IDT Corporation (NYSE: IDT; IDT.C), a diversified telecommunications,
energy and consumer services company, said today that the New York Stock
Exchange (NYSE) will continue to conditionally list IDT’s Common Stock
and Class B Common Stock while the Company works to regain compliance
with NYSE listing criteria within the Exchange’s prescribed timeframe.
As part of its effort to attain the NYSE’s minimum share price
requirement, IDT will execute a one-for-three reverse stock split for
each class of its outstanding shares early next year. In addition, IDT’s
Board of Directors has expanded its authorization for stock repurchases
to twenty-five million shares of the Company’s Common Stock and Class B
Common Stock.

In a letter dated December 19, 2008, the NYSE informed IDT that it had
accepted IDT’s business plan submission to regain compliance with the
NYSE’s listing criteria. The continued listing is subject to quarterly
reviews of IDT’s progress toward satisfying the interim goals and
milestones outlined in IDT’s NYSE submission. Failure of IDT to meet
these interim objectives would result in IDT being subject to NYSE
trading suspension. Subject to the outcome of these reviews, the Company
has until April 2009 to meet the NYSE’s minimum share price requirements
and has until March 2010 to meet the NYSE’s average global market
capitalization requirement.

“Our stockholders realize significant benefits from our listing on the
New York Stock Exchange,” said Howard Jonas, IDT’s Chairman, “and we are
working hard to retain it. As we continue to execute on our business
plan, we expect that the market will better reflect IDT’s underlying
value.”

IDT’s Board of Directors approved a one-for-three reverse stock split of
all classes of IDT common stock on December 17, 2008. The reverse split
will apply to all IDT stockholders of record at the close of business on
January 20, 2009.

IDT’s Board of Directors also expanded its stock repurchase
authorization to cover up to an aggregate of twenty-five million shares
of IDT Class B Common Stock and Common Stock. IDT has repurchased 15
million shares since June 2006 under the previous stock repurchase
program, including 7.3 million shares during the first and second
quarters of the current (2009) fiscal year.

“We will continue to repurchase stock at a pace consistent with our
businesses’ working capital requirements and available resources,” said
IDT CEO Jim Courter.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.

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 IDT as
of the date thereof, and IDT assumes no obligation to update any
forward-looking statements or risk factors.

IDT Corporation
Investor Relations:
Bill Ulrey, 973-438-3838

IDT Corporation (NYSE: IDT; IDT.C) said today that aggressive cost
cutting and strong results from its energy supply business significantly
reduced operating losses during the three months ended October 31, 2008.

IDT reported a pretax operating loss of $12.5 million for Q1 2009,
compared to a $35.7 million operating loss in the comparable period a
year ago (excluding a $40 million one time arbitration award in favor of
IDT. Including that award, the gain from operations for Q1 2008 was $4.3
million.)

IDT’s net loss for the quarter was $37.3 million, or $0.51 per share, of
which approximately $21 million reflected realized and unrealized losses
on investments and marketable securities as a result of the recent
global financial and market decline. Net loss in the comparable period a
year ago was $33.2 million (again excluding the $40 million arbitration
award.)

“We have made substantial progress on the restructuring program since it
began earlier this year, and will continue to execute on our turnaround
program to restore the Company to profitability and rebuild our balance
sheet,” said IDT CEO Jim Courter.

OVERALL RESULTS

IDT revenues fell 5.7% year over year (Q1 2009 compared to Q1 2008) from
$468.0 million to $441.4 million. Comparable reductions in direct costs
allowed the Company to maintain its gross margin percentage, which
increased by 1.4% year over year to 23.1%. The Company reduced total
SG&A to $94.9 million, a $20.1 million, or 17.4%, reduction over the
comparable period a year ago. Corporate total SG&A during the quarter
was $11.1 million, a 38.6% reduction compared to the first quarter of
fiscal 2008.

As mentioned above, IDT’s loss from operations was $12.5 million for the
first quarter, compared to a $4.3 million gain during the first quarter
of 2008 (including the $40 million arbitration award), and a loss of
$79.3 million in the preceding quarter. IDT’s net loss for the first
quarter was $37.3 million, or $0.51 per share, compared to net income of
$6.8 million (including the $40 million arbitration award), or $0.09 per
share ($0.08 fully diluted) for the first quarter of 2008, and a net
loss of $86.4 million, or $1.15 per share, in the preceding quarter.

RESULTS BY LINE OF BUSINESS

IDT TELECOM

IDT Telecom carried 5.60 billion minutes of traffic in the first quarter
of fiscal 2009, a decrease of 4.8% year over year, and average revenue
per minute likewise declined by 5.6%. Revenues declined to $353.5
million, down 12.3% year over year and down 6.7% compared with the prior
quarter.

Gross margin percentage division-wide declined to 20.5% in the current
quarter, compared to 21.6% in Q1 of last year, mostly due to changes in
product mix to lower margin wholesale minutes. Gross margin percentage
in Q4 2008 was 23.6%, but excluding a $10.9 million one-time regulatory
accrual reversal recorded in Q4 2008, gross margin percentage was flat
on a sequential basis.

SG&A declined to $63.8 million, down 16.6% year over year, and 9.8%
sequentially, reflecting the impact of lower headcount and compensation
costs, equipment and software maintenance expenses, and facilities
costs. In addition, IDT’s Prepaid Products segment also benefited from
reductions in sales and marketing expenses, and in legal, consulting and
professional fees.

IDT Telecom’s loss from operations during the quarter was $4.1 million.
During the same period a year ago, IDT Telecom reported income from
operations of $31.4 million, which included income from a one time $40
million arbitration award. In the fourth quarter of 2008, IDT Telecom’s
loss from operations was $34.8 million, which included a $35.0 million
restructuring and impairment charge, and the reversal of a regulatory
accrual, as mentioned above.

Wholesale Telecommunications Services

Wholesale minutes of use rose to 3.63 billion minutes, a 1.8% increase
over the same period a year ago, but a 5.1% decline on a sequential
basis. Average revenue per minute declined 6.4% compared to a year ago,
and declined 3.7% sequentially. As a result, wholesale carrier revenues
during the quarter fell to $160.5 million, a 4.7% decline year over
year, and an 8.6% decline sequentially.

Gross margin percentage was 14.7% during the quarter, compared to 15.6%
in the same period a year ago, and 14.8% in Q4 2008. The negative impact
to gross margin from declining revenue and average revenue per minute
was largely mitigated by declines in average termination cost per minute
and the planned reductions in our network connectivity costs as we
continue to reduce excess capacity.

In addition, we continue to migrate portions of our core network from
dedicated capacity time-division multiplexing (TDM) circuits to
burstable Internet protocol circuits, which utilize connectivity
capacity more efficiently and results in lower overall cost. Our U.S.
core network migration towards IP is expected to be mostly completed by
the end of fiscal 2009, and our European core network migration is
expected to be completed by the end of calendar 2009.

Prepaid Products

IDT’s prepaid products business carried 1.97 billion minutes, a 14.8%
decline year over year and a 3.8% drop sequentially, while average
revenue per minute, both sequentially and year over year, remained the
same. As a result of the volume contraction, prepaid products revenues
declined to $175.2 million in the quarter, representing a 16.2%
reduction from a year ago, and a 4.9% sequential decline.

Gross margin percentage was 22.5% during the quarter, compared to 23.0%
in the same period a year ago, and 23.3% sequentially (excluding the
one-time regulatory accrual impact in Q4, as noted above).

Consumer Phone Services

Revenues declined to $17.8 million in the current quarter, a 29.6% drop
compared to the same period a year ago, and a 6.0% sequential decline,
as a result of continued customer attrition. Gross margin percentage
grew to 52.8% in the current quarter, versus 50.5% in the same period a
year ago and 50.0% in Q4 2008, as a result of price increases that we
implemented beginning in the fourth quarter of fiscal 2008.

Our consumer phone services business is in “harvest mode,” wherein we
seek to retain existing customers but do not actively market to new
customers, in order to maximize profits by optimally managing both the
life-cycle of our customer base as well as the costs associated with
operating this business.

The customer base for our bundled, unlimited local and long distance
business was approximately 40,700 as of October 31, 2008 compared to
67,500 as of October 31, 2007. The customer base for our long
distance-only services was approximately 125,300 as of October 31, 2008
compared to 195,500 as of October 31, 2007.

IDT ENERGY

An expanded customer base and favorable market conditions helped IDT
Energy increase revenues and margins while decreasing rates to customers
in Q1 2009 compared to Q4 2008. During the quarter, IDT Energy attracted
new customers at an accelerated pace. Gross meter acquisitions grew by
over 25,000 per month during the quarter versus 14,000 per month during
the same period a year ago. The number of meters as of October 31, 2008
was approximately 392,000, up 26% year over year. Consumption per meter
for electricity was driven higher in Q1 2009 compared to Q4 2008 by
favorable changes in customer demographics as acquisition efforts
targeted small commercial customers with higher consumption histories.
Churn remained level during the quarter, but was slightly higher than
the sequential and year over year quarters.

Revenues for the quarter grew to $67.2 million, up 59.6% (56.5% for
electric, 73.9% for gas) year over year but down 11% from the sequential
quarter as electric revenues fell with the end of the summer cooling
season. The gross margin percentage rose to 30.1% from 12.9% a year ago
and up from 12.2% during the previous quarter. Because IDT Energy relies
heavily on the spot markets for its gas and electric supplies, it was
well positioned to improve its margins as its costs declined during Q1
2009 and competitors did not drop the prices they charged customers as
significantly. SG&A increased to $8.7 million from $3.7 million a year
earlier, a 134.4% increase. SG&A costs were impacted by the expanded
sales program including higher per customer acquisition costs, and
increased purchase of receivable fees charged by the incumbent
utilities. IDT Energy reported $11.1 million in income from operations
during the quarter, compared to $1.7 million in the year ago quarter.

IDT CARMEL

IDT Carmel, IDT’s receivables portfolio management and collection
business, reported revenues of $8.9 million, an 8.4% reduction in
quarterly earnings year over year and a 20.3% decline sequentially as
its debt portfolios continued to age. IDT Carmel acquired no additional
debt during the quarter, and revenues from the current portfolio were
in-line with internal expectations.

Direct cost of revenues during the first quarter increased to $7.0
million, up 9.8% from the comparable period a year ago, as IDT Carmel
increasingly utilized the court system to improve its collections.
Collections utilizing the court system typically entail higher up-front
costs for court filing fees while enhancing long term returns. IDT
Carmel reduced direct costs of revenues 15% sequentially by
consolidating its call centers and trimming its collections workforce.
Gross margin percentage in the current quarter was 21.1%, down from
34.2% in the comparable period a year ago, and down from 26.0% in the
fourth quarter of fiscal 2008. The decreased margins resulted from the
increased direct costs and lower revenue as explained above.

At $1.8 million, total SG&A in the first quarter of fiscal 2009 was
45.1% higher year over year and 23.6% higher sequentially. The increase
resulted principally from increased salaries resulting from IDT Carmel’s
upgraded management team. IDT Carmel’s loss from operations during the
current quarter was $0.7 million, compared to $2.0 million in income
from operations during the first quarter of fiscal 2008.

Going forward, collections utilizing the court system are expected to
enhance future recovery rates and margins, while constraining costs as
more court filing and other legal costs are funded by the outsourcers on
a contingency basis. During the second quarter of fiscal 2009, IDT
Carmel bought out its partner and assumed managerial control over its
joint venture with First Financial Portfolio Management. IDT Carmel
expects improved returns from this portfolio as a result.

IDT CAPITAL

IDT Capital unit’s revenues declined by 11.7% year over year and 18.4%
sequentially to $11.8 million as management continued to shut down or
dispose of unprofitable business initiatives. Nevertheless, revenue of
the Local Media Group – comprised of CTM Media Group, WMET, and IDW
Publishing – now the fourth largest comic book publisher in the United
States – rose to $9.1 million, up 16.5% from a year ago. The end of the
prime tourist season impacted CTM and reduced sequential revenue for the
Local Media Group by 12.5%.

Significant reductions in payroll and commissions at CTM reduced total
SG&A for the Local Media Group by 6.5% year over year and 21.8%
sequentially to $4.5 million.

IDT Capital reported an operating loss of $6.1 million for the current
quarter, a 47.4% improvement over the same period a year ago, and a
74.6% improvement compared to the previous quarter.

Zedge (http://www.zedge.net),
a destination for free mobile content, continues to see strong user
growth. The site is visited by just over 8 million unique visitors per
month, mostly males in the 18 to 35 year old age bracket. The combined
web and mobile traffic now averages over 14 million daily page views and
2 million daily downloads. Additionally, management launched Zedge Pro,
allowing professional users to mobilize and market their content.

Zedge’s revenues are derived from advertising. Zedge’s sales force has
begun to monetize both the web and mobile sites. Zedge, which has a
truly global following, continues to increase in popularity in the
United States, which enhances its revenue potential. The group expects
to be break-even by the end of fiscal 2009.

American Shale Oil, LLC., (AMSO LLC), IDT’s U.S. Oil Shale research and
development subsidiary, began drilling to characterize the resources
within its federal leasehold in western Colorado on November 11, 2008.
Site work is proceeding according to AMSO’s revised plan of operations
approved by the Bureau of Land Management on October 17, 2008. During
the first quarter of fiscal 2009, IDT Alternative Energy’s research and
development expenses and other costs were $0.9 million, compared to $0.8
million in the preceding quarter.

OTHER RECENT DEVELOPMENTS

During the first quarter of fiscal 2009, IDT purchased an aggregate of
4.6 million shares of its Class B Common Stock and Common Stock for $2.9
million under an existing stock buyback program. As of December 5, 2008,
IDT had acquired an additional 2.3 million shares for $1.9 million, and
10.2 million shares remained authorized for repurchase under the current
stock buyback plan.

During the first quarter of fiscal 2009, IDT announced that its
Chairman, Howard Jonas, agreed to receive the next five years’ base
salary in stock in lieu of cash. Mr. Jonas was granted 3.5 million
restricted shares of the Company’s Class B common stock and 2.7 million
restricted shares of the Company’s common stock in lieu of a cash base
salary beginning January 1, 2009 through December 31, 2013. In addition,
IDT’s CEO and Vice Chairman, Jim Courter, was granted 1.1 million
restricted shares of Class B common stock in lieu of a cash base salary
from January 1, 2009 until October 21, 2009

As part of its broader initiative to focus operations on core
businesses, on December 1, 2008, IDT announced an agreement to sell its
European prepaid payment services business to NEOVIA Financial Plc for
$15.05 million. The assets sold include approximately $10 million in
securities held pursuant to regulatory requirements. The proposed
transaction is subject to regulatory approval and the consent of
MasterCard®.

On December 8, 2008, IDT entered into an installment agreement with the
IRS whereby the Company will pay $55 million of the remaining $67
million owed to the IRS by mid-February, 2009, and the remaining balance
by mid-June 2009. Interest and penalties will continue to accrue on any
unpaid amounts. The Company anticipates having sufficient cash available
to meet this obligation.

On September 30, 2008 and October 8, 2008, IDT received notices from the
New York Stock Exchange (NYSE) that it was no longer in compliance with
the market capitalization threshold and the $1.00 minimum price
requirement, respectively, required for continued listing. IDT has
submitted to the NYSE a plan to regain compliance. The plan is currently
in the review process and IDT expects to receive the NYSE’s response by
early January of 2009. If IDT’s final plan is rejected, the NYSE will
commence delisting procedures. If IDT’s final plan is accepted by the
NYSE, the Company will have until April 8, 2009 and March of 2010 to
regain compliance with the minimum stock price and market capitalization
standards respectively. The NYSE will monitor compliance with the plan
and may commence delisting procedures prior to either deadline if IDT
fails to meet the milestones set forth in its plan.

IDT CONFERENCE CALL INFORMATION

Conference call today, December 8, 2008, at 5:00 PM Eastern Time.

From the U.S., please dial 877-407-8033, Passcode IDT.

International callers, please dial 201-689-8033, Passcode IDT.

Replay available for one week at:

1-877-660-6853, Account #: 286; Conference ID #: 305173 for domestic
callers, or

1-201-612-7415, Account #: 286; Conference ID #: 305173 for
international callers.

Webcast of the conference call will be available at the direct link on www.idt.net.
An archived copy of the call will be available at the IDT Website, in
the Investor Relations section under the Presentations heading for at
least six months after the call.

Additional financial and statistical information is available on the
Investor Relations portion of IDT’s website, at https://www.idt.net/about/ir/overview.asp.

ABOUT IDT CORPORATION

IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.

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 retail telecommunications services,
particularly our prepaid calling card business; availability of
termination capacity; financial stability of our customers; our ability
to maintain carrier agreements with foreign carriers; effectiveness of
our marketing and distribution efforts; increased competition,
particularly from regional bell operating companies; our ability to
manage our growth; impact of government regulation; our ability to
obtain telecommunications products or services required for our products
and services; and general economic conditions, particularly in the
telecommunications markets.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.

IDT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
		October 31, 2008				July 31, 2008
		(Unaudited)
		(in thousands)
Assets
Current assets:
Cash and cash equivalents		$	122,401			$	164,886
Restricted cash and cash equivalents			22,110				4,133
Marketable securities			73,414				111,462
Trade accounts receivable, net of allowance for doubtful accounts of $20,726 at October 31, 2008 and $21,589 at July 31, 2008			145,722				178,642
Prepaid expenses			22,801				23,881
Investments—short-term			16,974				22,563
Other current assets			68,291				70,416
Total current assets			471,713				575,983
Property, plant and equipment, net			218,261				229,931
Goodwill			73,982				74,509
Licenses and other intangibles, net			8,353				9,437
Investments—long-term			27,514				40,295
Deferred income tax assets, net			2,106				2,300
Other assets			66,066				70,520
Total assets		$	867,995			$	1,002,975
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable		$	54,088			$	82,976
Accrued expenses			179,989				203,487
Deferred revenue			76,567				88,618
Income taxes payable			106,340				123,000
Capital lease obligations—current portion			8,327				9,316
Notes payable—current portion			2,206				2,115
Other current liabilities			12,789				15,021
Total current liabilities			440,306				524,533
Capital lease obligations—long-term portion			9,940				11,148
Notes payable—long-term portion			99,629				100,150
Other liabilities			17,863				18,957
Total liabilities			567,738				654,788
Minority interests			5,456				5,850
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued			—				—
Common stock, $.01 par value; authorized shares—100,000; 27,725 and 25,075 shares issued and 16,184 and 14,542 shares outstanding at October 31, 2008 and July 31, 2008, respectively			277				251
Class A common stock, $.01 par value; authorized shares—35,000; 9,817 shares issued and outstanding at October 31, 2008 and July 31, 2008			98				98
Class B common stock, $.01 par value; authorized shares—200,000; 67,481 and 63,904 shares issued and 51,225 and 51,249 shares outstanding at October 31, 2008 and July 31, 2008, respectively			675				639
Additional paid-in capital			717,873				716,598
Treasury stock, at cost, consisting of 11,541 and 10,533 shares of common stock and 16,256 and 12,655 shares of Class B common stock at October 31, 2008 and July 31, 2008, respectively			(288,430	)			(285,536	)
Accumulated other comprehensive (loss) income			(1,967	)			6,754
Accumulated deficit			(133,725	)			(96,467	)
Total stockholders’ equity			294,801				342,337
Total liabilities and stockholders’ equity		$	867,995			$	1,002,975

IDT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended October 31,
		2008				2007
		(in thousands, except per share data)
Revenues		$	441,354			$	468,054
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)			339,340				366,464
Selling, general and administrative (i)			94,944				115,008
Depreciation and amortization			14,029				17,819
Bad debt			1,900				2,307
Research and development			1,644				371
Restructuring and severance charges			2,017				1,743
Total costs and expenses			453,874				503,712
Arbitration award income			—				40,000
(Loss) income from operations			(12,520	)			4,342
Interest (expense) income, net			(932	)			2,378
Other (expense) income, net			(21,202	)			6,333
(Loss) income from continuing operations before minority interests and income taxes			(34,654	)			13,053
Minority interests			364				(626	)
Provision for income taxes			(2,968	)			(3,835	)
(Loss) income from continuing operations			(37,258	)			8,592
Discontinued operations, net of tax:
Loss on sale of discontinued operations			—				(1,812	)
Net (loss) income		$	(37,258	)		$	6,780
Earnings per share:
Basic:
(Loss) income from continuing operations		$	(0.51	)		$	0.11
Loss on sale of discontinued operations			—				(0.02	)
Net (loss) income		$	(0.51	)		$	0.09
Weighted-average number of shares used in calculation of basic earnings per share			72,960				79,624
Diluted:
(Loss) income from continuing operations		$	(0.51	)		$	0.10
Loss on sale of discontinued operations			—				(0.02	)
Net (loss) income		$	(0.51	)		$	0.08
Weighted-average number of shares used in calculation of diluted earnings per share			72,960				80,228
(i) Stock-based compensation included in selling, general and administrative expenses		$	1,337			$	1,430

IDT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Three Months Ended October 31,
		2008				2007
		(in thousands)
Net cash used in operating activities		$	(53,029	)		$	(55,397	)
Investing activities
Capital expenditures			(2,891	)			(9,175	)
Collection of notes receivable, net			15				413
Investments and acquisitions			—				(11,947	)
Restricted cash and cash equivalents			(17,977	)			174
Proceeds from redemptions of investments			5,000				—
Proceeds from sale of building			—				5,388
Purchase of debt portfolios			—				(36,871	)
Principal collections and proceeds on resale of debt portfolios			3,607				6,927
Proceeds from sales and maturities of marketable securities			52,312				419,912
Purchases of marketable securities			(19,890	)			(293,891	)
Net cash provided by investing activities			20,176				80,930
Financing activities
Distributions to minority shareholders of subsidiaries			(639	)			(1,088	)
Proceeds from sale of stock of subsidiary			987				—
Repayments of capital lease obligations			(2,259	)			(4,538	)
Repayments of borrowings			(507	)			(681	)
Repurchases of common stock and Class B common stock			(2,894	)			(38,190	)
Net cash used in financing activities			(5,312	)			(44,497	)
Effect of exchange rate changes on cash and cash equivalents			(4,320	)			1,790
Net decrease in cash and cash equivalents			(42,485	)			(17,174	)
Cash and cash equivalents, beginning of period			164,886				151,404
Cash and cash equivalents, end of period		$	122,401			$	134,230
Supplemental schedule of non-cash investing activities
Purchases of property, plant and equipment through capital lease obligations		$	95			$	234

SELECTED CONSOLIDATED FINANCIAL DATA
THREE MONTHS ENDED OCTOBER 31, 2009
Figures may not foot or cross-foot due to rounding
		Total IDT					Wholesale				Calling Cards				CPS				IDT				IDT			IDT
(In thousands)		Corporation					Telecom				Telecom				Telecom				Carmel				Energy			Capital				Corporate
STATEMENT OF OPERATIONS DATA
Revenues		$ 441,354					$	160,517			$	175,243			$	17,779			$	8,852			$	67,160		$	11,803			$	–
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)		339,340						136,872				135,785				8,389				6,984				46,967			4,344				–
Selling, general and administrative		94,944						19,401				39,907				4,496				1,794				8,703			9,592				11,050
Bad debt		1,900						528				1,721				(1,044	)			243				340			112				–
Research and development		1,644						–				849				–				–				–			795				–
Depreciation and amortization		14,029						2,890				8,346				325				152				30			1,952				334
Restructuring and severance charges		2,017						(22	)			(722	)			(36	)			389				15			1,065				1,328
Total costs and expenses		453,874						159,669				185,886				12,130				9,562				56,055			17,860				12,712
(Loss) income from operations		(12,520			)		$	848			$	(10,643	)		$	5,649			$	(710	)		$	11,105		$	(6,057	)		$	(12,712	)
Interest expense, net		(932			)
Other expense, net		(21,202			)
Loss before minority interests and income taxes		(34,654			)
Minority interests		364
Provision for income taxes		(2,968			)
Net (loss)		$ (37,258			)

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

The Lawrence Livermore National Laboratory (LLNL) and American Shale
Oil, LLC (AMSO), a subsidiary of IDT Corporation (NYSE: IDT; IDT.C),
announced today that they have entered into a technical cooperation
agreement to develop carbon sequestration technologies for in-ground
shale-oil production processes.

Specifically, LLNL will partner with AMSO to study how to use depleted
underground oil shale retorts to permanently store carbon dioxide
generated during the oil shale extraction process. AMSO will provide
technical expertise and oil shale core samples from its federal lease
site.

Oil shale can be converted to oil by subjecting it to high temperatures
and high pressures —by speeding up the geologic clock so to speak. In
early demonstration projects, LLNL researchers used explosives to
fracture the vast oil-shale reserves in the western U.S. so that the oil
could be processed in place, thus providing an important alternative to
imported oil. That effort evolved in the early 1980s into a surface
oil-shale retorting process that used hot oil-shale particles as the
heat carrier. The research also produced a model of how oil is formed in
nature. Today, this model aids the exploration efforts of nearly every
major oil company in the world.

The shale that remains in the ground after the oil is extracted could be
used as a storage place for the carbon dioxide that is created during
the extraction process.

“We’re glad to be working with the impressive staff and capabilities of
AMSO to help tackle the key environmental and technical challenges
facing domestic oil shale production,” said Julio Friedmann, program
leader of LLNL’s carbon management program. “We see this partnership in
line with our mission in energy and environmental security for the
nation.”

AMSO holds a Research Development and Demonstration (RD&D) lease from
the U.S. Bureau of Land Management for a 160-acre parcel of federal land
in northwest Colorado’s oil-shale rich Piceance Basin. Upon
demonstration of an economically viable, environmentally acceptable
extraction process, AMSO has a preference right to acquire a 5,120-acre
commercial lease.

After the oil is extracted from shale, the depleted retort of heated,
rubblized underground shale may be particularly suitable for capturing
carbon dioxide, according to Dr. Alan K. Burnham, AMSO’s Chief
Technology Officer. “Together with the Lawrence Livermore National
Laboratory, we will explore several interesting approaches to protect
the environment by sequestering CO₂ through mineralization in
retorted oil shale.”

“Lawrence Livermore National Lab is a nationally recognized leader in
scientific research on clean energy production”, said IDT Chairman and
AMSO CEO Howard Jonas. “I’m delighted that the Lab will be working with
AMSO to develop carbon sequestration approaches for oil shale
production. Americans deserve affordable fuels developed using the best
available environmental protection technologies.”

Founded in 1952, Lawrence Livermore National Laboratory is a national
security laboratory, with a mission to ensure national security and
apply science and technology to the important issues of our time.
Lawrence Livermore National Laboratory is managed by Lawrence Livermore
National Security, LLC for the U.S. Department of Energy’s National
Nuclear Security Administration.

About AMSO

American Shale Oil, LLC (AMSO), (www.amso.net)
a subsidiary of IDT Corporation (www.idt.net),
is one of three companies holding a U.S. Bureau of Land Management oil
shale research, development and demonstration lease of government-owned
lands in the Piceance Basin in northwest Colorado.

AMSO’s mission is to develop its proprietary technology into a
commercially viable and environmentally sound method of producing
commercial quantities of shale oil by using in-situ extraction
processes. AMSO has developed a multi-phase plan from the initial pilot
stage through commercial conversion of the BLM lease.

About IDT Corporation

IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.

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 heading “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 retail telecommunications services, particularly
our prepaid calling card business; availability of termination capacity;
financial stability of our customers; our ability to maintain carrier
agreements with foreign carriers; effectiveness of our marketing and
distribution efforts; increased competition, particularly from regional
bell operating companies; our ability to manage our growth; impact of
government regulation; our ability to obtain telecommunications products
or services required for our products and services; and general economic
conditions, particularly in the telecommunications markets.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.

IDT
Investor Relations
Bill Ulrey, 973-438-3838

IDT Corporation (NYSE: IDT; IDT.C) today announced an agreement to sell
its European prepaid payment services business to NEOVIA Financial Plc
(“NEOVIA”) (LSE: NEO) for $15.05 million. NEOVIA is an independent,
global provider of online payments.

Under the terms of the agreement, NEOVIA will acquire IDT Financial
Services Holdings Limited and other assets which together provide
prepaid MasterCard® products in the UK market under the “Prime Card”
brand. The purchased assets include approximately $10 million in
securities held pursuant to regulatory requirements.

The proposed transaction is subject to regulatory approval of the
Gibraltar Financial Services Commission and consent of MasterCard®.

Howard Jonas, Chairman of IDT Corporation, said that the acquisition
will benefit consumers. “NEOVIA’s considerable resources and expertise
will expand the range of financial services available to IDTFS customers
while nicely complementing NEOVIA’s existing capabilities.”

“This sale is part of our broader initiative to focus the company’s
operations on our core businesses,” said Jim Courter, CEO of IDT
Corporation. “We continue to sell and close down businesses that,
however promising, do not meet our strategic objectives.”

IDT Corporation

IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.

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 heading “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 retail telecommunications services, particularly
our prepaid calling card business; availability of termination capacity;
financial stability of our customers; our ability to maintain carrier
agreements with foreign carriers; effectiveness of our marketing and
distribution efforts; increased competition, particularly from regional
bell operating companies; our ability to manage our growth; impact of
government regulation; our ability to obtain telecommunications products
or services required for our products and services; and general economic
conditions, particularly in the telecommunications markets.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.

IDT, Investor Relations
Bill Ulrey, 973-438-3838

IDT Corporation (NYSE: IDT; IDT.C) said that its first quarter of fiscal
year 2009 conference call to discuss results for the three-month period
ended October 31, 2008 has been scheduled for Monday, December 8th, 2008
at 5:00 PM (Eastern).

An earnings release will be available prior to the call.

Participants may join the conference call two ways–via teleconference or
webcast. The webcast may be accessed by visiting the IDT Corporation
website at www.idt.net,
or by using the hyperlink: http://www.investorcalendar.com/IC/CEPage.asp?ID=138411
.

Participants will need Windows Media software to listen to the streaming
feed of the conference call. Please allow at least 15 minutes to
download any necessary audio software prior to the call.

To participate via telephone, the dial-in number for domestic callers is
(877) 407-8033, and for international callers is 201-689-8033. Please
dial in approximately 10 minutes prior to the start of the call.

An archived copy of the call will be available on the Investor Relations
page of the IDT website, at: https://www.idt.net/about/ir/overview.asp
under “Presentations”; or via a replay, for domestic callers at
1-877-660-6853, and for international callers at 1-201-612-7415, both
using Conference ID number Account number: 286 and Conference ID number
305173. The teleconference replay will be available for one week after
the call.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.

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 IDT as
of the date thereof, and IDT assumes no obligation to update any
forward-looking statements or risk factors.

Investor Relations:
IDT Corporation
Bill Ulrey, 973-438-3838

American Shale Oil, LLC (AMSO), a subsidiary of IDT Corporation (NYSE:
IDT, IDT.C), announced today that it has entered into a technical
cooperation agreement with oilfield services company Schlumberger
Technology Corporation (Schlumberger).

AMSO and Schlumberger will jointly explore improved methods to
characterize oil shale resources within AMSO‘s
federal lease site.

AMSO holds a Research Development and Demonstration (RD&D) lease from
the U.S. Bureau of Land Management for a 160-acre parcel of federal land
in northwestern Colorado‘s oil-shale rich
Piceance Basin. Upon demonstration of an economically viable,
environmentally acceptable extraction process, AMSO has a preference
right to acquire a 5,120-acre commercial lease.

“We are extremely pleased to be working with
Schlumberger, the world‘s premier oil services
company, to better understand our resources. This partnership advances
IDT‘s larger effort to help America win our
energy independence. We are working for the day when American consumers
can count on adequate supplies of domestically produced, affordable fuel
for our cars, trucks and home furnaces,“ said
Howard Jonas, IDT‘s Chairman and AMSO‘s
CEO.

Under the agreement, AMSO will supply Schlumberger‘s
research subsidiary, Schlumberger-Doll Research, with drilled core
samples from AMSO‘s lease site. Schlumberger
will analyze the samples to develop improved methods to estimate rock
properties.

“USGS geologic studies estimate that AMSO‘s
commercial lease preference right land could contain ten billion barrels
of shale oil, approximately half of which is expected to be recoverable.
Jointly with Schlumberger, we will comprehensively characterize the
details of the oil shale at our site,“ said
Dr. Alan K. Burnham, AMSO‘s Chief Technology
Officer. “This will help AMSO design the most
environmentally friendly and effective extraction process.“

About AMSO

American Shale Oil, LLC (AMSO), a subsidiary of IDT Corporation, is one
of three companies holding a U.S. Bureau of Land Management oil shale
research, development and demonstration lease of government-owned lands
in the Piceance Basin in northwest Colorado.

AMSO‘s mission is to develop its proprietary
technology into a commercially viable and environmentally sound method
of producing commercial quantities of shale oil by using in-situ
extraction processes. AMSO has developed a multi-phase plan from the
initial pilot stage through commercial conversion of the BLM lease.

IDT Corporation

IDT
Corporation (www.idt.net)
is a multinational holding company with subsidiaries spanning several
industries including: IDT Telecom,
which provides telecommunications services to consumers and businesses,
including prepaid and rechargeable calling cards, local, long distance
and wireless phone services, wholesale carrier services, and a range of
voice over Internet protocol (VoIP) communications services; IDT
Energy (www.idtenergy.com),
which operates an Energy Services Company (ESCO) in New York State; IDT
Carmel, which manages receivables portfolios and collections; Zedge
(www.zedge.net),
which provides a web-based, worldwide destination for free,
user-generated mobile content distribution and sharing; American
Shale Oil Corporation (AMSO) (www.amso.net),
which manages IDT’s U.S. oil shale research and development initiative,
and IDT Capital, whose portfolio
of companies includes IDT Spectrum
(www.idtspectrum.com),
CTM Media Group (www.ctmmediagroup.com),
and IDW Publishing (www.idwpublishing.com).
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 heading “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 retail telecommunications services,
particularly our prepaid calling card business; availability of
termination capacity; financial stability of our customers; our ability
to maintain carrier agreements with foreign carriers; effectiveness of
our marketing and distribution efforts; increased competition,
particularly from regional bell operating companies; our ability to
manage our growth; competitiveness of our Winstar subsidiary; impact of
government regulation; our ability to obtain telecommunications products
or services required for our products and services; and general economic
conditions, particularly in the telecommunications markets.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.

IDT, Investor Relations
Bill Ulrey, 973-438-3838
OR
AMSO,
LLC
Gil Nielsen, 610-704-6622

IDT Corporation (NYSE: IDT; IDT.C) filed its Form 10-K with the
Securities and Exchange Commission yesterday, October 14, 2008.

Form 10-K includes an annual report of IDT’s businesses, audited
financial statements for the 2008 fiscal year, a discussion by
management regarding financial results for the 2008 fiscal year, as well
as other items.

Copies of IDT’s Form 10-K can be requested through the Investor
Relations section of our website: www.idt.net/ir,
under the “Request Info“
tab. IDT Corporation will be distributing the Form 10-K to its
stockholders free of charge in November 2008.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a multinational holding company with subsidiaries spanning several
industries including: IDT Telecom,
which provides telecommunications services to consumers and businesses,
including prepaid and rechargeable calling cards, a range of voice over
Internet protocol (VoIP) communications services, wholesale carrier
services and local, long distance and wireless phone services; IDT
Energy (www.idtenergy.com),
which operates an Energy Services Company (ESCO) in New York State; IDT
Carmel, which manages receivables portfolios and performs debt
collection services; Zedge (www.zedge.net),
which provides a web-based, worldwide destination for free,
user-generated mobile content distribution and sharing; American
Shale Oil Corporation (AMSO) (www.amso.net),
which manages IDT’s U.S. oil shale initiative, and IDT
Capital, whose portfolio of companies includes IDT
Spectrum (www.idtspectrum.com),
CTM Media Group (www.ctmmediagroup.com),
and IDW Publishing (www.idwpublishing.com).
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 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 IDT as of the date thereof, and IDT
assumes no obligation to update any forward-looking statements or risk
factors.

IDT Corporation
Bill Ulrey, 973-438-3838
wulrey@corp.idt.net

IDT Corporation (NYSE: IDT, IDT.C) announces operating results for its
fourth quarter and fiscal 2008 year July 31, 2008.

• Q4 revenues: $480.0 million, down 2.6% year-over-year.
• Q4 net loss: ($86.4) million, versus net loss of ($112.4) million one
  year ago.
• Q4 loss from operations ($79.3) million, compared with ($123.7)
  million in the year-ago period.
• Q4 net loss per share ($1.15), versus net loss per share of ($1.38)
  one year ago.
• Fiscal 2008 revenues: $1,878.0 million, versus $2,012.7 million in
  fiscal 2007.
• Fiscal 2008 net loss: ($224.3) million, versus net income of $58.6
  million in fiscal 2007, of which ($4.9) million and $198.1 million,
  respectively, were due to discontinued operations.
• Fiscal 2008 loss from operations ($198.3) million, compared with
  ($172.7) million from operations in fiscal 2007.
• Fiscal 2008 net loss per share ($2.95) and loss per share from
  continuing operations ($2.88), versus net income per share of $0.71
  and loss per share from continuing operations of ($1.70) in fiscal
  2007.
• Cash, cash equivalents, marketable securities, and investments totaled
  $343.3 million; $82.9 million of the cash, cash equivalents and
  marketable securities was restricted as of the end of the fiscal year.

SUMMARY OF OPERATING RESULTS

The following table summarizes the operating performance of IDT‘s
continuing businesses:

$ millions		Revenues															Income (Loss) from Operations
		Fiscal’08			Fiscal’07			Q4’08			Q3’08			Q4’07			Fiscal’08			Fiscal’07			Q4’08			Q3’08			Q4’07
Wholesale Telecom		$1,062.6			$1,220.6			$270.0			$248.1			$301.8			$26.7			($19.8	)		($6.8	)		($10.4	)		($8.7	)
Prepaid Products		778.4			971.8			183.9			182.8			228.7			(86.2	)		(109.0	)		(30.7	)		(24.5	)		(72.3	)
Consumer Phone Service		88.0			148.8			18.9			20.8			30.0			19.3			65.6			2.5			7.6			9.8
Inter-segment		(400.5	)		(575.5	)		(94.3	)		(90.6	)		(128.6	)		–			–			–			–			–
IDT Telecom Total		1,528.5			1,765.7			378.5			361.0			431.9			(40.1	)		(63.2	)		(35.0	)		(27.3	)		(71.3	)
IDT Energy		248.9			190.8			75.5			66.3			45.3			6.0			11.4			1.6			0.9			0.5
IDT Capital		55.0			50.8			14.8			13.5			13.5			(63.8	)		(26.6	)		(22.7	)		(17.0	)		(10.5	)
IDT Carmel		45.7			5.4			11.1			12.5			1.8			(25.3	)		(10.7	)		(16.9	)		1.9			(5.2	)
Corporate		–			–			–			–			–			(75.3	)		(83.7	)		(6.3	)		(28.9	)		(37.1	)
Total IDT		$1,878.0			$2,012.7			$480.0			$453.2			$492.6			($198.3	)		($172.7	)		($79.3	)		($70.5	)		($123.7	)

Columns in table may not add accurately due to rounding.

In Q1 2008 we changed our accounting for IDT Carmel operations, as
described below.This change accounts for the majority of the
changes in revenues from IDT Carmel operations as compared to the
year-ago period.

RECENT DEVELOPMENTS

On October 3, 2008, we announced a CEO succession plan, an extended
employment and compensation arrangement with Howard Jonas, an agreement
by Jim Courter, Vice Chairman/CEO to accept his base salary in IDT stock
in lieu of salary and the retention of Jefferies & Company, Inc. to act
as financial advisor to the Company. Mr. Jonas has agreed to become the
Company’s Chief Executive Officer upon the retirement of Jim Courter.
Mr. Jonas will enter into a five-year employment agreement with IDT,
providing for the payment of his base compensation in shares of Common
Stock for the five-year period beginning on January 1, 2009.

The New York Stock Exchange has notified us that we are out of
compliance with the Exchange‘s listing
standards by virtue of IDT‘s market
capitalization and also with the Exchange‘s
one dollar minimum price. Under the rules of the Exchange, we have 45
days from receipt of the Notification on the market capitalization
non-compliance to file a plan with the Exchange demonstrating our
ability to meet the listing requirements. We must be in compliance with
the market capitalization standard within 18 months and with the share
price minimum within 6 months.

On September 4, 2008, we announced a new management team at IDT Carmel
Holdings, Inc., headed by President and COO Mark Meisenbacher. Mr.
Meisenbacher is a twenty year industry veteran who previously served as
COO of Axiant.

As we continue our restructuring, we recognize restructuring and
impairment charges. In the fourth quarter of fiscal 2008 we recognized
$45.5 million in consolidated restructuring and impairment charges,
including $15.7 million primarily for severance due to reductions in our
workforce and $29.8 million in write-downs of goodwill and fixed assets,
primarily in our Prepaid Products – Rechargeable and Wholesale telecom
business units. The $29.8 million of write-downs were recorded primarily
as a result of our annual assessment in accordance with FAS 142, where
the expected discounted future cash flows of those businesses did not
support the carrying value of the assets. Accordingly we recorded an
impairment charge as required by FAS 142. In the fourth quarter of
fiscal 2008, IDT Telecom recorded $10.4 million of the restructuring
charges and $24.6 million of the impairment charges. In fiscal 2008 we
recognized $66.2 million in consolidated restructuring and impairment
charges, of which $49.2 million related to IDT Telecom and $7.4 million
was incurred by Corporate, mostly due to workforce reductions.

In June and August 2008 we received notices from the IRS assessing tax
of approximately $75 million for the period ending July 31, 2001,
approximately $1.0 million for adjustments carried forward to fiscal
years 2005 and 2006 and applicable interest of $39.5 million. In July
2008 we paid $10.0 million of the amount noted as a good faith payment.
We have initiated discussion with the IRS regarding the timing of
payment, however, we cannot assure you that we will be able to conclude
any arrangement with the IRS and the balance could become due and
payable in 30 days.

RESULTS OF IDT TELECOM OPERATIONS
Telecom Line of Business Detail
$ millions, except %		Q1 07		Q2 07			Q3 07		Q4 07		FY 07			Q1 08			Q2 08			Q3 08		Q4 08			FY 08
REVENUES
TOTAL		471.2		447.0			415.6		431.9		1,765.7			402.6			386.3			361.0		378.5			1,528.5
Prepaid Products		260.8		251.6			230.7		228.7		971.8			208.9			202.9			182.8		183.9			778.4
CC- United States		215.9		204.9			180.0		175.1		776.0			159.5			161.5			139.2		138.1			598.2
CC- Europe		25.9		25.9			25.4		27.5		104.7			23.4			24.1			22.2		23.6			93.3
CC- Rest of World		7.2		7.8			10.1		7.4		32.5			8.1			7.9			7.6		7.5			31.1
Other		11.8		12.9			15.2		18.8		58.7			17.8			9.4			13.8		14.7			55.8
Wholesale		315.1		314.6			289.2		301.8		1,220.6			280.1			264.4			248.1		270.0			1,062.6
Intersegment Revenues		158.5		153.5			134.9		128.6		575.5			111.6			103.9			90.6		94.3			400.5
Wholesale -Third Party		156.6		161.1			154.3		173.1		645.1			168.5			160.5			157.4		175.7			662.1
Consumer Phone Services		53.8		34.3			30.7		30.0		148.8			25.3			23.0			20.8		18.9			88.0
United States		35.7		33.4			29.5		28.4		127.1			23.5			21.1			19.0		16.8			80.5
Europe		17.5		–			–		–		17.5			–			–			–		–			–
Other		0.6		0.8			1.2		1.6		4.2			1.7			1.9			1.8		2.1			7.5
GROSS PROFIT
TOTAL		107.7		86.2			80.6		75.1		349.6			86.9			84.8			78.7		89.1			339.5
Prepaid Products		50.4		34.4			37.3		32.2		154.3			38.5			38.2			33.4		45.7			155.8
Wholesale		36.3		36.5			30.6		27.6		130.9			35.7			36.0			31.8		34.0			137.5
Consumer Phone Services		21.0		15.3			12.8		15.4		64.5			12.7			10.6			13.6		9.4			46.2
GROSS MARGIN
TOTAL		22.8%		19.3%			19.4%		17.4%		19.8%			21.6%			22.0%			21.8%		23.5%			22.2%
Prepaid Products		19.3%		13.7%			16.2%		14.1%		15.9%			18.4%			18.8%			18.3%		24.9%			20.0%
Wholesale		11.5%		11.6%			10.6%		9.1%		10.7%			12.8%			13.6%			12.8%		12.6%			12.9%
Consumer Phone Services		39.0%		44.8%			41.6%		51.3%		43.3%			50.2%			46.2%			65.2%		49.6%			52.6%
SG&A including bad debt expense
TOTAL		83.8		81.3			80.5		113.0		358.5			78.4			78.0			77.1		75.0			308.5
Prepaid Products		41.2		45.5			45.8		86.2		218.8			46.8			46.0			42.4		44.4			179.7
Wholesale		24.1		26.4			26.4		22.4		99.3			24.6			25.8			29.8		24.9			105.1
Consumer Phone Services		18.4		9.3			8.3		4.4		40.4			7.0			6.2			4.9		5.7			23.7
United States		8.3		7.7			6.5		2.8		25.3			5.6			4.7			3.4		4.3			18.0
Europe		8.8		–			–		–		8.8			–			–			–		–			–
Other		1.3		1.7			1.8		1.6		6.3			1.4			1.5			1.4		1.4			5.7

IDT Telecom carried 23.1 billion minutes of traffic for third-party
customers in fiscal 2008, a decrease of 1.1% compared with fiscal 2007.
Wholesale segment minutes increased 19.4%, and wholesale minutes carried
for third-party customers set company records both for the year and for
the fourth quarter. However, this increase was offset by a 23.1% decline
in retail minutes. For fiscal 2008, IDT Telecom‘s
traffic mix of minutes carried was 62.6% wholesale minutes and 37.4%
retail minutes. For the fourth quarter of fiscal 2008, IDT Telecom
carried 5.88 billion minutes for third-party customers, a 5.8%
sequential increase, but a decrease of 0.3% versus the year-ago quarter.

For the year, IDT Telecom revenues declined 13.4%. Overall revenue per
minute declined 9.9%. Revenue per minute from our Prepaid Products
segment increased 3.5%, while revenue per minute from external customers
in our Wholesale segment declined 14.0%. Revenues from our Consumer
Phone Services segment declined 40.9%. In the fourth quarter of fiscal
2008, IDT Telecom revenues declined 12.4% compared to the year-ago
result, and increased 4.9% sequentially. Overall revenue per minute in
Q4 2008 declined 9.5% versus the fiscal 2007 fourth quarter, and
declined 0.1% sequentially. Consumer phone services revenue in Q4 2008
declined 37.0% compared with the year-ago period, and 9.0% sequentially.

For IDT Telecom overall, fiscal 2008 gross profit dollars were 2.9%
lower than in fiscal 2007. This decrease is due primarily to the
continuing revenue decline in our Consumer Phone Services segment, which
we have been strategically harvesting. Gross profit dollars for fiscal
2008 increased 5% in our Wholesale segment, primarily as a result of the
decrease in direct cost of revenues due to continued reductions in
connectivity costs. In our Prepaid Products segment, we delivered a
slight increase in gross profit dollars for the year, due primarily to a
$16.7 million reversal in fiscal 2008 of accrued regulatory fees as a
result of the completion of an audit by USAC of our U.S. calling card
business for calendar years 2005 and 2006, of which $10.9 million was
reversed in Q4 2008. Without such reversal, gross profit dollars for
fiscal 2008 would have decreased 9.8%, due primarily to the revenue
decline in our U.S. calling card operations.

Selling, general and administrative (“SG&A“)
expenses including bad debt expense for fiscal 2008 were 13.9% lower
than those of fiscal 2007 as a result of reductions in compensation
costs, sales and marketing expenses, consulting fees, and facilities
costs. Most of the decrease occurred in our Prepaid Products segment, in
which we had an accrual in Q4 2007 of $24.0 million relating to our
previously announced settlement of litigation with Aerotel, as well as a
$3.1 million reversal of a previously recorded legal accrual which was
adjusted for in Q4 2008, partially offset by an additional $6 million
accrual for the Aerotel matter that we recorded in Q4 2008. As a
percentage of revenue, SG&A expenses including bad debt expense were
basically flat year-over-year at 20.2% in fiscal 2008 and 20.3% in
fiscal 2007. For the fourth quarter, SG&A expenses including bad debt
expense decreased 33.6% versus the year-ago period, and 2.7%
sequentially.

Depreciation and amortization expense for IDT Telecom fell from $71.2
million in fiscal 2007 to $57.3 million in fiscal 2008 due to assets
becoming fully depreciated with limited new capital spending in the last
two years. In Q4 2008, depreciation and amortization expense was $13.0
million, versus $17.2 million in the year-ago quarter.

Wholesale Telecommunications Services

In fiscal 2008, revenues from third-party customers increased 2.6%.
Blended gross profit margins (including margins on minutes for internal
customers) were 12.9% in fiscal 2008, compared with 10.7% in fiscal
2007. SG&A expenses including bad debt expense increased 5.8%, mostly
due to compensation costs associated with the $40 million Altice One
arbitration award, which was recognized in Q1. Operating income for
fiscal 2008, which includes the arbitration award, increased by $46.5
million, to $26.7 million.

During the fourth quarter of fiscal 2008, we carried a record number of
minutes for third-party customers. Revenues from third-party customers
in Q4 2008 increased 1.5% year-over-year and 11.6% sequentially and also
set company records. Gross profit dollars of $34.0 million in Q4 2008
represented an increase of 23.4% year-over-year and 7.0% sequentially.
Gross profit margins were 12.6% in Q4 2008, compared with 12.8% in the
previous quarter.

Prepaid Products

In fiscal 2008, our Prepaid Products segment terminated 8.65 billion
minutes of traffic, compared with 11.24 billion minutes in fiscal 2007.
Revenues declined 19.9% compared with fiscal 2007, mostly due to
weakness in our U.S. and European calling card sales, partially offset
by slight increases in Asia. In the fourth quarter of fiscal 2008, our
Prepaid Products segment terminated 2.05 billion minutes of traffic, an
18.2% decrease from the year-ago amount and a 0.8% increase
sequentially. A sequential increase was expected because our fourth
quarter had 2.2% more days than our third quarter, and one of them was
Mother‘s Day, the heaviest calling day of the
year. Revenues decreased 19.6% versus the year-ago quarter, and
increased 0.6% sequentially.

RESULTS OF IDT ENERGY OPERATIONS
$ millions, except %		Q1 07				Q2 07				Q3 07				Q4 07				FY 2007				Q1 08				Q2 08				Q3 08				Q4 08				FY 2008
REVENUES		$	36.2			$	51.9			$57.3				$45.3				$	190.7			$	42.1			$65.1				$	66.3			$	75.5			$	248.9
GROSS PROFIT			8.4				7.1			6.4				4.6					26.5				5.4			6.8					6.4				9.2				27.8
GROSS MARGIN %			23.2	%			13.7	%		11.2		%		10.1		%			13.9	%			12.9	%		10.4		%			9.7	%			12.2	%			11.2	%
SG&A, including bad debt			3.5				3.5			4.0				4.0					14.9				3.8			4.7					5.5				7.6				21.6
ENDING METERS SERVED (000)			258				271			284				300					300				312			318					343				376				376

IDT Energy continues to expand its customer base opportunistically in
New York with the goal of acquiring profitable customers in low-risk
markets; more specifically in regions where receivables are guaranteed
under purchase of receivables (POR) programs, billing is handled by the
utility, and commodity procurement can be effectuated on a real-time
market basis. IDT Energy also regularly monitors other deregulated
markets to determine if they are ripe for entry, and will initiate the
licensing process in any selected location, should deregulated
conditions develop favorably.

In fiscal 2008, IDT Energy‘s base of meters
served increased 25.3% compared to year-end fiscal 2007. Three quarters
of the net meter additions occurred in the second half of our fiscal
year when public utility energy prices were increasing sharply. Revenue
increased 30.5% in fiscal 2008 to $248.9 million, due to both increased
consumption generated by the larger customer base and to increases in
both electricity and gas rates. Gross profit dollars increased 5.0% in
fiscal 2008, although gross margins fell from 13.9% in fiscal 2007 to
11.2% in fiscal 2008. SG&A expenses including bad debt expense increased
44.6%, from 7.8% of IDT Energy‘s revenues to
8.7%, mostly due to the incremental customer acquisition costs in the
second half of the year.

In the fourth quarter of fiscal 2008 IDT Energy added 33,000 net meters,
the greatest quarterly increase in net meters in its history. Revenues
in Q4 2008 increased 66.4% year-over-year and 13.8% sequentially. Gross
profit dollars increased 102.3% year-over-year and 43.6% sequentially.
Gross margins increased 210 basis points year-over-year and 250 basis
points sequentially. SG&A expenses including bad debt expense in Q4 2008
increased 90.9% year-over-year and 37.1% sequentially, mostly due to the
expenses of adding new customers, but also due to increases in utility
fees associated with the increased customer base.

RESULTS OF IDT CAPITAL OPERATIONS
$ millions, except %		Q1 07			Q2 07			Q3 07			Q4 07			FY 2007			Q1 08			Q2 08			Q3 08			Q4 08			FY 2008
REVENUES
TOTAL		$13.0			$12.8			$11.5			$13.6			$50.9			$13.6			$13.0			$13.5			$14.8			$55.0
Local Media		6.0			5.4			4.9			6.7			23.0			6.0			5.2			5.4			7.5			24.2
Internet Mobile Group		–			0.1			0.1			1.5			1.7			2.3			2.4			2.6			3.4			10.7
Alternative Energy		–			–			–			–			–			–			–			–			–			–
All Other		7.0			7.3			6.5			5.4			26.2			5.4			5.4			5.4			3.9			20.1
GROSS PROFIT
TOTAL		6.8			8.7			5.0			7.4			27.9			6.0			5.8			5.1			9.3			26.2
Local Media		4.3			3.9			3.1			4.9			16.2			4.4			3.4			3.7			5.3			16.8
Internet Mobile Group		0.0			0.1			0.1			0.6			0.8			0.9			1.0			1.1			1.9			4.9
Alternative Energy		–			–			–			–			–			–			–			–			–			–
All Other		2.5			4.7			1.8			1.9			10.9			0.7			1.4			0.3			2.2			4.6
GROSS MARGIN %
TOTAL		53.0	%		68.1	%		43.1	%		54.2	%		54.9	%		43.9	%		44.7	%		37.5	%		62.9	%		47.7	%
Local Media		72.6	%		72.6	%		62.6	%		73.3	%		70.7	%		72.7	%		66.2	%		67.6	%		70.2	%		69.4	%
Internet Mobile Group		–			100.0	%		83.5	%		37.9	%		43.2	%		39.5	%		42.1	%		41.3	%		55.6	%		45.7	%
Alternative Energy		–			–			–			–			–			–			–			–			–			–
All Other,		36.2	%		64.5	%		27.7	%		34.7	%		41.6	%		13.4	%		25.3	%		5.4	%		57.3	%		23.1	%
SG&A, including bad debt
TOTAL		8.9			10.5			11.8			14.3			45.5			14.3			17.6			13.6			13.0			58.4
Local Media		3.6			4.3			4.1			5.0			17.0			4.6			5.2			4.7			5.2			19.6
Internet Mobile Group		0.3			1.0			0.6			1.5			3.4			1.9			2.6			2.4			1.9			8.8
Alternative Energy		–			–			–			–			–			–			–			–			–			–
All Other		5.0			5.3			7.1			7.8			25.2			7.8			9.8			6.4			5.9			29.9

IDT Capital consists of the IDT Local Media businesses (principally the
CTM brochure distribution operation and other advertising-based new
product initiatives focused on small to medium sized businesses, plus
our WMET Washington, D.C. based AM radio station), the Internet Mobile
Group (Zedge—a web based, worldwide
destination for free, user-generated mobile content distribution and
sharing—and our majority holding in IDW
Publishing, an established leader in the publication of comic books and
graphic novels, and its newly formed children‘s
book imprint), and Alternative Energy which consists of AMSO, our U.S.
oil shale initiative and other alternative energy initiatives. IDT
Capital also contains some of our intellectual property as well as other
smaller businesses, some of which are early stage initiatives, which are
summarized in the table above and in our discussions as “All
Other.“

In fiscal 2008, IDT Capital reported revenue of $55.0 million, an 8.1%
gain versus the fiscal 2007 amount. The businesses in IDT Capital with
the largest revenue in fiscal 2008 were IDT Local Media, at $24.2
million, and the All Other lines of business, at $20.1 million. The
Internet Mobile Group (IMG) accounted for the largest revenue gain in
fiscal 2008, an increase of $9.1 million to $10.7 million.

Loss from operations was ($63.8) million in fiscal 2008 compared to
($26.6) million in fiscal 2007. Alternative Energy accounted for $7.0
million of the additional loss from operations, primarily due to its
research and development expense. Also contributing to the loss from
operations increase in fiscal 2008 were losses on the disposal of
businesses of ($8.8) million and ($0.8) million from our Israel call
center and our aviation related toys and collectibles business,
respectively, both of which were transferred to their respective
managements in Q4 2008. The exclusion of the operating results from
these two businesses would have eliminated $20.8 million from IDT Capital‘s
loss from operations in fiscal 2008.

Local Media

For fiscal 2008 Local Media reported a revenue increase of 4.7%. Fourth
quarter revenue increases were 11.9% and 38.1% versus the year-ago
quarter and sequentially, respectively. Local Media‘s
operating loss of ($8.0) million for fiscal 2008 represented a 258.2%
increase versus fiscal 2007. In the fourth quarter of fiscal 2008, WMET
recorded an impairment charge of $3.5 million related to certain of its
fixed assets. The majority of the remainder of the loss ($3.8 million of
the $4.5 million total) occurred in the second and third quarters of the
year, and was primarily attributable to lower revenue in these quarters
and increased spending on SG&A devoted to the Local Media New Products
Group.

CTM Brochure Display, which accounts for the majority of the Local Media
revenues, was profitable on an operating basis. It has been successfully
upselling other relevant products to its existing customers, such as
printing services and advertising in its owned tourism guides. In
addition, various restructurings have resulted in a reduction in selling
costs while not adversely affecting sales growth. CTM continues to test
new products. Similarly, the New Products Group within Local Media has
been testing new media products, such as search engine marketing, with
small to medium sized businesses.

Internet Mobile Group

For fiscal 2008, the Internet Mobile Group‘s
revenue increased from $1.7 million to $10.7 million, principally
because of the December 2006 acquisition of Zedge and the June 2007
acquisition of IDW Publishing. Because of the timing of these
acquisitions, year-over-year comparisons are not meaningful for fiscal
2008. Revenue growth was particularly strong (30.3% sequentially) in the
fourth quarter of fiscal 2008. For the fiscal year the Group‘s
operating loss was ($5.5) million, primarily due to expenditures to
develop Zedge. In the fourth quarter of fiscal 2008 the Group‘s
operating loss was reduced 39.0% sequentially to ($0.9) million.

Zedge (http://www.zedge.net),
a destination for free mobile content, released its 3.0 web site design
in April 2008. This upgrade to the website makes it significantly easier
for users to find the content that they want, connect with one another,
and create and share content. The site has over 11 million registered
users, mostly male in the 18 to 35 year old age bracket. Members upload
over 6,000 items of content per day. The content library, which exceeds
2.1 million items, consists of ringtones, wallpaper, videos, games and
themes. Zedge, which has a truly global following, has become one of the
most popular sites for mobile content in the U.K. In the fourth quarter,
OpenZedge was launched on the mobile phone and on the website. OpenZedge
reduced the requirement for registration, expanding the audience
available to download Zedge‘s content. Zedge
also initiated a number of content partnerships designed to drive
additional traffic to the site and build the content library. Currently,
close to 2 million downloads are performed on a daily basis. There are
close to 6 million unique users per month visiting Zedge on the web and
mobile, and over 13 million page views per day. The first phase of a
localization project, which uses algorithms to match the content
displayed to the country from which the user is logging on, was
implemented for many of our major countries. Zedge‘s
revenues are derived from advertising and it will continue to build
advertising revenue by introducing direct revenue streams on the site
through its sales force. The group expects to be break-even by the end
of fiscal 2009.

IDW Publishing (http://www.idwpublishing.com),
which currently accounts for the majority of the revenue in the IDT
Internet Mobile Group, operated at a modest profit throughout fiscal
2008. IDW publishes 35 to 40 graphic novel titles a month and licenses
properties for use by film entertainment. The company plans to maintain
its publishing pace in fiscal 2009, and to set up some properties for TV
or feature development. Some IDW highlights in fiscal 2008 were:

• The first major movie based on an IDW property was released in October
  2007. 30 Days of Night was the #1 movie in its opening weekend.
• IDW was again named ‘Publisher of the Year’ in 2008, and was also
  named one of the Top 100 Global Licensees by License Magazine.
• IDW launched its children’s book division, Worthwhile Books.
• Major comic book titles in 2008 included Angel, Transformers, Igor,
  Mummy, Doctor Who, Ghost Whisperer, and Speed Racer.
• IDW sold the entertainment rights for Locke & Key to
  Dimension Films.
• IDW secured the comic book rights to GI Joe and Terminator 2,
  both of which have major movies scheduled for 2009.

Alternative Energy

The planning phase for the RD&D (Research, Development and
Demonstration) project for Alternative Energy is continuing and we
expect to initiate field work later this year, after the Bureau of Land
Management approves the plan of operations. We will begin with
characterizing the site to better understand the oil shale resource as
well as the hydrology. Our total expenditures and their timing will
depend on a number of factors, including the early results of our R&D.
Should we decide not to fund further research after benchmarks have been
achieved, our equity stake will be reduced. Our Q4 2008 funding was $0.7
million.

RESULTS OF IDT CARMEL OPERATIONS
$ millions, except %		Q1 07			Q2 07			Q3 07				Q4 07				FY2007			Q1 08			Q2 08				Q3 08				Q4 08				FY2008
REVENUES			$1.9			$0.8			$1.0			$1.8				$5.5				$9.7			$12.4			$12.5				$	11.1			$	45.6
GROSS PROFIT			0.5			(0.9	)		(2.3	)		(3.6		)		(6.3		)		3.3			5.7			3.8					2.9				15.6
GROSS MARGIN %			26.9	%		-113.7	%		-241.3	%		-202.9		%		-116.7		%		34.2	%		46.0	%		30.4		%			26.0	%			34.3	%
SG&A			0.7			1.0			1.0			1.5				4.2				1.2			1.7			1.8					1.5				6.1
BAD DEBT EXPENSE			–			–			–			–				–				–			16.1			–					15.6				31.7
RECEIVABLES UNDER MANAGEMENT			3.7			14.3			34.3			51.1				51.1				81.1			90.3			82.0					63.1				63.1
NET EXPENDITURES TO PURCHASE RECEIVABLES			6.0			13.0			28.0			31.0				79.0				37.0			30.0			0.0					0.0				67.0

In fiscal 2008 IDT Carmel‘s reported results
were impacted by two major factors:

• A change in the method of accounting from Cost Recovery to Effective
  Yield for recognizing revenue in our purchased debt portfolios
  business. Under Effective Yield, revenue is recognized on a calculated
  internal rate of return based on our cash flow expectations for each
  portfolio. Under Cost Recovery, no revenue is recognized until the
  cost of the portfolio is completely recovered or sold. We implemented
  the change effective Q1 2008, and it was the primary reason for the
  increase in revenues from $5.5 million in fiscal 2007 to $45.6 million
  in fiscal 2008.
• Bad debt expense of $31.7 million recorded in Q2 and Q4 2008, due to
  actual cash collections that were below expectations and decreases in
  estimates of future cash collections. This bad debt expense reflects
  in part the particularly challenging collection environment as a
  result of factors in the U.S. economy that IDT Carmel cannot control,
  which are likely to impact consumers‘
  willingness and ability to repay their debts to IDT Carmel.

We are undertaking steps to improve cash flow, including:

(1)	recruiting an extremely experienced management team, headed by President and COO Mark Meisenbacher, announced on September 4th,
(2)	the consolidation of all collection activities to two centers based in Minnesota,
(3)	technology implementations, including a dialer, to improve the effectiveness of in-house collectors,
(4)	sales of underperforming portfolios which are being investigated, and
(5)	implementation of advanced skip tracing and location services to increase collections which are in process.

IDT Carmel‘s loss from operations increased
from ($10.7) million to ($25.3) million in the year to year comparison.
Q4 2008 loss from operations was ($16.9) million, down from income from
operations of $1.9 million in Q3 2008.

IDT CONFERENCE CALL INFORMATION

Conference call today, October 6, 2008, at 5:00 PM Eastern Time.

From the U.S., please dial 877-407-8033, Passcode IDT. International callers, please dial 201-689-8033, Passcode IDT. Replay available for one week at: 1-877-660-6853, Account #: 286; Conference ID #: 297144 for domestic callers, or 1-201-612-7415, Account #: 286; Conference ID #: 297144 for international callers. Webcast of the conference call will be available at the direct link on www.idt.net. An archived copy of the call will be available at the IDT Website, in the Investor Relations section under the Presentations heading for at least six months after the call. Additional financial and statistical information is available on the Investor Relations portion of IDT‘s website, at https://www.idt.net/about/ir/overview.asp.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a multinational holding company with subsidiaries spanning several
industries including: IDT Telecom,
which provides telecommunications services to consumers and businesses,
including prepaid and rechargeable calling cards, a range of voice over
Internet protocol (VoIP) communications services, wholesale carrier
services and local, long distance and wireless phone services; IDT
Energy (www.idtenergy.com),
which operates an Energy Services Company (ESCO) in New York State; IDT
Carmel, which manages receivables portfolios and performs debt
collection services; Zedge (www.zedge.net),
which provides a web-based, worldwide destination for free,
user-generated mobile content distribution and sharing; American
Shale Oil Corporation (AMSO) (www.amso.net),
which manages IDT’s U.S. oil shale initiative, and IDT
Capital, whose portfolio of companies includes IDT
Spectrum (www.idtspectrum.com),
CTM Media Group (www.ctmmediagroup.com),
and IDW Publishing (www.idwpublishing.com).
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 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 IDT as of the date thereof, and IDT
assumes no obligation to update any forward-looking statements or risk
factors.

IDT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended July 31 (in thousands, except per share data)		Unaudited 2008					2007				2006
REVENUES		$	1,877,990			$	2,012,739			$	2,226,422
COSTS AND EXPENSES:
Direct cost of revenues (exclusive of depreciation and amortization)			1,468,784				1,615,047				1,779,980
Selling, general and administrative (i)			445,979				483,483				525,823
Depreciation and amortization			68,747				80,011				87,422
Bad debt			45,503				12,943				18,521
Research and development			11,567				5,232				11,817
Restructuring and impairment charges			66,187				33,404				23,646
TOTAL COSTS AND EXPENSES			2,106,767				2,230,120				2,447,209
Arbitration award			40,000				—				—
(Loss) gain on sale of businesses			(9,569	)			44,671				—
Loss from operations			(198,346	)			(172,710	)			(220,787	)
Interest income, net			4,766				18,069				9,416
Other (expense) income, net			(17,309	)			28,980				7,284
Loss from continuing operations before minority interests and income taxes			(210,889	)			(125,661	)			(204,087	)
Minority interests			1,370				(10,180	)			(16,177	)
Provision for income taxes			(9,923	)			(3,605	)			(2,576	)
Loss from continuing operations			(219,442	)			(139,446	)			(222,840	)
Discontinued operations, net of tax:
Loss from discontinued operations			—				(7,165	)			(35,883	)
(Loss) gain on sale of discontinued operations			(4,888	)			205,235				80,069
Total discontinued operations			(4,888	)			198,070				44,186
NET (LOSS) INCOME		$	(224,330	)		$	58,624			$	(178,654	)
Earnings per share:
Basic and diluted:
Loss from continuing operations		$	(2.88	)		$	(1.70	)		$	(2.32	)
Total discontinued operations			(0.07	)			2.41				0.46
Net (loss) income		$	(2.95	)		$	0.71			$	(1.86	)
Weighted-average number of shares used in calculation of basic and diluted earnings per share:			76,171				82,165				96,028
(i) Stock based compensation included in selling, general and administrative expense		$	4,407			$	7,726			$	21,521

IDT CORPORATION
CONSOLIDATED BALANCE SHEETS
July 31 (in thousands)		Unaudited 2008				2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	169,019			$	153,845
Marketable securities			111,462				388,140
Trade accounts receivable, net of allowance for doubtful accounts of $21,589 and $19,654 at July 31, 2008 and 2007, respectively			178,642				164,802
Prepaid expenses			23,881				28,920
Short-term investments			22,563				—
Other current assets			70,416				60,452
TOTAL CURRENT ASSETS			575,983				796,159
Property, plant and equipment, net			229,931				251,318
Goodwill			74,509				101,515
Licenses and other intangibles, net			9,437				13,824
Investments—long-term			40,295				119,052
Deferred income tax assets, net			2,300				—
Other assets			70,520				78,465
TOTAL ASSETS		$	1,002,975			$	1,360,333
LIABILITIES AND STOCKHOLDERS‘ EQUITY
CURRENT LIABILITIES:
Trade accounts payable		$	82,976			$	47,467
Accrued expenses			203,487				288,017
Deferred revenue			88,618				112,757
Income taxes payable			123,000				—
Capital lease obligations—current portion			9,316				21,049
Notes payable—current portion			2,115				8,095
Other current liabilities			15,021				17,598
TOTAL CURRENT LIABILITIES			524,533				494,983
Deferred income tax liabilities, net			—				105,049
Capital lease obligations—long-term portion			11,148				23,401
Notes payable—long-term portion			100,150				82,847
Other liabilities			18,957				12,928
TOTAL LIABILITIES			654,788				719,208
Minority interests			5,850				10,963
Commitments and contingencies
STOCKHOLDERS‘ EQUITY:
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued			—				—
Common stock, $.01 par value; authorized shares—100,000; 25,075 and 25,075 shares issued and 14,542 and 14,996 shares outstanding at July 31, 2008 and 2007, respectively			251				251
Class A common stock, $.01 par value; authorized shares—35,000; 9,817 shares issued and outstanding at July 31, 2008 and 2007			98				98
Class B common stock, $.01 par value; authorized shares—200,000; 63,904 and 63,261 shares issued and 51,249 and 56,043 shares outstanding at July 31, 2008 and 2007, respectively			639				633
Additional paid-in capital			716,598				711,103
Treasury stock, at cost, consisting of 10,533 and 10,079 shares of common stock and 12,655 and 7,218 shares of Class B common stock at July 31, 2008 and 2007, respectively			(285,536	)			(240,355	)
Accumulated other comprehensive income			6,754				10,750
Retained earnings (deficit)			(96,467	)			147,682
TOTAL STOCKHOLDERS‘ EQUITY			342,337				630,162
TOTAL LIABILITIES AND STOCKHOLDERS‘ EQUITY		$	1,002,975			$	1,360,333

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended July 31 (in thousands)		Unaudited 2008				2007				2006
OPERATING ACTIVITIES
Net (loss) income		$	(224,330	)		$	58,624			$	(178,654	)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Net loss (income) from discontinued operations			4,888				(198,070	)			(44,186	)
Depreciation and amortization			68,747				80,011				87,422
Restructuring and impairment charges			39,140				10,933				13,121
Minority interests			(1,370	)			10,180				16,177
Deferred income taxes			5,832				(1,991	)			(5,648	)
Write-off of acquired research and development assets			6,672				—				—
Provision for doubtful accounts receivable			13,996				13,307				18,544
Provision for losses on purchased debt portfolios			31,652				—				—
Net realized losses (gains) from sales of marketable securities and investments			17,365				(4,909	)			(845	)
Gain on sale of building			(4,146	)			—				—
Loss (gain) on sale of businesses			9,569				(44,671	)			—
Interest in the equity of investments			6,078				(22,416	)			—
Stock-based compensation			4,407				7,726				21,521
Change in assets and liabilities, net of effects from acquisitions/dispositions of businesses:
Trade accounts receivable			(35,730	)			3,090				(47,295	)
Other current assets and other assets			7,832				2,487				(2,950	)
Trade accounts payable, accrued expenses, other current liabilities and other liabilities			(59,673	)			4,142				17,489
Income taxes payable			(10,000	)			—				—
Deferred revenue			(24,139	)			(20,548	)			(7,400	)
Net cash used in operating activities			(143,210	)			(102,105	)			(112,704	)
INVESTING ACTIVITIES
Capital expenditures			(20,286	)			(36,290	)			(53,523	)
Purchase of building			(24,778	)			—				—
Collection (issuance) of notes receivable, net			15,003				(64	)			836
Investments and acquisitions, net of cash acquired			(21,862	)			(49,159	)			(103,351	)
Proceeds from sales of investments			70,105				—				—
Proceeds from sales of building			4,872				—				—
Proceeds from sales of discontinued operations, net of cash sold and transaction costs			—				260,591				129,308
Proceeds from sale of U.K.-based Toucan business, net of transaction costs			—				38,379				—
Purchase of debt portfolios			(67,332	)			(78,443	)			—
Principal collections and proceeds on resale of debt portfolios			23,733				28,070				—
Proceeds from sales and maturities of marketable securities			695,714				1,684,344				1,760,705
Purchases of marketable securities			(442,945	)			(1,671,510	)			(1,446,237	)
Net cash provided by investing activities			232,224				175,918				287,738
FINANCING ACTIVITIES
Dividends paid			—				(30,783	)			—
Distributions to minority shareholders of subsidiaries			(4,087	)			(11,367	)			(25,420	)
Proceeds from exercise of stock options			94				5,761				2,894
Proceeds from employee stock purchase plan			1,173				2,284				2,347
Proceeds from borrowings			—				—				11,000
Proceeds from sale lease back transactions on capital leases			—				13,319				—
Repayments of capital lease obligations			(25,296	)			(20,586	)			(21,580	)
Repayments of borrowings			(3,922	)			(3,588	)			(21,751	)
Repurchase of stock options in tender offer			—				—				(15,829	)
Repurchases of common stock and Class B common stock			(45,354	)			(22,522	)			(73,514	)
Net cash used in financing activities			(77,392	)			(67,482	)			(141,853	)
DISCONTINUED OPERATIONS
Net cash used in operating activities			—				(20,261	)			(130,339	)
Net cash provided by investing activities			—				3,847				12,078
Net cash provided by financing activities			—				7,536				59,152
Net cash used in discontinued operations			—				(8,878	)			(59,109	)
Effect of exchange rate changes on cash and cash equivalents			3,552				5,200				5,161
Net increase (decrease) in cash and cash equivalents			15,174				2,653				(20,767	)
Cash and cash equivalents (including discontinued operations) at beginning of year			153,845				151,192				171,959
Cash and cash equivalents (including discontinued operations) at end of year			169,019				153,845				151,192
Less cash and cash equivalents of discontinued operations at end of year			—				—				(32,083	)
Cash and cash equivalents (excluding discontinued operations) at end of year		$	169,019			$	153,845			$	119,109
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest		$	9,711			$	9,512			$	10,148
Cash payments made for income taxes		$	13,090			$	1,507			$	6,729
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Assumption of mortgage payable in connection with the purchase of the Company‘s headquarters office building		$	26,851			$	—			$	—
Receipt of the Company‘s Class B common stock and IDT Telecom shares as part of the proceeds from the sale of IDT Entertainment		$	—			$	226,649			$	—
Receipt of marketable securities as part of the proceeds from the sale of Toucan		$	—			$	7,851			$	—
Purchases of property, plant and equipment through capital lease obligations		$	398			$	293			$	3,856
Issuance of liabilities for acquisitions		$	—			$	1,300			$	—

SELECTED CONSOLIDATED FINANCIAL DATA
THREE MONTHS ENDED JULY 31, 2008
		Total IDT				Inter-				Wholesale				Prepaid Products				CPS			IDT				IDT			IDT
(In thousands)		Corporation				Segment				Telecom				Telecom				Telecom			Carmel				Energy			Capital				Corporate
STATEMENT OF OPERATIONS DATA
Revenues		$	479,951			$	(94,311	)		$	270,026			$	183,911			$	18,912		$	11,109			$	75,456		$	14,849			$	–
Costs and expenses:
Direct cost of revenues (exclusive of
depreciation and amortization)			369,396				(94,311	)			236,019				138,186				9,540			8,219				66,239			5,504				–
Selling, general and administrative			95,208				–				23,921				42,188				4,512			1,451				7,152			12,298				3,687
Research and development			1,759				–				–				1,063				–			–				–			696				–
Bad debt			21,131				–				990				2,214				1,192			15,600				440			693				–
Depreciation and amortization			16,720				–				6,965				5,699				367			141				30			2,764				754
Restructuring and impairment charges			45,468				–				8,951				25,240				781			2,631				8			5,987				1,870
Total costs and expenses			549,682				(94,311	)			276,846				214,590				16,392			28,042				73,869			27,942				6,311
Loss on sale of businesses			(9,569	)			–				–				–				–			–				–			(9,569	)			–
(Loss) income from operations			(79,300	)		$	–			$	(6,820	)		$	(30,678	)		$	2,520		$	(16,934	)		$	1,587		$	(22,663	)		$	(6,311	)
Interest expense, net			(534	)
Other expense, net			(7,676	)
Loss from continuing operations before
minority interests and income taxes			(87,510	)
Minority interests			2,351
Provision for income taxes			( 912	)
Loss from continuing operations			(86,071	)
Loss on sale of discontinued operations			(359	)
Net loss		$	(86,430	)

Investor Relations:
IDT Corporation
Bill
Ulrey, 973-438-3838