexsam, Inc. $9.1 million in damages for an alleged infringement by IDT of two patents related to the activation of phone and gift cards over a point-of-sale terminal.  IDT does not expect that the decision will have a material impact on its future business operations.

On February 28, 2011, following the successful completion of its exchange offer, IDT issued a Notice of Special Meeting of Stockholders to be held on April 4, 2011 to consider a proposal to amend its certificate of incorporation so that each remaining share of Common Stock will be converted and reclassified into one share of Class B Common Stock. If the amendment is approved and the related recapitalization is consummated, IDT will no longer have any shares of Common Stock authorized or outstanding and will only have two classes of common stock remaining – Class A Common Stock and Class B Common Stock. IDT.C will then be deregistered and only IDT Class B common stock (NYSE: IDT) will be publicly traded. 

Although IDT has no employees or physical assets in Japan, our hearts and our prayers are with all the victims of the recent tragic events there.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

Management's discussion of IDT's financial and operational results is posted in an audio file on the IDT website at https://www.idt.net/about/ir/overview.asp.  The audio file (in MP3 format) may be played directly from the website or downloaded for later playback.

An archived copy of this audio file will be available on the Investor Relations page of the IDT website, under the “Presentations” heading, for at least one year after the webcast.

Copies of this release – which includes a reconciliation of the Non-GAAP financial measures that are both used herein and referenced during management's discussion of results – are available in the Investor Relations portion of IDT's website, at https://www.idt.net/about/ir/overview.asp.

Q&A will be in a written format.  Investors and others interested in IDT are invited to e-mail questions for management to invest@idt.net.  IDT will accept questions received through the close of business on Friday, March 18, 2011. Questioners must identify themselves by name and (if applicable) firm. When management can constructively answer the question, the initial question, the questioner's name and firm, and management's response will be posted in a document available on IDT Corporation's website and in a Form 8-K filing as early as Wednesday, March 23, 2011 following the market close.

ABOUT IDT CORPORATION

IDT Corporation (www.idt.net) is a consumer services company with operations primarily in the telecommunications and energy industries.  IDT Corporation's Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our calling card business, our wholesale telecommunication businesses and our retail energy business; availability of termination capacity to particular destinations; our ability to maintain carrier agreements with foreign carriers; our ability to obtain telecommunications products or services required for our products and services; the business and regulatory evolution of and competition and unfair business practices in, the energy services business in New York State, New Jersey and Pennsylvania; financial stability of our major customers; our ability to maintain our income and improve our cash flow; impact of government regulation; effectiveness of our marketing and distribution efforts; and general economic conditions.  We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact:

IDT Corporation Investor Relations

Bill Ulrey

william.ulrey@idt.net

973-438-3838

IDT Corporation (NYSE: IDT; IDT.C) has scheduled its presentation of
financial and operational results for the second quarter of fiscal 2011,
the three months ended January 31, 2011, on Tuesday, March 15, 2011 at
5:15 PM Eastern.

Management’s pre-recorded remarks will be accessible through the
investor relations page of the IDT website (https://www.idt.net/about/ir)
in an MP3 audio file. The audio file will be available through the IDT
website for one year.

An earnings release will be filed on a Form 8-K and posted on the
investor relations page of the IDT website (https://www.idt.net/about/ir) simultaneously
with the posting of management’s remarks. As in prior quarters, the
earnings release will not be issued over a wire service.

Following the presentation, investors are invited to e-mail questions
for IDT’s management to invest@idt.net.
The Company will accept questions received through the close of business
on Friday, March 18, 2011. Questioners must identify themselves by name
and (if applicable) firm.

When management can constructively answer the question, the initial
question, the questioner’s name and firm’s name, and management’s
response, will be posted in a document available on the IDT Corporation
website’s investor relations page and on a Form 8-K filing as early as
Wednesday, March 23, 2011 following the market close.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C, respectively.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

IDT Corporation yesterday completed its previously announced exchange
offer of its outstanding Common Stock (NYSE: IDT.C) for shares of its
Class B Common Stock (NYSE: IDT).

As scheduled, the exchange offer expired at 5:00 p.m., EST, on Tuesday,
January 18, 2011. American Stock Transfer & Trust Company, the exchange
agent for the offer, has advised IDT that, based on the preliminary
results of the exchange offer, 1,916,560 shares of Common Stock were
tendered and not withdrawn (including shares guaranteed for delivery),
representing approximately 51% of the total outstanding shares of Common
Stock and 86% of the outstanding shares of Common Stock not controlled
by Howard Jonas, IDT’s Chairman and Chief Executive Officer. These
amounts are preliminary and subject to verification by the exchange
agent. The final results of the exchange offer will be announced
promptly following completion of the verification process which is
expected to occur on or around January 21, 2011. After the results have
been verified, the exchange agent will issue the shares of Class B
Common Stock in exchange for the shares of Common Stock accepted in the
exchange offer.

All shares that were validly tendered and not properly withdrawn have
been accepted for exchange pursuant to the terms of the exchange offer.

As a result of the completion of the exchange offer, based on the
preliminary results, IDT will have approximately 1,812,095 shares of
Common Stock and 17,544,374 shares of Class B Common Stock outstanding
as of the time immediately following the exchange of shares.

As disclosed in the Offer to Exchange, IDT intends to seek approval of
its stockholders to amend its certificate of incorporation so that each
remaining share of Common Stock will be converted and reclassified into
one share of Class B Common Stock. If the amendment is approved and the
related recapitalization is consummated, IDT will no longer have any
shares of Common Stock authorized or outstanding and will only have two
classes of common stock remaining – Class A Common Stock and Class B
Common Stock. Mr. Jonas has indicated that he intends to vote all shares
of IDT stock over which he exercises voting control in favor of the
amendment to the certificate of incorporation.

In addition, at the appropriate time, IDT intends to seek to delist the
Common Stock (IDT.C) from the New York Stock Exchange and de-register it
under the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

Forward-Looking Statements

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”), which may
be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K.We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C, respectively.

IDT Corporation
Investor Relations
Bill Ulrey, 973-438-3838
invest@idt.net

Site Traffic Tops 38 Million Unique Users in
December 2010 Making Zedge a Leading Global Mobile Content Discovery
Destination

Zedge, the international mobile content discovery platform, achieved
traffic of just over 38 million unique visitors in December 2010. Across
its web, mobile and Android platforms, traffic grew by 90% compared to
December 2009. This makes Zedge a leading world-wide mobile community
where users actively create and share content including wallpapers,
themes, ringtones, videos, texts and games.

“Zedge accelerated its extraordinary growth in 2010 to become one of the
most popular destinations in the mobile space. We believe that we are
now the most visited destination platform globally for mobile content,”
said Mark Rosner, CEO of Zedge.

According to mobile traffic analytics of unique visitors derived from
its Opera Mini browser, Opera Software found that Zedge was the 15th
most visited mobile site globally as of November 2010. Jon von
Tetzchner, co-founder of Opera Software, said in his State of the Mobile
Web November 2010, ” Twitter and Zedge are two sites that rose
significantly on a global basis, whereas waptrick and Friendster became
less popular as the year progressed.” The complete Opera report is
available at http://www.opera.com/smw/2010/11/.

Tom Arnoy, Co-Founder and President of Zedge, explains the growth by a
patient and steady focus on content and products that appeal to mobile
consumers around the world. “We have always focused on the mobile
consumer and on creating a great user experience, even for users with
uncommon devices. We have been waiting for the mobile web to take off,
and the growth we are seeing now is just the beginning.”

Arnoy added that the Zedge Android app, launched in late 2009 for
Android smartphones, has already been downloaded over 6 million times,
and is one of the most popular apps in Android Market. Additionally,
across Zedge’s platform, visitors now download 5 million content items
each day, and have downloaded over 3 billion pieces of content since the
Zedge website was launched in 2003. Zedge has also generated rapid
growth in specific geographies, such as Android in the U.S., and mobile
web in India. According to Google Zeitgeist 2010, “Zedge” was the tenth
fastest growing search term in India during the year. (See http://www.google.com/intl/en/press/zeitgeist2010/regions/in.html).

In December 2010, Zedge announced the beta launch of the Zedge Discovery
Network (“ZDN”), an open Android app discovery and distribution platform
where Android
developers can promote their apps to the Zedge community. While
space is limited during the initial beta period, the ZDN is free to all
developers who are accepted (for more information see http://zdn.zedge.net/).
“We expect that the Zedge Discovery Network will become a powerful new
channel for growth,” said Zedge CEO Mark Rosner.

About Zedge:

Zedge (www.Zedge.net)
is a mobile content discovery platform used by more than 38 million
unique users per month, across web, mobile and Android. It has an
extensive library of user generated wallpapers, themes, ringtones,
videos, texts, games, and soon, apps. Zedge is headquartered in NY, USA
and Trondheim, Norway with sales/business development and
technology/product being driven out of the respective locations. Zedge’s
majority investor is IDT
Corporation (www.idt.net).

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those with the words
“believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,”
“target” and similar expressions, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements and risk factors included in this document
are made as of the date hereof, based on information available to Zedge
and IDT as of the date thereof, and neither Zedge nor IDT assumes an
obligation to update any forward-looking statements or risk factors.

engageSimply
Judy Shapiro, 917-617-3916
judyshapiro@engageSimply.com

IDT Corporation (NYSE: IDT, IDT.C) today extended the expiration date of
its previously announced exchange offer of its outstanding Common Stock
(NYSE: IDT.C) for shares of Class B Common Stock (NYSE: IDT).

The deadline for tendering shares of Common Stock in the exchange offer
has been extended from 5:00 p.m. EST, on Tuesday, January 4, 2011, to
5:00 p.m. EST, on Tuesday, January 18, 2011.

IDT is extending the offer to exchange for the following reasons: (i)
today it filed with the Securities and Exchange Commission a revised
Offer to Exchange revising its disclosure previously set forth in the
Offer to Exchange and mailed to stockholders in order to respond to
comments received from the SEC; (ii) there were logistic issues in
mailing the exchange offer materials to stockholders and IDT wants to
ensure that all holders have sufficient time to read the materials, make
their determinations and tender if they so desire; and (iii) IDT
recognizes that stockholders may be away during the upcoming holiday
season and therefore may be unable to tender their shares prior to the
original expiration date.

IDT Corporation has been advised that as of 5:00 p.m., EST, on December
20, 2010 approximately 696 shares of its Common Stock had been tendered
in the exchange offer. Tenders of shares of Common Stock must be made,
and may be withdrawn, at any time prior to the expiration of the
exchange offer.

The exchange offer is made upon the terms and conditions set forth in
the Offer to Exchange dated December 2, 2010 and revised as of December
20, 2010, and the related Letter of Transmittal, which have been filed
with the Securities and Exchange Commission.

Holders of our Common Stock should read the exchange offer documents as
revised because they contain important information. Stockholders can get
the exchange offer documents without charge from the website of the SEC
at www.sec.gov.

Forward-Looking Statements

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”), which may
be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K.We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.

Exchange Offer Statement

This press release is for informational purposes only and is neither
an offer to buy nor the solicitation of an offer to sell any shares. The
exchange offer will be made solely by a definitive Offer to Exchange,
related Letter of Transmittal and other related documents that IDT is
sending to its holders of Common Stock. Each holder of our Common Stock
is urged to consult their tax advisor as to the particular tax
consequences of the exchange offer to such stockholder. The materials
have been included as exhibits to IDT’s exchange offer statement on
Schedule TO/ Schedule 13E-3, which was filed with the Securities and
Exchange Commission. These exchange offer materials contain important
information that stockholders are urged to read carefully before making
any decision with respect to the offer. Investors may obtain copies of
these documents for free from the Securities and Exchange Commission at
its website (www.sec.gov).

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C respectively.

IDT Corporation
Investor Relations
Bill Ulrey, 973-438-3838
invest@idt.net

IDT Corporation (NYSE: IDT; IDT.C) will hold an Investor Day in New York
City on the afternoon of Wednesday, February 9, 2011.

For details and registration, please e-mail IDT investor relations (invest@idt.net)
or call (973) 438-3838.

Written materials used or distributed during the Investor Day program
will be posted on the Investor Relations page of IDT Corporation’s
website (www.idt.net/ir)
before market open on the day of the event. An audio webcast of the
Investor Day presentations will also be available through the website,
and will remain posted there for at least sixty days.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C, respectively.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

NEWARK, NJ — December 9, 2010:  IDT
Corporation (NYSE: IDT; IDT.C) reported net income of $15.6 million ($0.70 per
diluted share) for its first quarter of fiscal 2011, the three months ended
October 31, 2010.

FIRST QUARTER FISCAL 2011 SUMMARY

$ in millions, except EPS	1Q11	4Q10	1Q10	YoY Change (%/$)
Revenues	$357.4	$356.0	$327.3	+9.2%
Gross profit	$74.2	$73.2	$69.2	+7.3%
Gross margin percentage	20.8%	20.6%	21.1%	(40 basis points)
Total SG&A expense (including research and development expense)	$60.0	$58.1	$59.7	+0.6%
Adjusted EBITDA	$14.2	$15.1	$9.5	+49.2%
Income from operations	$11.0	$7.8	$0.2	+$10.8
Net income (loss) attributable to IDT	$15.6	$7.5	$(3.5)	+$19.1
Diluted EPS attributable to IDT	$0.70	$0.33	$(0.17)	+$0.87
Net cash provided by operating activities	$5.6	$8.7	$2.2	+$3.4

 

NOTE:
Adjusted EBITDA for all periods presented is a non-GAAP measure representing
income (loss) from operations exclusive of depreciation and amortization, restructuring
and severance charges, and gains on settlements and other, net.  It is one of several key metrics used by
management to evaluate the operating performance of the Company and its
individual business units.  See
reconciliations provided below.

MANAGEMENT COMMENTS

Howard Jonas,
IDT's Chairman and CEO, said, “IDT had an outstanding quarter, delivering $15.6
million in net income and a fourth consecutive quarter of revenue growth.  We recently announced and commenced several
significant, strategic steps designed to realize shareholder value and promote
long term growth and profitability.  We
have begun to pay regular quarterly dividends, and we have offered to exchange
shares of Class B Common Stock for Common Stock, with the objective of simplifying
our equity structure.  We also intend to spin-off
Genie Energy in the current fiscal year and are exploring strategic options with
respect to our valuable VoIP intellectual property.  This quarter's results indicate that both the
telecom business remaining at IDT and Genie Energy have the capacity to
generate cash, and have excellent prospects for continued growth.”

IDT's Chief Financial Officer, Bill
Pereira, added, “Our core businesses continue to perform
extremely well despite facing strong competitive pressures and a tough economic
climate.  IDT Telecom had another very
good quarter, with year over year revenue and Adjusted EBITDA improvements
fueled by exceptional growth in minutes carried on our network.   IDT Energy grew revenues year over year and
maintained strong gross margins even while conducting disciplined expansion into
additional territories in New Jersey and Pennsylvania.”

BALANCE SHEET AND CASH FLOW HIGHLIGHTS

Liquidity increased significantly compared to the prior
quarter.  At October 31, 2010, IDT reported $242.7 million of cash, cash equivalents and
certificates of deposit, including $11.1 million of restricted cash and cash
equivalents.  Current assets totaled
$397.7 million, and current liabilities totaled $289.7 million. 

At July 31, 2010, IDT reported $234.1 million of cash,
cash equivalents, certificates of deposit, and marketable securities, including
$11.8 million of restricted cash and cash equivalents.  Current assets totaled $381.1 million, and
current liabilities totaled $285.0 million. 

Net cash provided by operating activities was $5.6 million
in 1Q11, compared to $2.2 million during the year ago quarter.  Capital expenditures in 1Q11 totaled $3.3
million, compared to $2.8 million in the year ago quarter.

OPERATING RESULTS BY SEGMENT

IDT TELECOM

IDT Telecom includes two reporting segments: Telecom
Platform Services (TPS) and Consumer Phone Services (CPS).  TPS provides various telecommunications
services including prepaid and
rechargeable calling cards, a range of voice over Internet protocol (VoIP)
communications services and wholesale carrier services.  CPS provides both bundled (unlimited local
and long distance) services as well as long distance-only services to consumers
in the United States.  CPS has been in “harvest mode” since fiscal
2006 – maximizing revenues from current customers while maintaining SG&A
and other expenses at the minimum levels essential to operate the business.

IDT TELECOM: 
Telecom Platform Services (TPS)

 

TPS – FIRST QUARTER FISCAL 2011 SUMMARY

$ in millions	1Q11	4Q10	1Q10	YoY Change (%/$)
Revenues	$302.5	$299.7	$275.2	+9.9%
Minutes of use (in millions)	6,086	5,603	4,676	+30.2%
Gross profit	$53.9	$55.7	$47.3	+13.9%
Gross margin percentage	17.8%	18.6%	17.2%	+60 basis points
SG&A expense	$43.6	$44.4	$42.9	+1.8%
Adjusted EBITDA	$10.2	$11.3	$4.4	+130.4%
Income (loss) from operations	$5.5	$4.5	$(3.9)	+$9.4

 

For the first quarter of fiscal 2011, TPS' minutes of use
rose to 6.1 billion, a 30.2% increase compared to the year ago quarter, and a
8.6% increase over the prior quarter, driven primarily by increases in minutes
carried by  both the wholesale carrier
and VoIP solutions businesses.

TPS' revenues in 1Q11 were $302.5 million, a 9.9% increase
compared to the first quarter of fiscal 2010. Revenues increased sequentially
by 0.9%, continuing the trend of sequential quarterly increases that began in the
fiscal second quarter of 2010. 

Year over year, wholesale carrier revenues, which had been
relatively flat throughout fiscal 2010, increased 11.3% reflecting more
successful sales and marketing efforts. 
Revenues from prepaid services businesses increased 3.8%.  Modest growth in traditional prepaid IDT
branded calling cards and online prepaid calling products more than compensated
for revenue lost as a result of the discontinuation of third party provided
domestic mobile top-up card sales during 4Q10. 
International mobile top-up (IMTU) card revenues continued to grow, but
at a reduced rate compared to prior quarters. 
Geographically, prepaid services revenues grew modestly in the U.S. and Europe, strongly in South America, and
declined in Asia. 

Sequentially, the increase in wholesale carrier sales was
mostly offset by a decline in prepaid services sales, primarily reflecting the
discontinuation of domestic mobile top-up sales and a decline in the sales of
traditional IDT branded prepaid calling cards. Geographically, prepaid services
revenues declined in all geographic regions except South
America.

Gross profit at TPS was $53.9 million, a 13.9% increase
compared to 1Q10 and a 3.3% decrease sequentially.

Gross margin at TPS was 17.8%, a 60 basis point increase
compared to the year ago quarter. 
Prepaid services and wholesale carrier both increased gross margins
compared to the prior year, with prepaid services benefiting from the
discontinuation of the low margin domestic mobile top-up card sales. Gross
margin fell 80 basis points compared to 4Q10, partially as a result of certain
non-routine factors which favorably impacted margins in the prior quarter, and
partially as a result of changes in product mix.

TPS' SG&A costs were $43.6 million, a 1.8% increase
year over year and a 1.8% decrease sequentially.  Year over year, reductions in card printing
costs, facilities and equipment maintenance, and consulting fees were partially
offset by increases in bad debt expense, compensation and benefits, and
third-party commissions incurred partially as a result of the continuing
expansion of IDT Telecom's global distribution network.

TPS' Adjusted EBITDA for 1Q11 was $10.2 million, a 130.4%
increase year over year and a 9.2% decline sequentially. 

TPS' depreciation and amortization expense was $4.8
million in 1Q11, a 43.1% decline from the year ago period and a 32.1% decline
sequentially, primarily due to more of IDT Telecom's fixed asset base becoming
fully depreciated and to lower levels of capital expenditures in recent periods. 

TPS' income from operations was $5.5 million in 1Q11,
compared to a $3.9 million loss in 1Q10. 
Sequentially, TPS' income from operations increased by $1.0 million, or
21.1%.

IDT TELECOM:  Consumer
Phone Services (CPS)

CPS' 1Q11 revenues were $7.5 million, a 28.0% decline year
over year, and a 9.7% decline sequentially. 
Gross margin for CPS in Q1 was 53.5%, a 450 basis point decline year
over year, and a 660 basis point decrease sequentially.  In both the prior quarter and the previous
year comparative quarter, CPS' gross margin benefited from the reversal of
certain regulatory and connectivity related accruals.  The current quarter's results are more reflective
of expected gross margin run rates for this segment going forward.

CPS' SG&A expense was $1.9 million, an 8.9% decline
year over year, but a 3.3% increase sequentially.

CPS' Adjusted EBITDA was $2.1 million, a 47.1% decline
year over year, and a 33.4% decrease sequentially, due in part to the reversal
of certain accruals in prior quarters, as noted above. 

CPS' income from operations for 1Q11 was $2.0 million, a
47.2% decline year over year, and a 32.1% decrease sequentially. 

GENIE ENERGY

Genie Energy is comprised of IDT Energy and Genie
Oil and Gas. IDT Energy operates our energy services company that resells
electricity and natural gas to residential and small business customers in New York State, New Jersey
and Pennsylvania.
Genie Oil and Gas consists mainly of (1) American Shale Oil
Corporation (AMSO) which holds and manages our 50% interest in American Shale
Oil, LLC (AMSO, LLC), our shale oil initiative in Colorado,
and (2) our 89% interest in Israel Energy Initiatives, Ltd. (IEI), our
shale oil initiative in Israel.

GENIE ENERGY:  IDT Energy

IDT ENERGY – FIRST QUARTER FISCAL 2011 SUMMARY

$ in millions	1Q11	4Q10	1Q10	YoY Change (%/$)
Revenues	$45.5	$46.5	$40.3	+12.9%
Gross profit	$14.7	$11.2	$14.6	+0.6%
Gross margin percentage	32.4%	24.0%	36.3%	(390 basis points)
SG&A expense	$5.9	$5.5	$4.1	+44.0%
Adjusted EBITDA	$8.8	$5.7	$10.5	(16.4)%
Income from operations	$8.8	$5.6	$10.5	(16.3)%

 

IDT Energy's revenues in 1Q11 were $45.5 million, a 12.9% increase
compared to 1Q10 primarily reflecting higher average revenue per kilowatt-hour
(kWh) in sales of electricity partially offset by a decline in natural gas therms
(THM) sold.  Revenues declined 2.1% sequentially
primarily as the result of a decline in average revenue per kWh and kWh sold
related primarily to seasonal factors. 

IDT Energy served approximately 365,000 meters (207,000
electric and 158,000 natural gas) as of October 31, 2010, a decline of 1.9%
compared to the total a year earlier, and a 1.2% decline sequentially as net
acquisitions in New Jersey and Pennsylvania partially offset net churn in New York State. 
Looking ahead, IDT Energy intends to pursue targeted customer
acquisition programs in select utility territories in both New
Jersey and Pennsylvania, while
anticipating a continued decline in its New York State
meter count as a result of intensified competition and escalating customer
acquisition costs. 

Despite the reduction in meter count, the average rates of
annualized energy consumption, as measured by residential customer equivalents
(RCE's), increased 19.5% year over year and 2.2% sequentially.  (An RCE represents a natural gas customer
with annual consumption of 100MMBtus or an electricity customer with annual
consumption of 10 MWhrs.)  The increases
reflect a gradual shift in IDT's customer base to customers with higher
electric consumption per meter as a result of targeted customer acquisition
programs.

	1Q11	4Q10	3Q10	2Q10	1Q10
RCE's at end of quarter:
Electricity customers	129,169	123,044	104,898	97,670	95,175
Natural gas customers	87,609	89,047	88,680	87,202	86,291
Total	216,778	212,091	193,578	184,872	181,466

 

Electric revenues in 1Q11 were $38.7 million, an 18.0% increase
compared to 1Q10 as a result of increases in both average revenue per kWh and
kWh sold.  Electric revenues declined $2.1
million sequentially reflecting cooler fall weather and the associated decrease
in air conditioning.  Average revenue per
kWh increased 13.0% year over year, and kWh sold increased 4.5%.  The year over year increase in kWh sold
resulted from a 10.4% increase in kWh sold per electric meter, partially offset
by a 5.4% decline in the average electric meters served during the same period.
At October 31, 2010, IDT Energy served approximately 207,000 electric meters
(129,000 RCE's) compared to approximately 213,000 (95,000 RCE's) at October 31,
2009.

Natural gas revenues
in 1Q11 were $6.8 million, a 9.5% decline year over year.  Sequentially, natural gas revenues increased 20.2%,
primarily as a result of seasonal factors which increased THM sold per
meter.  Year over year, average revenues
per THM increased 5.6% compared to the year ago quarter, but THM sold decreased
14.3%.  The decrease in THM sold resulted
from an 11.4% decline in THM sold per meter, while the average number of gas meters
declined 3.3%.  At October 31, 2010, IDT
Energy served approximately 158,000 gas meters (88,000 RCE's) compared to
approximately 159,000 (86,000 RCE's) at October 31, 2009.

IDT Energy's gross
margin in 1Q11 was 32.4%, a 390 basis point decline year over year as electric
cost increases outpaced electric rate increases.  Gross margin for
electric sales was 33.4%, a 540 basis point decline, while gross margins for natural
gas increased by 100 basis points to 26.5%. Year over year, gross margin was
pressured by increasing competition in New York State and the impact of
expansion into new territories in New Jersey and Pennsylvania, where margin was
sacrificed to facilitate customer acquisitions. 

Although these
factors are expected to pressure gross margin for the foreseeable future,
gross margin increased 830 basis points sequentially. Electric sales
recorded a 790 point gross margin increase sequentially as falling
electric prices outpaced a modest decline in electric rates.  The gross margin for gas, which also
increased significantly, reflected falling costs augmented by the impact of
non-routine adjustments related to commodity natural gas purchases which had a
disproportionate impact given the comparatively low level of seasonal natural gas
sales.

SG&A expense in 1Q11 was $5.9 million, a 44.0%
increase year over year and a 7.9% increase sequentially primarily reflecting
increases in customer acquisition costs incurred in New
Jersey and Pennsylvania.
Gross meter acquisitions in 1Q11 were 42,000 compared to 13,600 in the same
period a year ago.  Purchase of
receivables (POR) program costs also increased year over year reflecting higher
revenues and increases by some utilities in the POR fees charged. 

IDT Energy generated $8.8 million in Adjusted EBITDA in
1Q11, a 16.4% decline year over year but a 55.2% increase compared to the prior
quarter.  Income from operations was also
$8.8 million in 1Q11.

GENIE ENERGY:  Genie Oil and
Gas

Genie Oil and Gas' operating expenses consist primarily of
costs incurred by IEI.  IDT accounts for
its 50% stake in AMSO, LLC using the equity method. 

Genie Oil and Gas reported a loss from operations of $2.1
million in 1Q11 including research and development (R&D) expenses of $1.7
million.  In the year ago quarter, the
loss from operations was $1.5 million including $1.2 million in R&D expense. 

IDT's equity in the net loss of AMSO, LLC – $0.8 million in
1Q11 – is included in “Other income (expense), net” in IDT's consolidated
statement of operations. 

During 1Q11, AMSO, LLC, continued construction and ongoing
research and development work to prepare an oil shale pilot test to be
conducted in calendar 2011. Specifically, the AMSO team finalized the pilot
well drilling plan and continued construction work on the surface oil and gas
processing facilities.  The pilot test is
intended to confirm the accuracy of several of the key underlying assumptions
of AMSO, LLC's proposed in-situ heating and retorting process. 

During 1Q11, IEI continued work on the resource
appraisal and characterization study phase of the project, which management
expects to finalize during calendar 2011. To date, the results from the
appraisal process confirm IEI's expectations as to the attractiveness of the
oil shale in the 238 square kilometer License area from the standpoint of
richness, thickness and hydrology.  IEI
is also continuing permitting and other preparatory work required prior to
construction of a pilot plant and operation of a pilot test. The pilot test
will provide a basis to determine the technical, environmental and economic
viability of IEI's proposed commercial process for extracting oil from shale.
Pilot test construction could begin as early as calendar 2011, and pilot test
operations could begin as early as calendar 2012.  Pilot test operations are
contingent on receipt of an extension to the current three year License which
was awarded in July 2008.  The License may
be extended to a total of seven years. Separately, the validity of the License
has been challenged in the Israeli courts. 
Assuming IEI receives an extension to the current License, the lawsuit
is favorably resolved, and IEI successfully demonstrates a commercially viable
technology, management intends to apply for a long-term commercial lease and to
build a commercial production project.

OTHER RECENT DEVELOPMENTS

In October 2010, IDT received $7.7 million from the
settlement of an arbitration claim it had brought related to certain auction
rate securities holdings. The securities' original cost was $14.3 million.  At July 31, 2010, the carrying value of these
securities was $0.2 million.  IDT
incurred legal fees and other costs in connection with the arbitration and
settlement of $2.0 million.  IDT
recognized a gain of $5.4 million from the settlement which is included in
“Other income (expense), net” in the consolidated statement of operations.  Also during the quarter, IDT received $2.7
million from its insurance carrier pursuant to claims it made related to water
damage at its building located at 520
Broad Street, Newark, New Jersey.  IDT recorded a gain of
$1.9 million during the quarter from this insurance claim which is included in
“Other operating gains” in the consolidated statement of operations.

On November 2, 2010, IDT's Board of Directors:

§        
Authorized a cash dividend of $0.22 per share for
the first quarter of its 2011 fiscal year that was paid on November 23, 2010 to
shareholders of record at the close of business on November 15, 2010 of IDT
Corporation Common Stock, Class A Common Stock and Class B Common Stock. The
aggregate dividend paid was $5.0 million. 
The Board also stated its intent for IDT Corporation to pay future
quarterly dividends based on operating performance and available resources,
including a comparable dividend for the second quarter of fiscal 2011 (see
below).

§        
Approved the launch of an offer to exchange one
share of Class B Common Stock for each share of Common Stock outstanding (see
below).  

§        
Directed management to pursue a spin-off of IDT's
Genie Energy division.  The spinoff of
Genie Energy under consideration is intended to be tax-free to IDT
stockholders. No date has been set for the spin-off as yet.

§        
Directed management to explore options to
license and defend certain intellectual property rights currently owned by IDT
Telecom and Net2Phone related to VoIP and other aspects of the
telecommunications industry including a possible spin-off of a separate
entity. 

On November 15, 2010, after the close of the first quarter
of fiscal 2011, IDT's Genie Energy division announced that Lord (Jacob) Rothschild
and Rupert Murdoch had each
purchased separate equity stakes equivalent to a cumulative 5.5% stake in Genie
Oil and Gas Inc., for a total of $11.0 million. 
Genie Oil and Gas Inc., consists mainly of IDT's interests in AMSO and
IEI.  Jacob Rothschild will also join Rupert Murdoch and other members previously
announced on Genie Energy's Strategic Advisory Board. 

On December 2, 2010, IDT commenced an offer to exchange
one share of Class B Common Stock (NYSE: IDT) for each share of Common Stock
(NYSE: IDT.C) outstanding.  As of December
1, 2010 there were 3,728,655 shares of
IDT Common Stock outstanding.  The offer
will expire on January 4, 2011 unless extended. The exchange offer is being
made to simplify IDT's equity structure in light of the limited liquidity in
the market for the Common Stock and the resulting disparity in the trading
prices for the two classes despite the fact
that the equity rights associated with the shares of each class are identical.  IDT's Chairman and CEO, Howard
Jonas, who controls approximately 76% of the combined voting
power of IDT's outstanding capital stock, will adjust his holdings of Class A
Common Stock and Common Stock so as not to increase his combined voting power
as a result of this exchange offer.  The
consummation of the exchange offer is conditioned on at least 1,115,970 shares
of Common Stock being tendered and not properly withdrawn in the exchange offer
by IDT stockholders other than Mr. Jonas and his affiliates.

Following the consummation of the exchange offer, if a
sufficient number of shares of Common Stock are tendered, the New York Stock Exchange
(the “NYSE”) may delist or IDT may seek to delist the Common Stock from the NYSE
and de-register the Common Stock.  If
less than all of the Common Stock is tendered, IDT intends to seek approval from
its stockholders to amend its certificate of incorporation so that each
remaining share of Common Stock will automatically be converted and
reclassified into one share of Class B Stock. In that event, IDT would no
longer have shares of Common Stock authorized or outstanding and only two
classes of common stock would remain – Class A Common Stock, which is not
publicly traded, and Class B Common Stock.

On December 6, 2010, IDT's Board
declared a cash dividend of $0.22 per share for the second quarter of
its 2011 fiscal year.  The dividend will
the paid or about December 28, 2010 to shareholders of record at the
close of business on December 16, 2010. 
Holders of IDT Corporation Common Stock, Class A Common Stock and Class
B Common Stock will receive the dividend. 
The ex-dividend date is December 14, 2010.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

§        
Management's discussion of IDT's financial and
operational results is posted in an audio file on the IDT website at https://www.idt.net/about/ir/overview.asp.  The audio file (in MP3 format) may be played
directly from the website or downloaded for later playback.

§        
An archived copy of this audio file will be
available on the Investor Relations page of the IDT website, under the
“Presentations” heading, for at least one year after the webcast.

§        
Copies of this release – which includes a
reconciliation of the Non-GAAP financial measures that are both used herein and
referenced during management's discussion of results – are available in the
Investor Relations portion of IDT's website, at https://www.idt.net/about/ir/overview.asp.

§        
Q&A will be in a written format.  Investors and others interested in IDT are
invited to e-mail questions for management to invest@idt.net.  IDT will accept questions received through the
close of business on Monday, December 13, 2010. Questioners must identify
themselves by name and (if applicable) firm. When management can constructively
answer the question, the initial question, the questioner's name and firm, and
management's response will be posted in a document available on IDT
Corporation's website and in a Form 8-K filing as early as Thursday, December
16, 2010 following the market close.

ABOUT IDT CORPORATION

IDT Corporation
(www.idt.net) is a consumer services company with
operations primarily in the telecommunications and energy industries.  IDT Corporation's Class B Common Stock and
Common Stock trade on the New York Stock Exchange under the ticker symbols IDT
and IDT.C, respectively.

In this press release, all statements that are not
purely about historical facts, including, but not limited to, those in which we
use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,
“target” and similar expressions, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.  While
these forward-looking statements represent our current judgment of what may
happen in the future, actual results may differ materially from the results
expressed or implied by these statements due to numerous important factors,
including, but not limited to, those described in our most recent report on SEC
Form 10-K (under the headings “Risk Factors” and “Management's Discussion and
Analysis of Financial Condition and Results of Operations”), which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. 
These factors include, but are not limited to, the following: potential
declines in prices for our products and services; our ability to maintain and grow our calling card business, our wholesale
telecommunication businesses and our retail energy business; availability of
termination capacity to particular destinations; our ability to maintain
carrier agreements with foreign carriers; our ability to obtain
telecommunications products or services required for our products and services;
the business and regulatory evolution of and competition and unfair business
practices in, the energy services business in New York State, New Jersey and
Pennsylvania; financial stability of our major customers; our ability to maintain
our income and improve our cash flow; impact of government regulation;
effectiveness of our marketing and distribution efforts; and general economic
conditions.  We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press release,
whether as a result of new information, future events or otherwise.

Contact:

IDT Corporation Investor
Relations

Bill Ulrey

william.ulrey@idt.net

973-438-3838

Click on attachment to download entire earnings release including financial statements and Non-GAAP reconciliation tables.

Android App Developers Invited to Beta Test New
Zedge Discovery Network

Zedge Targets Independent App Developers with Flat
Fees, Fair Rankings

Zedge, a leading mobile
content discovery platform with 30 million monthly unique visitors,
invites Android app developers to promote
their apps on Zedge. Android developers will now be able to
participate in an app promotional network that does not prioritize based
on pay per click or pay per download. Rather, it utilizes fair and open
rankings available to all developers and not just those with deep
pockets to pay for promotion. Space is limited, but initial entry during
the beta period is free to all developers who are accepted.

“Independent app developers are creating the most astounding, brilliant
and innovative apps for Android, only to get buried by less impressive
output from commercial production shops with big marketing budgets,”
said Zedge’s Co-Founder and President, Tom Arnoy. “The Zedge Discovery
Network offers developers a better world….a true meritocracy where the
best apps will flourish. In other words, apps that the Zedge users want
but have not yet been able to discover will rise to the top of our
platform.”

The pricing model is as unique as the offering. Developers will be able
to access the platform for a flat monthly fee per app based on company
size, complete with a 10 day free trial period. Developers who
participate in the beta prior to launch will also receive three months
access free. Developers may cancel at any time.

“We have established a pricing system that will encourage independent
developers. The industry standard pay-per-click and pay-per-download
pricing models have created a stifling ecosystem that rewards deep
pockets and quantity rather than quality. Our approach, on the other
hand, rewards quality and creativity. We expect to accept only good and
relevant apps into the network,” said Mark Rosner, CEO of Zedge, “and
we’ll be able to provide Android developers with access to a large,
carefully targeted and highly engaged user community.”

For further information, please visit the Zedge
Discovery Network.

About Zedge:

Zedge (www.Zedge.net)
is a leading mobile content discovery platform used by more than 30
million unique users per month, across web, mobile and Android. It has
an extensive library of free user generated wallpapers, themes,
ringtones, videos, texts, games, and now, apps. Zedge’s majority
investor is IDT
Corporation (www.idt.net).

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those with the words
“believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,”
“target” and similar expressions, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements and risk factors included in this document
are made as of the date hereof, based on information available to Zedge
and IDT as of the date thereof, and neither Zedge nor IDT assumes no
obligation to update any forward-looking statements or risk factors.

Zedge
Judy Shapiro, 917-617-3916
Press@Zedge.net

The Board of Directors of IDT Corporation (NYSE: IDT, IDT.C) today
declared a cash dividend of $0.22 per share for the second quarter of
its 2011 fiscal year.

The dividend will the paid or about December 28^th to
shareholders of record at the close of business on December 16^th.
Holders of IDT Corporation Common Stock, Class A Common Stock and Class
B Common Stock will receive the dividend. The ex-dividend date is
December 14^th.

“We are executing on our previously announced plans to generate value
for our shareholders,” said Howard Jonas, IDT’s CEO. “While we continue
to invest in our long-term value creation propositions, we are sharing
the benefits of our current profitable operations with our shareholders.
The Board has indicated that it intends to continue paying dividends
commensurate with the Company’s operational performance, financial
resources and capital requirements.”

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”), which may
be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K.We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.

About IDT Corporation:

IDT
Corporation (www.idt.net) is a
consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C, respectively.

IDT Corporation
Investor Relations
Bill Ulrey, 973-438-3838
invest@idt.net

IDT Corporation (NYSE: IDT, IDT.C) has initiated an offer to exchange
shares of its outstanding Common Stock (NYSE: IDT.C) for shares of Class
B Common Stock (NYSE: IDT). For each outstanding share of Common Stock,
IDT is offering to exchange one share of Class B Common Stock.

As of December 1, 2010, there were 3,728,654 shares of Common Stock
outstanding. The Company previously stated that the exchange offer is
being made to address the limited liquidity in the market for the Common
Stock and the resulting disparity in the trading prices between the two
classes of Common Stock — despite the fact that the equity rights
associated with the shares of each class are nearly identical.

Following the completion of the exchange offer, the Common Stock may be
delisted from the New York Stock Exchange.

Howard Jonas, who controls approximately 76% of the combined voting
power of IDT’s outstanding capital stock, will adjust his holdings of
IDT Class A Common Stock and Common Stock so as not to increase his
combined voting power as a result of the exchange offer.

The exchange offer is made upon the terms and conditions set forth in
the Offer to Exchange dated December 2, 2010, and the related Letter of
Transmittal, which have been filed with the Securities and Exchange
Commission and are being made available to holders of IDT Common Stock
(see below).

The offer will expire at 5:00 p.m. EST, on Tuesday, January 4, 2011,
unless extended by IDT. Tenders of shares of Common Stock must be made
prior to the expiration of the exchange offer and may be withdrawn at
any time prior to the expiration of the exchange offer.

The consummation of the exchange offer is conditioned on at least
1,115,970 shares of Common Stock being tendered and not properly
withdrawn in the exchange offer by IDT stockholders other than Mr. Jonas
and his affiliates.

This press release is for informational purposes only and is neither an
offer to purchase nor a solicitation to buy any shares of our Common
Stock, nor is it a solicitation for acceptance of the exchange offer.
The exchange is only being made by, and pursuant to, the terms of the
exchange offer documents, including the Offer to Exchange and the
related Letter of Transmittal, that IDT is distributing to holders of
its Common Stock. The Offer to Exchange and the related Letter of
Transmittal have also been filed today with the SEC as an exhibit to
IDT’s Schedule TO/Schedule 13E-3 and will be mailed to holders of its
Common Stock. Those documents contain details of the offer, including
complete instructions on the exchange process procedure along with the
transmittal forms and other data.

Holders of our Common Stock should read the exchange offer documents
because they contain important information. Stockholders can get the
exchange offer documents without charge from the website of the SEC at www.sec.gov.

Holders of our Common Stock will also be able obtain the exchange offer
documents from IDT without charge by directing a request to IDT
Corporation, 520 Broad Street, Newark, New Jersey 07102, Attention: Bill
Ulrey, Vice President-Investor Relations and External Affairs,
Telephone: (973) 438-3838.

IDT’s Board of Directors has approved the exchange offer. However,
neither IDT, nor its Board of Directors, makes any recommendation to any
stockholder as to whether to tender or refrain from tendering any
shares. IDT has not authorized any person to make any such
recommendation.

Forward-Looking Statements

In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”), which may
be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K.We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.

Exchange Offer Statement

This press release is for informational purposes only and is neither
an offer to buy nor the solicitation of an offer to sell any shares. The
exchange offer will be made solely by a definitive Offer to Exchange,
related Letter of Transmittal and other related documents that IDT is
sending to its holders of Common Stock. Each holder of our Common Stock
is urged to consult their tax advisor as to the particular tax
consequences of the exchange offer to such stockholder. The materials
have been included as exhibits to IDT’s exchange offer statement on
Schedule TO/ Schedule 13E-3, which was filed with the Securities and
Exchange Commission. These exchange offer materials contain important
information that stockholders are urged to read carefully before making
any decision with respect to the offer. Investors may obtain copies of
these documents for free from the Securities and Exchange Commission at
its website (www.sec.gov)

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C respectively.

IDT Corporation
Investor Relations
Bill Ulrey, 973-438-3838
invest@idt.net