The Board of Directors of IDT Corporation (NYSE: IDT) today raised IDT’s
cash dividend by approximately five percent from $0.22 per share to
$0.23 for the third quarter of IDT’s 2011 fiscal year.

“IDT’s Board made a commitment to pay dividends commensurate with the
Company’s operational performance, financial resources and capital
requirements,” commented IDT’s Chairman and CEO, Howard Jonas. “Our
businesses have continued to generate consistent earnings and cash-flow
and our liquidity and balance sheet have continued to improve even as we
have paid dividends at the prior levels and invested in key growth
opportunities. We are pleased to increase our dividend and continue
sharing profits with our investors.”

The dividend will be paid on July 12, 2011 to shareholders of record of
IDT Corporation Class A Common Stock and Class B Common Stock as of the
close of business on July 1^st. The ex-dividend date will be
June 29th.

In addition, a Special Committee of the Board has approved the purchase
by the Company of 302,000 shares of Class B Common stock from Howard
Jonas at $24.83 per share – the closing price for the Class B stock on
Monday, June 20, 2011. Following this purchase, Mr. Jonas will own or
control 1,574,327 shares of IDT Class A Stock and 3,795,859 shares of
IDT Class B Stock, together representing 23.67% of the total outstanding
capital stock of the Company.

“In 2008, Howard Jonas agreed to take his base salary in stock in lieu
of cash for a five-year period,” said the Reverend Eric Cosentino,
Chairman of the Corporate Governance and Special Committees. “His
decision to forego a cash salary provided a timely vote of confidence in
the Company. The Board felt that buying shares directly from Howard
Jonas now was in the best interest of the stockholders. It will avoid
the disruption of having those shares sold into the market while
increasing the relative equity of all shareholders.”

The Company recently disclosed that it was evaluating certain issues
with respect to the previously announced intent to spin-off Innovative
Communications Technologies, Inc, (ICTI). ICTI was to be the holder of
certain patents and the related licensing business of the Company
covering communications over computer networks including Voice over
Internet Protocol (VoIP) communications. On Monday, the Board determined
not to proceed with the spin-off, expressing concern that placing the
enforcement of the patents with an independent entity not under the
Company’s control would increase risks. The Company will continue to
explore options for maximizing the potential returns from the IP while
minimizing the associated risks to create the greatest overall value.

Finally, the Company re-affirmed its current plan to proceed with the
spin-off of Genie Energy (comprising IDT Energy and Genie Oil and Gas).
The Company recently filed a private letter ruling request, seeking the
IRS’ concurrence that a spin-off of Genie Energy would be tax free to
the Company and its shareholders. The Company is awaiting the IRS ruling
and will continue to monitor developments in the markets and the
business units to ensure that a spin-off remains in the best interests
of shareholders. The Company expects the spin-off to go effective in the
fall.

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 (NYSE:IDT) is a consumer services company with
operations primarily in the telecommunications and energy industries.
Find out more at www.idt.net.

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

 

NEWARK, NJ — June 13, 2011:  IDT Corporation (NYSE: IDT) reported net income of $7.0 million ($0.31 per diluted share) for its third quarter of fiscal 2011, the three months ended April 30, 2011.

THIRD QUARTER FISCAL 2011 SUMMARY

$ in millions, except EPS	3Q11	2Q11	3Q10	YoY Change (%/$)
Revenue	$397.0	$401.5	$355.4	+11.7%
Gross profit	$77.4	$72.2	$74.2	+4.3%
Gross margin	19.5%	18.0%	20.9%	(140) basis points
Total SG&A expense (including R&D expense)	$65.9	$62.4	$56.1	+17.5%
Adjusted EBITDA	$11.5	$9.8	$18.1	(36.6)%
Income from operations	$6.2	$8.1	$16.6	(62.4)%
Net income attributable to IDT	$7.0	$3.9	$12.6	(44.5)%
Diluted EPS attributable to IDT	$0.31	$0.18	$0.58	($0.27)
Net cash provided by operating activities	$21.0	$23.9	$32.2	(34.9)%

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 reported its sixth straight quarter of positive net income even as we continue to invest in growth opportunities.  IDT Energy ramped up customer acquisitions adding five thousand net meters.  IDT Telecom continues to build its global distribution capabilities, and launched its remittance clearing house – a significant step in the development of a money transfer business.  Our oil shale projects are making good progress and pilot test operations are expected to begin in Colorado later this summer.”

IDT's Chief Financial Officer, Bill Pereira said, “Operationally, the third quarter was distinguished by a substantial rebound in IDT Energy's gross margin and another strong performance from IDT Telecom's Telecom Platform Services segment which recorded a 14.8% year over year revenue increase on a 24.2% jump in minutes of use. Overall, we reported the highest gross profit in the past seven quarters and our balance sheet and cash position continue to improve even as we simultaneously increase our rate of investment in future growth and distribute dividends.”

INCOME STATEMENT, BALANCE SHEET AND CASH FLOW HIGHLIGHTS AND NOTES

In 3Q11, net income attributable to IDT of $7.0 million reflected a non-routine tax benefit of $3.5 million related to the closure of IDT Telecom's operations in Puerto Rico (see Other Recent Developments below). 

At April 30, 2011, IDT reported $279.9 million of cash, cash equivalents and certificates of deposit, including $7.0 million of restricted cash and cash equivalents.  Current assets totaled $450.1 million, and current liabilities totaled $317.8 million.  Non-current liabilities totaled $44.4 million, of which $33.5 million was mortgage debt on real estate.

Net cash provided by operating activities in 3Q11 was $21.0 million.  Capital expenditures during the same period totaled $3.1 million.  For the first nine months of the fiscal year, net cash provided by operating activities was $50.5 million and capital expenditures were $9.2 million.   Net cash provided by operating activities during the first nine months of FY 2010 were $47.5 million, and capital expenditures totaled $6.6 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 – THIRD QUARTER FISCAL 2011 SUMMARY

$ in millions	3Q11	2Q11	3Q10	YoY Change
Revenue	$334.5	$334.4	$291.3	+14.8%
Minutes of use (in millions)	6,615	6,552	5,324	+24.2%
Gross profit	$55.3	$55.1	$52.6	+5.0%
Gross margin	16.5%	16.5%	18.1%	(160) basis points
SG&A expense	$46.1	$44.7	$42.5	+8.5%
Adjusted EBITDA	$9.2	$10.4	$10.1	(9.4)%
Income from operations	$4.9	$9.4	$12.8	(61.7)%

 TPS' revenue in 3Q11 was $334.5 million, a 14.8% increase compared to 3Q10 and flat compared to the prior quarter.  Average revenue per minute declined 7.6% compared to the year ago period, and by 0.8% sequentially, reflecting both a continuing industry-wide decline in termination prices for international long distance calls, and changes in the product/call destination mix.

Wholesale carrier revenue, which accounted for 42.6% of TPS' revenue in 3Q11 and 39.8% in 3Q10, increased 23.0% year over year, but declined by 2.3% sequentially.  The YoY increase reflected the strong growth in minutes of use as a result of continued success in IDT Telecom's sales, marketing and pricing efforts.  The third quarter of IDT's 2011 fiscal year was comprised of 89 days, compared to 92 days for Q2.  The sequential decline in revenue, as a result of a decline in wholesale carrier minutes of use during Q3, mirrors the sequential reduction of days in the quarter.

Revenue from TPS' retail sales channels increased year over year and had a nominal increase sequentially.  In the United States, BOSS Revolution, IDT's pay-as-you-go, cardless international calling service grew very strongly, while international mobile top-up (IMTU) card revenue increased as well.  These year over year gains offset declining revenue from the sale of traditional, disposable IDT-branded calling cards.  

Overseas, YoY, European retail revenues declined slightly.  Calling card revenues increased in South America, while falling in Asia. 

TPS' minutes of use in 3Q11 were 6.615 billion, a 24.2% increase year over year.  The increase was driven by the wholesale carrier and reseller channels, partly offset by declines in U.S. and Asian retail minutes of use.  Sequentially, minutes of use increased slightly despite the fact that 3Q11 had three fewer days than 2Q11. The sequential increase was almost wholly attributable to growth in minutes of use generated by the reseller channel.

Gross profit at TPS was $55.3 million, a 5.0% increase compared to 3Q10 and a 0.2% increase compared to 2Q11.

TPS' gross margin was 16.5%, a 160 basis point decrease YoY and unchanged from the prior quarter.  YoY, revenue from relatively lower margin IMTU cards, wholesale carrier and reseller channel traffic increased, while revenue from relatively higher margin traditional prepaid calling card products decreased to yield the net decrease in gross margin.

TPS' SG&A costs were $46.1 million, an 8.5% increase compared to 3Q10 and a 3.1% increase compared to 2Q11.  As a percentage of revenue, SG&A costs were 13.8%, compared to 14.6% in 3Q10 and 13.4% in 2Q11.  Compared to the year ago quarter, marketing costs, compensation and third party commissions, and legal fees increased, but at a lower rate than revenue growth.  The increase in SG&A costs compared to 2Q11 was due primarily to higher litigation-related legal fees.

TPS' Adjusted EBITDA for 3Q11 was $9.2 million, a 9.4% decrease YoY and a 12.0% decrease sequentially. 

TPS' depreciation and amortization expense was $4.3 million in 3Q11, a 34.2% decline from the year ago period and a 9.3% 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 continued YoY reductions in depreciation and amortization expense although at a reduced rate. 

TPS' income from operations was $4.9 million, compared to $12.8 million in 3Q10 and $9.4 million in 2Q11. TPS' income from operations benefitted from $10.0 million and $4.6 million in Other Gains in 3Q10 and 2Q11, respectively. The $10.0 million gain in 3Q10 was the result of the March 2010 settlement of calling card litigation between IDT and certain defendants. The $4.6 million gain in 2Q11 was the result of a $14.4 million payment that we received from Cablevision, offset by a $9.8 million accrual that we recorded in connection with the verdict in the patent litigation initiated by Alexsam, Inc. (see Other Recent Developments below).

IDT TELECOM:  Consumer Phone Services (CPS)

CPS – THIRD QUARTER FISCAL 2011 SUMMARY

$ in millions	3Q11	2Q11	3Q10	YoY Change
Revenue	$6.3	$6.9	$8.6	(27.3)%
Gross profit	$3.3	$3.8	$4.6	(28.0)%
Gross margin	52.5%	55.6%	53.0%	(50) basis points
SG&A expense	$1.8	$1.8	$2.1	(16.7)%
Adjusted EBITDA	$1.5	$2.0	$2.5	(37.7)%
Income from operations	$1.5	$2.0	$2.4	(37.6)%

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 3Q11, 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 – THIRD QUARTER FISCAL 2011 SUMMARY

$ in millions	3Q11	2Q11	3Q10	YoY Change
Revenue	$53.8	$57.8	$53.8	(0.1)%
Gross profit	$16.8	$11.3	$15.7	+7.0%
Gross margin	31.2%	19.6%	29.1%	+210 basis points
SG&A expense	$8.2	$5.9	$5.7	+42.4%
Adjusted EBITDA	$8.6	$5.4	$9.9	(13.5)%
Income from operations	$8.6	$5.4	$9.9	(13.4)%

IDT Energy's revenue in 3Q11 was $53.8 million, the same as in 3Q10.  Increases in natural gas (Therms (THM)) and electric (Kilowatt Hours (kWh)) units sold were offset by lower revenue per THM sold and, to a lesser extent, lower revenue per kWh sold. Revenue decreased 7.0% sequentially primarily reflecting the seasonal decrease in gas consumption.

As of April 30, 2011, IDT Energy served approximately 378,000 meters compared to 364,000 meters as of April 30, 2010 – a 3.9% increase YoY- and 373,000 meters as of January 31, 2011 – a 1.5% increase. 

The average rates of annualized energy consumption for all IDT Energy meters served, as measured by residential customer equivalents (RCEs), are presented in the chart below.  (An RCE represents a natural gas customer with annual consumption of 100MM Btus or an electricity customer with annual consumption of 10 MWhrs.)  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.  The slight decline in electricity customer RCE's sequentially resulted primarily from the acquisitions of customers with average consumption profiles relatively lower than the consumption profiles of customers who switched to other providers during the quarter. 

IDT Energy – RCEs at End of Quarter (in thousands)
	3Q11	2Q11	1Q11	4Q10	3Q10
Electricity customers	119	124	122	117	103
Natural gas customers	94	91	87	88	88
Total	213	215	209	205	191

Electric revenue in 3Q11 was $29.4 million, a 0.1% increase YoY.  Compared to the year ago quarter, kWh sold increased 1.2%, partially offset by a decline of 1.1% in average revenue per kWh.  Electric revenue declined 0.7% sequentially reflecting a seasonal reduction in kWh sold almost wholly offset by an increase in revenue per kWh. 

At April 30, 2011, IDT Energy served approximately 210,000 electric meters, representing 119,000 RCEs, compared to approximately 205,000 meters, representing approximately 103,000 RCEs, at April 30, 2010.

Natural gas revenue in 3Q11 was $24.4 million, a 0.3% decline YoY.  Sequentially, natural gas revenue declined 13.6% reflecting the seasonal decrease in gas consumption for heating.  THM sold increased 8.7% compared to 3Q10, but the increase was offset by a decline in average revenue per THM of 8.3%. 

At April 30, 2011, IDT Energy served approximately 168,000 gas meters, representing 94,000 RCEs, compared to approximately 159,000 meters, representing approximately 88,000 RCEs, at April 30, 2010.

IDT Energy's gross margin in 3Q11 was 31.2%, a 210 basis point increase YoY and a 1,160 basis point increase sequentially.  Gross margin for electric sales was 39.3%, a 510 basis point increase YoY, and a 2,210 basis point increase sequentially.  The gross margin for natural gas was 21.4% in 3Q11, a 170 basis point decline YoY and a 60 basis point decline sequentially. 

IDT Energy's margin on electricity sales was impacted by 8.8% and 18.2% declines, respectively, in YoY and sequential average costs per kWh.  The margin declines in gas sales reflected reductions in average cost per THM of 6.2% and 2.5% compared to 3Q10 and 2Q11 respectively, which were more than offset by declines in average revenue per THM.  IDT Energy reduced its gas prices charged to customers to facilitate new customer acquisition and reduce churn among existing customers during the latter part of the heating season.

SG&A expense in 3Q11 was $8.2 million, a 42.4% increase YoY and a 38.6% increase sequentially, primarily reflecting higher customer acquisition and marketing costs associated with the continued expansion into New Jersey and Pennsylvania, which began in 3Q10.  Gross meter acquisitions in 3Q11 were approximately 56,000 compared to 32,000 in the same period a year ago and 47,000 in the previous quarter. 

IDT Energy generated $8.6 million in Adjusted EBITDA in 3Q11, a 13.5% decline YoY but a 59.2% increase sequentially.  Income from operations was also $8.6 million, a 13.4% decline YoY but a 59.2% increase sequentially.

GENIE ENERGY:  Genie Oil and Gas

IDT accounts for Genie's stake in AMSO, LLC using the equity method.  IDT's equity in the net loss of AMSO, LLC – $1.2 million in 3Q11 – is included in “Other (expense) income, net” in IDT's consolidated statement of operations. 

During 3Q11, AMSO, LLC continued advanced stage construction work on the surface oil and gas processing facilities while drilling pilot wells for its upcoming pilot test in Colorado.  The pilot test is expected to begin late this summer and 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 $2.7 million during 3Q11, a 35.3% increase compared to 3Q10 and a 13.7% decrease compared to 2Q11.  The loss from operations in 3Q11, 3Q10 and 2Q11 includes $2.2 million, $1.6 million and $1.8 million, respectively, in research and development (R&D) expense.

During 3Q11, IEI continued working on the resource appraisal and characterization study phase of the project. IEI expects to finalize the field work of this phase during calendar 2011. To date, the results from the appraisal process, both from field tests and laboratory experiments, 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 and operation 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 fourth quarter of calendar 2011, and pilot test operations could begin in calendar 2012. 

In future quarters, management anticipates continued, significant increases in operating costs for both AMSO, LLC and IEI reflecting the costs of facility construction, drilling and operations of their respective pilot tests as well as further staffing for engineering and scientific operations and business development activities.

OTHER RECENT DEVELOPMENTS

On February 15, 2011, Alexsam, Inc. secured a $9.1 million verdict against IDT for damages related to alleged infringement by IDT of two patents related to the activation of phone and gift cards over a point-of-sale terminal.  IDT intends to appeal the verdict and does not expect that the decision will have a material impact on its future business operations.

In February 2011, IDT liquidated its Puerto Rico operating entity.  The final Puerto Rico tax return was filed in April claiming a refund of $4.8 million, which IDT expects to receive in calendar 2011.

On March 15, 2011, IDT's subsidiary, Innovative Communications Technologies, Inc. (ICTI) filed a Form 10 registration statement with the SEC related to the spin-off of ICTI to IDT's stockholders.  ICTI will own a portfolio of patents related primarily to communications over computer networks, including VoIP, and the licensing business related to those patents.   IDT is currently evaluating issues related to the spin-off to achieve the greatest combination of value creation and risk management. 

In March 2011, IDT amended its lease for office space at 550 Broad Street, Newark, New Jersey to extend the term of the lease to September 2012. The lease was set to expire in May 2011.

On April 4, 2011, IDT shareholders voted to amend IDT's certificate of incorporation so that each remaining share of Common Stock was converted and reclassified into one share of Class B Common Stock.  The Common Stock (formerly IDT.C) was subsequently delisted from the NYSE and de-registered under the Securities Exchange Act of 1934.  IDT now has only two classes of common stock – Class A Common Stock and Class B Common Stock. Only shares of IDT's Class B common stock (NYSE: IDT) are publicly traded. 

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 Thursday June 16, 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's website and in a Form 8-K filing as early as Tuesday, June 21, 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 trades on the New York Stock Exchange under the ticker symbol IDT.

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 has created a resource to provide investors, employees and others interested in our Company with a convenient way to follow public news related to our businesses.

The IDT blog – http://blog.idt.net – provides links to news stories published about IDT and the industries in which we operate. If you follow IDT, the blog may help you keep apprised of current developments.

We welcome your comments, feedback and suggestions.

IDT Investor Relations

invest@idt.net  

IDT Corporation (NYSE: IDT) has scheduled its presentation of financial
and operational results for the third quarter of fiscal 2011, the three
months ended April 30^th, on Monday, June 13, 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 Thursday, June 16, 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
Tuesday, June 21, 2011 following the market close.

About IDT Corporation:

IDT
Corporation (NYSE: IDT) is a consumer services company with
operations primarily in the telecommunications and energy industries.
For more information, see our website at www.idt.net.

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

IDT Corporation (NYSE: IDT) said today that it has established an
international remittance clearinghouse (RCH) for mobile network
operators.

The RCH facilitates connectivity between traditional, cash-based, money
transfer operators and mobile wallets utilizing IDT’s economical
transaction settlement and foreign currency exchange services. These
services will enable mobile network operators to expand their reach
particularly into unbanked immigrant populations in developed countries.

IDT will launch RCH services with Smart Communications, Inc. and Globe
Telecom in the Philippines. Smart and Globe serve about 69 million
subscribers and nearly 10 million mobile wallets in aggregate. Utilizing
IDT’s RCH, Smart Money account holders and Globe’s GCASH account holders
will be able to receive proceeds from traditional cash based money
transfer transactions and be able to use those funds to make payments or
withdraw cash in minutes.

“Our remittance clearinghouse enables mobile network operators to
economically access the traditional international remittance flows and
expand the reach of their mobile wallet infrastructures,” said David
Weiss, EVP, Global Banking and Network Products for IDT.

IDT Financial Services (IDTFS) Ltd, a licensed bank headquartered in
Gibraltar, will conduct all banking related activities for the RCH
including transaction processing, foreign exchange management and
settlement of funds within the ecosystem. IDTFS will also assure
regulatory compliance and integrity for remittance clearinghouse
operations.

Remittances initiated by immigrants in developed countries are a large
and growing segment of the approximately $325 billion dollars in global
remittances sent annually to developing countries. IDT plans to leverage
its relationship with over 200 mobile operators worldwide, its banking
capabilities provided by IDTFS, and its worldwide distribution reach
serving immigrant populations to enable remittances from developed
countries to developing countries on a global scale. Potential RCH
clients include both carriers and traditional cash-based money transfer
organizations.

ABOUT IDT CORPORATION:

IDT
Corporation (NYSE:IDT) is a consumer services company with
operations primarily in the telecommunications and energy industries.
Learn more at www.idt.net.

ABOUT IDTFS:

IDT Financial Services Limited is a regulated bank, licensed by the
Financial Services Commission (FSC), Gibraltar, under the Banking Act
1992. IDT Financial Services Limited is a wholly owned subsidiary of IDT
Corporation

ABOUT SMART COMMUNICATIONS, INC.:

Smart Communications, Inc. is the Philippines’ leading wireless services
provider with 45.6 million subscribers on its GSM network as of
end-December 2010. Smart has built a reputation for innovation, having
introduced world-first wireless data services, including mobile commerce
services such as Smart Money, Smart Load and Smart Padala. Since 2000,
Smart has been actively promoting mobile commerce usage in the
Philippines through various services that run on the Smart Money
Platform, benefitting over 8.5 million Filipinos using Smart Money.
Smart also offers 3G and HSPA services. Its Smart Link service provides
communications to the global maritime industry. Smart Broadband, Inc., a
wholly-owned subsidiary, offers a wireless broadband service, Smart BRO,
with 1.35 million subscribers as of end-December 2010. Smart is a
wholly-owned subsidiary of the Philippines’ leading telecommunications
carrier, the Philippine Long Distance Telephone Company. For more
information, visit www.smart.com.ph.

ABOUT GLOBE TELECOM’S GXI AND GCASH:

G-Xchange, Inc. (GXI) is a pillar in m-commerce and a fully owned
subsidiary of Globe Telecom, a leading full-service telecommunications
company in the Philippines. GXI pioneered the mobile commerce service
called GCASH, launched in the Philippines in October 2004. GCASH is an
internationally acclaimed micro-payment service that transforms a mobile
phone into a virtual wallet for secure, fast, and convenient money
transfers at the speed and cost of a text message. Since the GCASH
launch, GXI has established a wide network of local and international
partners that includes government agencies, utility companies,
cooperatives, insurance companies, remittance companies, universities,
and commercial establishments offering GCASH services. GXI made a major
breakthrough in being the first non-bank institution to launch a
customizable ATM Card linked to a mobile wallet. The GCASH Card provides
subscribers 24/7 access to over 9,000 ATMS in the Philippines. For more
information, visit www.globe.com.ph/gcash/.

IDT Corporation
Bill Ulrey, 973-438-3553
invest@idt.net

IDT Corporation’s (NYSE: IDT) CFO, Bill Pereira, and the CEO of its
Genie Energy subsidiary, Claude Pupkin, will present at the Bank of
America Merrill Lynch 2011 Smid Cap Conference in Boston, MA on
Wednesday, May 11, 2011.

The presentation is scheduled to begin at 1:40 p.m. (Eastern) and
continue for 40 minutes. The conference presentation, including written
materials accompanying the presentation, will be available on the
Investor Relations page of IDT’s website, www.idt.net/aboutus/ir,
through Wednesday, May 24, 2011.

About IDT Corporation:

IDT
Corporation (NYSE: IDT) is a consumer services company with
operations primarily in the telecommunications and energy industries. To
learn more, visit the IDT website www.idt.net

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

IDT Corporation today announced that, at a Special Meeting of
Stockholders, its stockholders approved an amendment to its certificate
of incorporation automatically converting and reclassifying each
outstanding share of its Common Stock (NYSE: IDT.C) into one share of
its Class B Common Stock (NYSE: IDT).

In connection with the amendment, the Company also said it will delist
its Common Stock from the New York Stock Exchange (NYSE) and deregister
and suspend its reporting obligations with respect to its Common Stock
under the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

IDT Corporation’s Class B Common Stock will remain listed on the NYSE
under the same “IDT” ticker symbol and will be the Company’s only
publicly traded stock. By virtue of the ownership and NYSE-listing of
its Class B Common Stock, the Company will remain subject to the
reporting obligations under the Exchange Act.

This move simplifies our capital structure,” said Howard Jonas, Chairman
and Chief Executive Officer of IDT. “It is one of a series of steps we
are taking to make IDT a more transparent and easily understood company.”

IDT Corporation has provided written notice to the NYSE of its intention
to delist its Common Stock, and requested that the NYSE submit the
related Form 25 to the Securities and Exchange Commission (SEC). Trading
of the Common Stock on the NYSE will be suspended as of the opening of
trading on April 5, 2011 and the Company expects that the delisting will
become fully effective ten days after the Filing of the Form 25.

Once the delisting has become effective and the Company meets the
criteria for deregistration, it intends to file a Form 15 with the SEC
in order to deregister the Common Stock and suspend its reporting
obligations under the Exchange Act. Deregistration is expected to become
effective 90 days after the filing of the Form 15.

Record holders of Common Stock will receive detailed instructions from
American Stock Transfer & Trust Company, LLC, the exchange agent, on how
to exchange their shares of Common Stock for shares of Class B Common
Stock.

In connection with the reclassification and the previously consummated
exchange offer of Class B Common Stock for Common Stock, Howard Jonas is
exchanging 1,698,000 shares of Class A Common Stock for an equal number
of shares of Class B Common Stock so that his aggregate voting interest
does not increase as a result of those steps.

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 (NYSE:
IDT) is a consumer services company with operations primarily in the
telecommunications and energy industries.

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

IDT Corporation (NYSE: IDT; IDT.C) said today that it will spin-off a
portfolio of patents related primarily to communications over computer
networks, including Voice over Internet Protocol (VoIP), and the
licensing business related to those patents to its shareholders.

IDT shareholders will receive one share in Innovative Communications
Technologies, Inc. (ICTI) which will consist of the patents and the
related licensing business, for every five shares of IDT. The record
date and share distribution dates have not yet been determined. Upon
completion of the spin-off, ICTI is expected to trade on the
over-the-counter market.

“It is likely that many companies are currently using the technologies
covered by these patents,” said Howard Jonas, IDT’s Chairman, Chief
Executive Officer and the founder of Net2Phone, a pioneer in VoIP
telecommunications that is now a wholly owned subsidiary of IDT.

“As an independent publicly traded company, ICTI will be optimally
positioned to license these patents and enforce its intellectual
property rights. This spin-off maximizes the potential to create
substantial value for our shareholders from this IP over the long term,”
Mr. Jonas added.

Completion of the spinoff is subject to final approval by IDT’s board of
directors, confirmation of the tax-free nature of the transaction, as
well as effectiveness of a Form 10 registration statement filed with the
SEC.

ICTI’s Form 10 was filed yesterday with the SEC and includes detailed
information about ICTI, the spinoff and related matters. ICTI’s Form 10
is available through the SEC website www.sec.gov.
ICTI has been assigned Central Index Key (CIK) 1515646.

ICTI will distribute an information statement to stockholders following
completion of the SEC’s review of the Form 10. IDT’s board of directors
reserves the right to amend, modify or abandon the spin-off and the
related transactions at any time prior to the distribution date.

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

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