IDT Corporation (NYSE: IDT, IDT.C) announces operating results for the second quarter of fiscal 2008, the three months ended January 31, 2008.

• Q2 revenues: $476.7 million, down 7.0% year-over-year.
• Q2 net loss: ($62.5) million, versus net loss of ($27.0) million one year ago.
• Q2 pretax loss from continuing operations was ($57.3) million, compared with ($24.5) million in the year-ago period.
• Q2 net loss per share of ($0.83), versus net loss per share of ($0.33) one year ago.
• Cash, cash equivalents, marketable securities, and investments totaled $410.6 million as of the end of the second fiscal quarter.

SUMMARY OF OPERATING RESULTS

Because IDT Carmel, our receivables portfolio management and collection business, has become a larger contributor to overall IDT Corporation results, this quarter we have begun to report it as a separate business segment instead of as part of IDT Capital, as in prior period reports. Prior period results have been reclassified to conform to the current presentation. The following table summarizes the operating performance of IDT‘s continuing businesses:

$ millions	Revenues						Income (Loss) from Operations
	Q208		Q108		Q207		Q208		Q108		Q207
Wholesale Telecom	$264.4		$280.1		$314.6		$1.9		$42.1		($1.3)
Prepaid Products	202.9		208.9		251.6		(15.1)		(15.9)		(19.5)
Consumer Phone Services	23.0		25.3		34.3		4.0		5.2		8.4
Inter-segment	(103.9)		(111.6)		(153.5)		–		–		–
IDT Telecom Total	386.3		402.6		447.0		(9.2)		31.4		(12.4)
IDT Energy	65.1		42.1		51.9		1.9		1.7		3.6
IDT Capital	13.0		13.7		12.8		(14.4)		(9.7)		(2.8)
IDT Carmel	12.4		9.7		0.8		(12.2)		2.0		(2.0)
Corporate	–		–		–		(19.0)		(21.0)		(13.7)
Total IDT	$476.7		$468.1		$512.5		($52.9)		$4.3		($27.3)

Columns in table may not add due to rounding.

Income from operations in our Wholesale Telecom segment in Q1 2008 includes a $40.0 million arbitration award.

In Fiscal 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 February 15^th we announced the formation of a new IDT division, the American Shale Oil Corporation (AMSO) to manage IDT’s U.S. oil shale ventures, including the company’s initial foray – its 75% stake in E.G.L. Oil Shale LLC, which was announced on January 22^nd.

On February 7^th, we closed on the purchase of our headquarters building at 520 Broad St., Newark NJ, in exchange for $23.1 million in cash and the assumption of the remainder of the existing mortgage on the building in the amount of $26.9 million, for a total purchase price of $50 million.

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
REVENUES
TOTAL	471.2		447.0		415.6		431.9		1765.7		402.6		386.3
Prepaid Products	260.8		251.6		230.7		228.7		971.8		208.9		202.9
CC- United States	215.9		204.9		180.0		175.1		776.0		159.5		161.5
CC- Europe	25.9		25.9		25.4		27.5		104.7		23.4		24.1
CC- Rest of World	7.2		7.8		10.1		7.4		32.5		8.1		7.9
Other	11.8		12.9		15.2		18.8		58.7		17.8		9.4
Wholesale	315.1		314.6		289.2		301.8		1220.6		280.1		264.4
Intersegment Revenues	158.5		153.5		134.9		128.6		575.5		111.6		103.9
Wholesale -Third Party	156.6		161.1		154.3		173.1		645.1		168.5		160.5
Consumer Phone Services	53.8		34.3		30.7		30.0		148.8		25.3		23.0
United States	35.7		33.4		29.5		28.4		127.1		23.5		21.1
Europe	17.5		–		–		–		17.5		–		–
Other	0.6		0.8		1.2		1.6		4.2		1.7		1.9
GROSS PROFIT
TOTAL	107.7		86.2		80.6		75.1		349.6		86.9		84.8
Prepaid Products	50.4		34.4		37.3		32.2		154.3		38.5		38.2
Wholesale	36.3		36.5		30.6		27.6		130.9		35.7		36.0
Consumer Phone Services	21.0		15.3		12.8		15.4		64.5		12.7		10.6
GROSS MARGIN
TOTAL	22.8%		19.3%		19.4%		17.4%		19.8%		21.6%		22.0%
Prepaid Products	19.3%		13.7%		16.2%		14.1%		15.9%		18.4%		18.8%
Wholesale	11.5%		11.6%		10.6%		9.1%		10.7%		12.8%		13.6%
Consumer Phone Services	39.0%		44.8%		41.6%		51.3%		43.3%		50.2%		46.2%
SG&A including bad debt
TOTAL	87.5		82.2		80.6		113.4		363.7		78.7		78.6
Prepaid Products	41.2		45.5		45.8		86.6		219.1		47.2		46.6
Calling Cards	31.8		35.0		33.5		73.5		173.8		31.9		36.5
Other	9.4		10.5		12.4		13.1		45.4		15.3		10.0
Wholesale	27.9		27.4		26.5		22.4		104.2		24.6		25.8
Consumer Phone Services	18.4		9.3		8.3		4.4		40.4		7.0		6.2
United States	8.3		7.7		6.5		2.8		25.3		5.6		4.7
Europe	8.8		–		–		–		8.8		–		–
Other	1.3		1.7		1.8		1.6		6.3		1.4		1.5

IDT Telecom carried 5.82 billion minutes of traffic for third-party customers in the second quarter of fiscal 2008, a decrease of 1.2% sequentially, and 2.7% versus Q2 2007. Revenues declined 4.0% sequentially and 13.6% compared with the 2007 second quarter. IDT Telecom‘s ($9.2) million loss from operations is an improvement relative to the year-ago loss of ($12.4) million. The current quarter operating loss is 6.9% higher than that of Q1 2008, excluding the effects of a $40 million arbitration award recorded in Q1. Despite the sharply lower revenues, the year-over-year improvement in operating performance is due to:

• Continued reductions in connectivity costs,
• Reductions in total SG&A expenses, including non-cash compensation, and
• Lower depreciation expense, due to the sharply lower levels of capex spending.

For IDT Telecom overall, gross profit dollars were 1.6% lower than the year-ago figure and 2.3% lower than the immediately preceding quarter. SG&A expenses fell 4.5% versus one year-ago, and 0.2% sequentially. Depreciation and amortization expense for IDT Telecom fell from $17.9 million in the year-ago period and $15.6 million in the first quarter of 2008 to $14.4 million in the current quarter.

Wholesale Telecommunications Services

Wholesale revenues from third-party customers during the quarter decreased 0.4% year-over-year and 4.8% sequentially. Inter-segment sales continued to decline, primarily as a result of the continued decline in minutes sold by our U.S. calling card business. Total Wholesale segment revenues declined 5.6% sequentially and 16.0% from the second quarter one year ago. In the second quarter, Wholesale carried 5.7 billion minutes, a 2.3% and 1.1% decline compared to the minutes volume delivered in the second quarter one year ago and in Q1 2008, respectively. Gross profit dollars of $36.0 million in Q2 2008 declined 1.3% year-over-year and increased 0.8% sequentially. Gross margins of 13.6% were stronger than past quarters. Wholesale SG&A expenses decreased 6.0% year-over-year and increased 4.80% sequentially. Also, depreciation and amortization expense declined 19.2% year-over-year and 7.9% sequentially, leading to a $3.1 million improvement in the operating loss versus the year-ago figure and a $235,000 operating profit decline (excluding the effect of the arbitration award) sequentially.

Prepaid Products

Prepaid Products revenues in the second quarter decreased 2.9% versus the first quarter of fiscal 2008 and decreased 19.4% from the second quarter one year ago. In the second quarter, our global calling card business terminated 2.2 billion minutes, as compared to 2.3 billion minutes in the first quarter of fiscal 2008 and 3.0 billion minutes in 2007‘s second quarter.

Gross profit margins of 18.8% in the second quarter of fiscal 2008 for Prepaid Products were stronger than past quarters, in part due to the boost from seasonally-strong gift cards. SG&A expenses for Prepaid Products increased 2.4% versus the prior year dollar amount and decreased 1.3% versus Q1 2008. SG&A expenses as a percentage of Prepaid Products revenues were 23.0% in Q2 2008, versus 18.1% in the year-ago quarter and 22.6% in Q1 2008. Also, depreciation and amortization expense declined 20.2% year-over-year and 7.9% sequentially, leading to a $4.4 million reduction in operating loss versus the year-ago figure and a $854,000 reduction sequentially

Consumer Phone Services

Consumer Phone Services revenues for the second quarter were 8.9% lower than those recorded in the first quarter of fiscal 2008, and 32.8% lower than last year‘s comparable quarter due to continued attrition of customers. Our strategy is to continue to manage this business for cash-flow maximization.

RESULTS OF IDT ENERGY OPERATIONS
$ millions, except %	Q1 07		Q2 07		Q3 07		Q4 07		FY 2007		Q1 08		Q2 08
REVENUES	$36.2		$51.9		$57.3		$45.3		$190.7		$42.1		$65.1
GROSS PROFIT	8.4		7.1		6.4		4.6		26.5		5.4		6.8
GROSS MARGIN %	23.2%		13.7%		11.2%		10.1%		13.9%		12.9%		10.4%
SG&A including bad debt	3.5		3.5		4.0		4.0		15.0		3.8		4.7
ENDING METERS SERVED (000)	258		271		284		300		300		312		318

IDT Energy increased its base of meters served 17.3% in Q2 2008 compared to the year-ago period, and 1.9% versus the Q1 2008 total. Plans for further growth are centered on adding incremental customers in several upstate NY regions, and IDT Energy is considering expanding into additional states.

Revenues increased 25.3% compared with the year-ago period, driven by a 25% increase in gas meters, a 12% increase in electric meters, higher gas consumption due to colder weather versus the year ago period, and price increases of about 10% for gas and 9% for electricity.

Gross margins in IDT Energy for the quarter were 10.4%, compared with 13.7% in the year-ago period, mostly due to atypically strong gross margins for gas in the year-ago period. Operating profits for the quarter fell to $1.9 million from $3.6 million in the year-ago period due to decreases in the gross profits and increases in SG&A. IDT Energy plans to continue to target margins per unit that will achieve profitability, and will take advantage of opportunities to maximize the margin per unit as they arise.

RESULTS OF IDT CAPITAL OPERATIONS

$ millions, except %	Q1 07		Q2 07		Q3 07		Q4 07		FY 2007		Q1 08		Q2 08
REVENUES
TOTAL	$13.0		$12.8		$11.5		$13.6		$50.9		$13.6		$13.0
Local Media	6.0		5.4		4.9		6.7		23.0		6.0		5.2
Internet Mobile Group	–		0.1		0.1		1.5		1.7		2.2		2.4
Capital- Other	7.0		7.3		6.5		5.4		26.2		5.4		5.4
GROSS PROFIT
TOTAL	6.8		8.7		5.0		7.4		27.9		6.0		5.8
Local Media	4.3		3.9		3.1		4.9		16.2		4.4		3.4
Internet Mobile Group	–		0.1		0.1		0.6		0.8		0.9		1.0
Capital- Other	2.5		4.7		1.8		1.9		10.9		0.7		1.4
GROSS MARGIN %
TOTAL	53.0%		68.1%		43.1%		54.2%		54.9%		43.9%		44.7%
Local Media, GM %	72.6%		72.6%		62.6%		73.3%		70.7%		72.7%		66.2%
Internet Mobile Group, GM%	–		100.0%		83.5%		37.9%		43.2%		39.5%		42.1%
Capital- Other, GM %	36.2%		64.5%		27.7%		34.7%		41.6%		13.4%		25.3%
SG&A including bad debt
TOTAL	8.9		10.5		11.8		14.3		45.5		14.3		17.6
Local Media	3.6		4.3		4.1		5.0		17.0		4.6		5.2
Internet Mobile Group	0.3		1.0		0.6		1.5		3.4		1.9		2.6
Capital- Other	5.0		5.3		7.1		7.8		25.2		7.8		9.8

IDT Capital consists of the IDT Local Media businesses (principally the CTM brochure distribution operation and our WMET Washington, D.C. based AM radio station), the Internet Mobile Group (Zedge—a website providing a creation and distribution platform for mobile content—and IDW, an established leader in the publication of comic books and graphic novels) and other smaller businesses. In Q2 2008 IDT Capital reported a revenue increase of 1.6% year-over-year and a 5.2% decrease sequentially. IDT Capital reported an operating loss of ($14.4) million in the second quarter of fiscal 2008, versus a loss of ($2.9) million in the year-ago quarter and ($9.7) million in Q1 2008. Most of the increased losses versus Q1 results were due to increased losses in Local Media businesses and from an increase in legal fees in “Other Capital“. Most of the decline compared with the year-ago period was attributable to expenses included under “Other Capital,“ primarily legal fees.

Local Media‘s revenues and margins were adversely impacted by the closure of Broadway shows, reducing the need for brochures describing the shows until they reopened.

The Internet Mobile Group has grown dramatically since last year. In terms of usage and brand name, Zedge currently attracts approximately 4 million unique visitors per month. At this point, most of the Internet Mobile Group‘s revenues are generated by IDW. The SG&A increases are primarily due to the hiring of key personnel in both Zedge and IDW to continue their growth.

Both Zedge and IDW reported significant developments in this quarter:

• Zedge traffic continues to grow, with month over month sequential traffic growth of over 10% in Q2 2008. At the end of this quarter, Zedge had approximately 7.35 million registered users from 220 countries, and is now adding in excess of 120,000 registrants per week. Monthly page views have more than doubled over the last year to exceed 300 million page views (month of January). Zedge, as mentioned earlier, reached a milestone of 4 million unique visitors in the month of January, and is now distributing 26 million pieces of mobile content per month, including ringtones, wallpapers and themes.
• In Q2 2008, Zedge began to lay the groundwork for expectations of significant growth over the coming summer months. This includes a full re-architecture of its back-end technology, as well as the beginnings of the site redesign, scheduled to launch in the upcoming Q3. Additionally, Zedge began to make a concerted effort to attract the independent artist community and expects to make an even bigger push in Q4 2008.
• The feature film version of IDW Publishing’s graphic novel, 30 Days of Night, topped the box office when it premiered in October 2007, and this led to particularly strong sales of this title in Q2 2008. IDW continues to develop into a conduit for motion picture production houses that are looking to license their movies into the comic book format, and IDW has seen strong sales of these licensed properties.
• In January, IDW Publishing launched a new children‘s division called Jonas Publishing and a new imprint, Worthwhile Books. To launch the imprint, IDW Publishing has inked a significant agreement with a UK children’s publisher, Meadowside Books, and is striking deals with top Hollywood writers to create children’s books. IDW plans to release its first children‘s book in Q3 2008.

Additionally, the Internet Mobile Group is building a site for IDT‘s Made-in-USA project. A Q4 2008 launch is planned.

RESULTS OF IDT CARMEL OPERATIONS
$ millions, except %	Q1 07		Q2 07		Q3 07		Q4 07				FY 2007		Q1 08				Q2 08
REVENUES	$1.9		$0.8		$1.0		$1.8				$5.5		$9.7				$12.4
GROSS PROFIT	0.5		(0.9)		(2.3)		(3.6)				(6.3)		3.3				5.7
GROSS MARGIN %	26.9%		-113.7%		-241.3%		-202.9%				-116.7%		34.2%				46.0%
SG&A	0.7		1.0		1.0		1.5				4.2		1.2				1.7
BAD DEBT EXPENSE	–		–		–		–				–		–				16.1
RECEIVABLES UNDER MANAGEMENT	3.7		14.3		34.3		51.1				51.1		81.1				90.3
FACE AMOUNT OF PURCHASES	159		159		300		372				990		412				344
NET EXPENDITURES TO PURCHASE RECEIVABLES	6		13		28		31				79		37				30

IDT Carmel recorded an operating loss of ($12.2) million for the second quarter of fiscal 2008, compared with a loss of ($2.0) million in the year-ago period and operating profits of $2.0 million in the preceding quarter. IDT Carmel‘s revenues increased by $11.5 million when compared to the year-ago period and increased by $2.7 million sequentially. The revenue increase compared to fiscal 2007 resulted primarily from changing 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. Also contributing to the increase in revenue, the total amount of receivables under management increased to $90.3 million at the end of Q2 08 from $14.3 million at the end of Q2 07 and $81.1 million at the end of Q1 08.

In Q2 2008 IDT Carmel recorded bad debt expense of $16.1 million 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 current 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. These factors include, among others: a slowdown in the economy, problems in the credit and housing markets and reductions in consumer spending. Under the Effective Yield method in U.S. GAAP, the carrying balance of a portfolio equals the present value of remaining anticipated cash flows discounted using the original gross collection Internal Rate of Return (IRR) calculated when the portfolio was purchased. If, at a subsequent time, collections are expected to be lower than originally anticipated, the new expected collections are discounted back using the original IRR and the result becomes the new carrying balance. The difference between the existing book balance and the new carrying balance is recorded as an impairment of the portfolio which is charged to bad debt expense.

AMERICAN SHALE OIL CORPORATION, LLC

We believe that America pays an astounding price for our dependence on foreign oil—both in terms of direct cost and impact on foreign policy and related items. Yet, with successful technological development, the country could transform itself into an energy self-sufficient nation by exploiting its untapped and unconventional energy resources. The development of the necessary technology faces considerable challenges and financial risks, but we believe that it is an investment that America needs to make. America’s unconventional fuel treasure lies in the Green River Formation in Colorado, Utah and Wyoming. The Formation contains the largest known fossil energy reserves in the world. Most of it is in the form of oil shale with proven reserves sufficient to supply America’s domestic oil needs for the foreseeable future.

IDT recently formed the American Shale Oil Corporation (AMSO) and invested $2.5 million to purchase a 75% stake in EGL Oil Shale. EGL was awarded a Research, Development and Demonstration lease on 160 acre tracts in Western Colorado by the Bureau of Land Management. Other companies granted similar leases include Shell and Chevron. If EGL’s proprietary in-situ retorting technology proves economically viable and environmentally responsible, the company will be awarded the right to operate commercially on an additional adjacent 4,960 acre Preference Right Lease Tract. Recovery rates on portions of the tract could be as high as 2 million barrels per acre.

As the only independent lease holder pursuing in-situ extraction technologies, we are determined that AMSO will become the catalyst for a truly national, collaborative and open approach to unlock the oil shale reserves and help the nation achieve energy independence in an environmentally responsible way. We anticipate investing at least $50 million on investments and development of opportunities in this industry.

IDT CONFERENCE CALL INFORMATION

Conference call today, March 11, 2008, at 4:30 PM Eastern Time.

• From the U.S., please dial 1-800-351-4893, Passcode IDT.
• International callers, please dial 1-334-323-7224, Passcode IDT.
• Replay available for one week at:
  1-877-919-4059, Passcode: 73022506 for domestic callers, or
  1-334-323-7226, Passcode: 73022506 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 is a multinational holding company with operations that span several industries. Our principal businesses consist of:

• IDT Telecom, through which we provide telecommunications services and products worldwide to retail and wholesale customers, including prepaid and rechargeable calling cards, consumer local and long distance service, prepaid wireless phone services and wholesale carrier services;
• IDT Energy, which operates our Energy Services Company, or ESCO, in New York State;
• IDT Carmel, our receivables portfolio management and collection businesses;
• American Shale Oil Corporation (AMSO), formed in February 2008 to manage IDT‘s U.S. oil shale ventures;
• IDT Local Media, which is primarily comprised of CTM Brochure Display, our brochure distribution company, and the WMET-AM radio station in the Washington D.C. metropolitan area; and
• IDT Internet Mobile Group, which is a new media company that leverages digital, mobile, and traditional distribution mechanisms to create and distribute content. It does this through its Zedge and IDW arms. Zedge is a website and platform geared toward the production and distribution of mobile content. IDW is a comics, graphic novel, and children‘s book publisher that creates and licenses original IP.

We also hold assets and operate other smaller or early-stage initiatives and operations, including intellectual property held in units of IDT Capital, IDT Spectrum, which holds a significant number of Federal Communications Commission licenses for commercial fixed wireless spectrum in the United States, IDT Global Israel, which is primarily comprised of call center operations, and certain real estate investments.

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. While these forward-looking statements represent IDT‘s 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 various risks and uncertainties. These risks and uncertainties include, but are certainly not limited to the specific risks and uncertainties discussed in our reports filed with the SEC. 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended January 31,						Six Months Ended January 31,
	2008			2007			2008			2007
	(In thousands, except per share data)
Revenues	$476,737			$512,500			$944,791			$1,034,826
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)	373,648			411,369			740,112			810,239
Selling, general and administrative (i)	117,765			108,728			233,143			219,639
Bad debt	18,987			1,481			21,295			4,381
Depreciation and amortization	16,748			19,943			34,567			39,976
Restructuring and severance charges	2,439			1,246			4,182			6,326
Total costs and expenses	529,587			542,767			1,033,299			1,080,561
Arbitration award	—			—			40,000			—
Gain on sale of U.K.-based Toucan business	—			2,918			—			44,671
Loss from operations	(52,850	)		(27,349	)		(48,508	)		(1,064	)
Interest income, net	3,224			5,153			5,602			8,756
Other (expense) income, net	(7,618	)		365			(1,285	)		(1,421	)
(Loss) income from continuing operations before minority interests and income taxes	(57,244	)		(21,831	)		(44,191	)		6,271
Minority interests	(9	)		(2,642	)		(635	)		(6,360	)
Provision for income taxes	(2,984	)		(2,492	)		(6,819	)		(4,026	)
Loss from continuing operations	(60,237	)		(26,965	)		(51,645	)		(4,115	)
Discontinued operations, net of tax:
Loss from discontinued operations	—			—			—			(7,165	)
(Loss) gain on sale of discontinued operations	(2,232	)		—			(4,044	)		198,235
Total discontinued operations	(2,232	)		—			(4,044	)		191,070
Net (loss) income	$(62,469	)		$(26,965	)		$(55,689	)		$186,955
Earnings per share:
Basic and diluted:
Loss from continuing operations	$(0.80	)		$(0.33	)		$(0.67	)		$(0.05	)
Total discontinued operations	(0.03	)		—			(0.05	)		2.30
Net (loss) income	$(0.83	)		$(0.33	)		$(0.72	)		$2.25
Weighted-average number of shares used in calculation of basic and diluted earnings per share	75,022			80,728			77,323			82,930
(i) Stock-based compensation included in selling, general and administrative expenses	$1,792			$2,738			$3,222			$4,451

IDT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
		January 31, 2008				July 31, 2007
		(Unaudited)				(Audited)
		(in thousands)
Assets
Current assets:
Cash and cash equivalents		$	149,965			$	153,845
Marketable securities			130,266				388,140
Trade accounts receivable, net of allowance for doubtful accounts of $19,796 at January 31, 2008 and $19,654 at July 31, 2007			168,788				164,802
Arbitration award receivable			42,934				—
Prepaid expenses			24,966				28,920
Other current assets			91,675				60,452
Total current assets			608,594				796,159
Property, plant and equipment, net			232,454				251,318
Goodwill			101,801				101,515
Licenses and other intangibles, net			11,308				13,824
Investments			130,411				119,052
Deferred income tax assets, net			233,856				—
Other assets			96,562				78,465
Total assets		$	1,414,986			$	1,360,333
Liabilities and stockholders‘ equity
Current liabilities:
Trade accounts payable		$	56,856			$	47,467
Accrued expenses			240,960				288,017
Deferred revenue			100,384				112,757
Capital lease obligations—current portion			21,808				21,049
Notes payable—current portion			4,208				8,095
Other current liabilities			7,021				17,598
Total current liabilities			431,237				494,983
Income taxes payable			363,303				—
Deferred income tax liabilities, net			—				105,049
Capital lease obligations—long-term portion			14,189				23,401
Notes payable—long-term portion			81,451				82,847
Other liabilities			11,892				12,928
Total liabilities			902,072				719,208
Minority interests			9,073				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 14,632 and 14,996 shares outstanding at January 31, 2008 and July 31, 2007, respectively			251				251
Class A common stock, $.01 par value; authorized shares—35,000; 9,817 shares issued and outstanding at January 31, 2008 and July 31, 2007			98				98
Class B common stock, $.01 par value; authorized shares—200,000; 63,530 and 63,261 shares issued and 51,060 and 56,043 shares outstanding at January 31, 2008 and July 31, 2007, respectively			635				633
Additional paid-in capital			715,052				711,103
Treasury stock, at cost, consisting of 10,443 and 10,079 shares of common stock and 12,470 and 7,218 shares of Class B common stock at January 31, 2008 and July 31, 2007, respectively			(284,218	)			(240,355	)
Accumulated other comprehensive (loss) income			(151	)			10,750
Retained earnings			72,174				147,682
Total stockholders‘ equity			503,841				630,162
Total liabilities and stockholders‘ equity		$	1,414,986			$	1,360,333

IDT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended January 31,
		2008				2007
	(In thousands)
Net cash used in operating activities	$	(114,317	)		$	(44,716	)
Investing activities
Capital expenditures		(13,618	)			(16,553	)
(Issuance) collection of notes receivable, net		(595	)			275
Investments and acquisitions, net of cash acquired		(17,969	)			(3,581	)
Proceeds from sale of investments		3,382				—
Proceeds from sale of building		4,872				—
Proceeds from sale of IDT Entertainment, net of cash sold and transaction costs		—				261,604
Proceeds from sale of U.K.-based Toucan business, net of transaction costs		—				38,380
Purchase of debt portfolios		(67,331	)			(19,157	)
Principal collections and proceeds from resale of debt portfolios		12,130				6,261
Proceeds from sales and maturities of marketable securities		593,396				876,041
Purchases of marketable securities		(349,514	)			(898,292	)
Net cash provided by investing activities		164,753				244,978
Financing activities
Distributions to minority shareholders of subsidiaries		(2,941	)			(8,005	)
Proceeds from exercises of stock options		94				4,103
Proceeds from employee stock purchase plan		808				1,075
Proceeds from sale leaseback transactions on capital leases		—				13,283
Repayments of capital lease obligations		(9,237	)			(10,741	)
Repayments of borrowings		(1,374	)			(1,345	)
Repurchases of common stock and Class B common stock		(44,036	)			(2,476	)
Net cash used in financing activities		(56,686	)			(4,106	)
Discontinued operations
Net cash used in operating activities		—				(20,261	)
Net cash provided by investing activities		—				3,847
Net cash provided by financing activities		—				7,536
Net cash used in discontinued operations		—				(8,878	)
Effect of exchange rate changes on cash and cash equivalents		2,370				1,780
Net (decrease) increase in cash and cash equivalents		(3,880	)			189,058
Cash and cash equivalents, beginning of period		153,845				151,192	(*)
Cash and cash equivalents, end of period	$	149,965			$	340,250
Supplemental schedule of non-cash investing and financing activities
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 U.K.-based Toucan business	$	—			$	7,851

(*) Includes cash and cash equivalents of discontinued operations of $32.1 million as of July 31, 2006.

SELECTED CONSOLIDATED FINANCIAL DATA
THREE MONTHS ENDED JANUARY 31, 2008
			Total IDT				Inter-			Wholesale			Prepaid Products		CPS			IDT			IDT			IDT
(In thousands)			Corporation				Segment			Telecom			Telecom		Telecom			Energy			Carmel			Capital			Corporate
STATEMENT OF OPERATIONS DATA
Revenues			$	476,737			$	( 103,917)		$	264,375		$ 202,868		$	23,012		$	65,068		$	12,362		$	12,969		$	–
Costs and expenses:
Direct cost of revenues (exclusive of
depreciation and amortization)				373,648				(103,917)			228,371		164,654			12,387			58,305			6,680			7,169			–
Selling, general and administrative				117,765				–			25,806		45,389			5,096			4,657			1,687			16,955			18,175
Bad debt				18,987				–			(19)		1,193			1,113			50			16,052			598			–
Depreciation and amortization				16,748				–			7,677		6,281			404			30			115			1,669			571
Restructuring and severance charges				2,439				–			675		437			4			89			–			992			242
Total costs and expenses				529,587				(103,917)			262,510		217,954			19,004			63,131			24,533			27,383			18,989
Income (loss) from operations				(52,850)			$	–		$	1,865		$ (15,087)		$	4,008		$	1,938		$	(12,171)		$	(14,414)		$	(18,989)
Interest income, net				3,224
Other expense, net				(7,618)
Loss from continuing operations before minority interests and income taxes				(57,244)
Minority interests				(9)
Provision for income taxes				(2,984)
Loss from continuing operations				(60,237)
Discontinued operations, net of tax:
(Loss) on sale of discontinued operations				(2,232)
Net loss			$	(62,469)

 

Please join the IDT Corporation (NYSE: IDT, IDT.C) second quarter fiscal

2008 conference call for results for the three-month period ended

January 31, 2008, along with an update on IDT’s businesses. The

conference call is scheduled for Tuesday, March 11th, 2008 at 4:30 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.vcall.com/IC/CEPage.asp?ID=126645

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

(800) 351-4893, and for international callers is (334) 323-7224, and the

Password for both is “IDT“.

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;

or via a replay, for domestic callers at (877) 919-4059, and for

international callers at (334) 323-7226, both using Conference ID number

73022506. The teleconference replay will be available for one week after

the call.

We look forward to your participation.

About IDT

IDT

Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDT Energy operates an

Energy Services Company (ESCO) in New York State. IDT subsidiary

American Shale Oil Corporation (AMSO) manages IDT‘s

oil shale ventures. IDT’s Capital division incubates newer businesses,

and the Company’s Spectrum subsidiary holds its spectrum license assets.

IDT Telecom provides retail and wholesale telecommunications services

and products, including pre-paid and rechargeable calling cards,

consumer local, long distance, and wireless phone services, and

wholesale carrier services. Under the Net2Phone brand name, the Company

also provides a range of voice over Internet protocol (VoIP)

communications services. IDT Capital’s operations include receivables

portfolio management and collection, ethnic food distribution, brochure

distribution, Internet Mobile Group, Net2Phone Ventures and other

initiatives. IDT Corporation’s Class B Common Stock and Common Stock

trade on the New York Stock Exchange under the ticker symbols IDT and

IDT.C, respectively.

IDT Corporation (NYSE: IDT, IDT.C) today announced that IDT Spectrum,

Inc.—its division that operates and markets

fixed wireless spectrum products and solutions—has

established an aggressive online leasing program for mobile and fixed

wireless providers that is accessible via its newly launched website, www.idtspectrum.com.

“As the more than $19 billion raised by the FCC at its recent 700 MHz

spectrum auction clearly demonstrates, we are increasingly living in a ‘wireless

world‘ and IDT Spectrum is well-positioned to

unlock the potential of wireless broadband through our high frequency

Spectrum licenses. We have the ability to provide the bandwidth which is

necessary to successfully deploy these technologies,“

said Jim Courter, IDT’s Vice Chairman and CEO.

With more than 1,250 licenses in its inventory, IDT Spectrum is the

largest holder of commercial high frequency exclusively licensed fixed

wireless spectrum in the United States, both in terms of nationwide

coverage and total bandwidth. On average, the Company holds more than

500 MHz of spectrum in the top 200 U.S. markets and approximately 940

MHz of spectrum in the top 50 U.S. markets. IDT Spectrum‘s

licenses—both its 39 GHz and LMDS (28-31 GHz)

holdings—are contiguous across the whole

United States (including Alaska, Hawaii and Puerto Rico), giving the

Company the competitive advantage of being able to serve customers

nationwide. The licenses held by IDT Spectrum are suited for high

bandwidth point to point applications, including the needs of wireless

operators to carry traffic from cell sites to network access points—referred

to in the industry as backhaul.

Michael Rapaport, IDT Spectrum‘s President,

added, “IDT has a proud history of leveraging

advanced technologies to deliver high quality services at reduced

prices. IDT Spectrum looks forward to offering a high quality,

cost-effective solution to the backhaul bottleneck issue as wireless

carriers deploy more 3G and 4G services. To that point, we now offer a

fixed wireless solution that can offer nationwide, regional or local

spectrum leases either in large frequency blocks or point-to-point

links. IDT Spectrum is pleased to launch our new online leasing program

to serve backhaul and other customer needs, which will enable our rapid

time-to-market approach to get even faster.“

About IDT Corporation:

IDT

Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDT Energy operates an

Energy Services Company (ESCO) in New York State. IDT subsidiary

American Shale Oil Corporation (AMSO) manages IDT‘s

oil shale ventures. IDT’s Capital division incubates newer businesses,

and the Company’s Spectrum subsidiary holds its spectrum license assets.

IDT Telecom provides retail and wholesale telecommunications services

and products, including pre-paid and rechargeable calling cards,

consumer local, long distance, and wireless phone services, and

wholesale carrier services. Under the Net2Phone brand name, the Company

also provides a range of voice over Internet protocol (VoIP)

communications services. IDT Capital’s operations include receivables

portfolio management and collection, ethnic food distribution, brochure

distribution, Internet Mobile Group, Net2Phone Ventures and other

initiatives. 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.

Says It Will Pursue an ‘Open Collaboration‘ Model to Solve Shale Oil Challenges

IDT Corporation (IDT) announced today the formation of a new division, the American Shale Oil Corporation (AMSO), and outlined a vision for the company‘s future. AMSO will manage IDT‘s oil shale ventures including the company‘s initial foray – its 75% stake in E.G.L. Oil Shale LLC (E.G.L.), which will be renamed AMSO LLC.

E.G.L. is one of three companies awarded leases by the Bureau of Land Management to develop and demonstrate in-situ shale oil extraction technologies on 160 acres in Western Colorado. If E.G.L. demonstrates an economically viable and environmentally responsible shale oil extraction process, it will be awarded the right to operate commercially on an additional 4,960 acre Preference Right Lease Tract. Shale oil reserves on portions of that tract are estimated to be as high as two million barrels per acre.

The company also announced the names of four key AMSO LLC executives:

Howard Jonas, IDT‘s Chairman, will serve as the company‘s Chairman and Chief Executive Officer.

Wesley Perry will serve as the company‘s Vice Chairman. An engineer by training, Mr. Perry is also President of EGL Resources, Inc., an independent oil and gas producer headquartered in his hometown of Midland, Texas, where he was recently elected Mayor.

Alan K. Burnham, Ph.D., one of the nation‘s leading scientific authorities on oil shale extraction technology, will serve as the company‘s Chief Technology Officer (CTO). Dr. Burnham‘s career includes three decades of senior research and technical project management positions at the Lawrence Livermore National Laboratory. From 1993 to 1995, he led the Lab‘s Fossil Energy and Energy Technologies programs, which studied fossil energy projects including oil shale processing.

Roger L. Day will serve as the company‘s Vice President for Operations. He previously managed field operations for E.G.L. Oil Shale. Mr. Day has worked for over thirty years in mine engineering. In Western Colorado, he pioneered proprietary drilling techniques to recover Nahcolite using high temperature solution mining and directional drilling—practices that are expected to be translatable to the shale oil recovery process.

“In 2007, Americans shelled out a record $331 billion on oil imports,“ said Howard Jonas. “But even that astounding figure represents only a fraction of the true cost. Oil imports are undermining our strategic interests around the globe by subsidizing hostile regimes. The security costs involved in defending global oil adds tens of billions more to the tab. America is staggering under the burden of our foreign oil addiction. This might be excusable if there were no better alternative available to us…but there is. America has approximately two trillion barrels of shale oil reserves. It is truly one of America‘s greatest national resource treasures.

“Nearly fifty years ago, a national commitment to land a man on the moon galvanized a cooperative effort involving private enterprise, the highest levels of government, and a space agency comprised of highly dedicated professionals. Working together, they successfully developed new technologies and overcame every obstacle. Today, America needs a comparable, federally-led, public-private partnership to win our energy independence. Researching and developing environmentally responsible ways to tap our nation‘s shale oil and other unconventional fuel reserves must be a key part of that effort. The challenges are so difficult, and the stakes are so high, that such a massive effort is both necessary and justified.

“AMSO has accepted this challenge and will do its part. We intend to pursue, and are urging the other participants in the industry to join us in, an ‘open collaboration‘ approach to solving the challenges that have stymied shale oil extraction for decades. Processes and results should be transparent and public. We intend to share our challenges, findings, and achievements with the American people and encourage others to do the same. We will solicit ideas and welcome participation from research universities, national and private labs, private industry, and from anyone who is interested in advancing the prospects for oil shale,“ Jonas continued. “This needs to be a truly national effort. The collective genius of America will be able to conquer this challenge.“

“We are delighted that Wes Perry, Alan Burnham and Roger Day will be working together with us on this project,“ said Jim Courter, CEO of IDT. “Their knowledge and experience will help ensure that the technologies we develop are translated into results in the field. Our investment in oil shale reflects our conviction that America‘s dependence on foreign oil must end.“

About IDT Corporation:

IDT Corporation is an innovative and opportunity seeking multinational holding company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. IDT subsidiary American Shale Oil Corporation (AMSO) manages IDT‘s oil shale ventures. IDT Energy operates an Energy Services Company (ESCO) in New York State. IDT’s Capital division incubates newer businesses, and the Company’s Spectrum subsidiary holds its spectrum license assets. IDT Telecom provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards, consumer local, long distance, and wireless phone services, and wholesale carrier services. Under the Net2Phone brand name, the Company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include receivables portfolio management and collection, ethnic food distribution, brochure distribution, Internet Mobile Group, Net2Phone Ventures and other initiatives. 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 (NYSE: IDT, IDT.C) announced that its Chairman, Howard Jonas, has authored a white paper explaining his view of certain strategic approaches of the company and discussing some initiatives that reflect those approaches, as well as IDT’s plans for building long-term value. The white paper can be viewed on IDT’s website by clicking here, and is reprinted below for your convenience. The views expressed in the white paper are those of Mr. Jonas and do not necessarily reflect the views of IDT, its board of directors or other members of IDT’s management.

Fuel for the Future: IDT’s Current Position and Strategic Outlook

A White Paper by Howard Jonas, Chairman of IDT Corporation

As I write this, IDT‘s share price is under $7. Four years ago, it was roughly three times as much. For those of you who have stuck with us through this long, painful slide, I am honored by your loyalty. But I am also determined to do better for you.

I‘m writing this paper for two reasons. First, to tell you why I believe that the market is fundamentally underestimating IDT‘s underlying value, and second, to share with you our vision for IDT‘s future, including two of our most interesting new projects.

I believe that our GAAP financial statements fundamentally understate IDT’s true value and financial performance. This situation is not unique to IDT: GAAP requires full expensing of investments in intangible assets, including items such as process improvements, advertising and sales promotion, employee training, and numerous other outlays that GAAP views as operational expenses but more accurately represent investments in strategic assets. Therefore, companies that invest heavily in intangibles in order to generate positive future cash flow may have difficulty showing positive current earnings.

GAAP‘s treatment of spending intended to build strategic value was based on the assumption that there was little correlation between such expenditures and future revenue. Yet a variety of studies have since shown that an economically meaningful association does exist between these outlays and subsequent earnings. Put another way, these investment expenditures can actually be indicators of higher future cash flows. Broadly, then, among companies that invest heavily in their own future, current negative earnings fail to convey the full picture of performance or the true value of equity.

I am not alone in this view of the shortsightedness of GAAP. Several academics have in the past criticized GAAP’s policy of expensing investments in intangible assets. They claim that investors often fail to fully realize the value relevance of these expensed investments. This undervaluing of investments in R&D and like expenditures results in market inefficiency as the true value of equity is not fully recognized. Worse still, it creates incentive to reduce spending on discretionary intangible investments in order to enhance short term performance. According to some academics, the damaging influence of this mentality is so pervasive that it represents a fundamental flaw in the entire financial accounting model.

At IDT, we have always shunned the temptation to increase short term performance by sacrificing long term economic health. Rather, we continue to invest millions of dollars a year on activities that directly add value to our incubating businesses. These strategic investments are the building blocks for our future business units and the sources of future cash flows and value for our shareholder. We have spent millions of dollars positioning and defending our intellectual property. We build high-growth businesses that are going to be important asset plays – including the costly market share building activities for Zedge, IDW Publishing, and IDT‘s New York energy supply company (ESCO). We know that in the long term, these investments will return multiples of the amounts invested to our shareholders when we monetize these dynamic and growing businesses.

Our investments in Zedge, for example, have generated explosive growth. Our zedge.net website now has six and a half million registered users, and is one of the fastest growing mobile content providers in the world. IDT Energy began with a small acquisition in 2005. By investing significantly in marketing and customer acquisition, the company has grown to over 320,000 meters, placing us among the largest independent residential ESCOs in New York State.

Were we to eschew these investments into our future – the millions spent defending our IP, the market-building activities in Zedge and IDT Energy, and all similar strategic investments – our company would likely show current net profit. Yet with an eye to the latent value we believe results from our pattern of investing in our own future, we will continue to make strategic investments to incubate dynamic, promising, asset play businesses. As we continue to grow and seek monetization opportunities, the underlying value of the company will emerge.

One prime example of IDT’s commitment to investing in its future is our IDT Carmel receivables management business, in which we invest in financial assets – receivable portfolios – with proven independent value. We have been making significant, periodic investments in these portfolios, and expect to continue doing so. Expanding our debt management portfolio through regular investment is a prudent strategy that will yield significant cash and healthy rates of return in a three to five year time frame. For many years, our prepaid calling card business generated positive cash flow that allowed IDT to make strategic investments in longer term asset plays. We believe that IDT Carmel will serve this function for years to come.

Now, let‘s talk more about the future.

Since I founded IDT in 1990, we have never been shy about challenging the status quo. Our initial business – callback – successfully defied the incumbent telecoms‘ monopoly on overseas calling. Net2Phone, our pioneering VoIP provider, helped to open all voice communication to competition. IDT Entertainment leveraged new technologies to significantly cut the cost of film animation. When the corporate establishment fails the consumer, we find opportunity.

Today we remain dedicated to finding new ways to undercut the powers-that-be to deliver better services to American consumers at a lower cost.

IDT has recently embarked on two ventures aimed right at the heart of business-as-usual in America.

America pays an astounding price for our dependence on foreign oil. In 2007, we shelled out $331 billion for oil imports. But even that astounding figure represents only a fraction of the true cost. The defense costs – both in terms of American troops‘ lives lost overseas and in dollars spent defending our oil supply – are heavier still. At home, the cost of imported oil is hobbling our economy. It sucks away capital from investment, slows economic growth, hampers job creation, and slows productivity gains. America‘s economy is staggering under the burden of our foreign oil addiction.

Yet, America could transform herself into an energy self-sufficient nation by exploiting its untapped and unconventional energy resources. The explosive growth of Canada‘s Athabasca oil sands operations is a case in point. Bitumen production in Athabasca has risen from nominal levels to over one million barrels a day in the past five years. By 2030, production could reach five million barrels daily. Moreover, the efficiency of these operations has improved rapidly as new extraction processes and techniques have been developed and applied.

America‘s unconventional fuel treasure lies in the Green River Formation in Colorado, Utah and Wyoming. The Formation contains the largest fossil energy reserves in the world. Most of it is in the form of oil shale with proven reserves sufficient to supply America‘s domestic oil needs for the foreseeable future.

IDT recently purchased a 75% stake in EGL Oil Shale. Along with Shell and Chevron, EGL was one of three companies awarded oil shale Research, Development and Demonstration leases on 160 acre tracts in Western Colorado by the Bureau of Land Management. If EGL‘s proprietary in-situ retorting technology proves economically viable and environmentally responsible, the company will be awarded the right to operate commercially on an adjacent 4,960 acre Preference Right Lease Tract. Recovery rates on portions of the tract could be as high as 2 million barrels per acre.

It would be difficult to overstate the risk of this venture. It is, of course, highly speculative and long term. Big oil has spent billions to open up the Formation’s Green River Basin to large scale oil shale production and still does not have a commercially viable method of extracting the oil. The technological, environmental, economic and regulatory hurdles are substantial. But it is even more difficult to imagine that America will not exploit its oil shale reserves sometime within the next few decades. The multi-trillion dollar question is, “When will the country start fighting for its energy independence?“

As the only independent lease holder pursuing in-situ extraction technologies, our American Shale Oil (AMSO) subsidiary is in a prime position to harness the technological genius of America. Big oil will always pursue the cheapest global resources first. But for our nation, unlocking our domestic oil shale reserves is the best hope for energy independence. I am determined that AMSO will become the catalyst for a truly national, collaborative and open approach to unlock the oil shale reserves and help the nation achieve energy independence in an environmentally responsible way.

The other IDT initiative I want to discuss is the Depot USA online store. Depot USA cannot be compared to our oil shale initiative in terms of its potential impact on the global economy. Oil shale production could transform America from a net oil importer to an exporter, and thereby reshape the world‘s geo-political balance. Nor is Depot USA comparable to AMSO in terms of its potential value to investors. Nevertheless, both ventures represent potential breakthrough entrepreneurial approaches to address critical vulnerabilities in the U.S. economy.

America has lost one quarter of the nearly twenty million jobs manufacturers provided in 1979. During those same years, the American middle class has, by most measures, been in a corresponding decline. The rich have done very well, while the “middle class squeeze“ has pushed millions of families nearer poverty. This is no coincidence. Manufacturing had long been the lynchpin of middle class prosperity.

The decline of manufacturing in the United States has been aided and abetted by the national big-box retail chains. They have developed global supply chains with a single-minded devotion to cutting costs, but a mindless lack of regard for the ultimate welfare of their American customers.

Conventional wisdom has it that the decline of the “Made in the USA“ movement in the early 1990‘s and the continuing struggles of the Big Three automakers are further proof that American consumers‘ purchase decisions are based on perceived value over country of origin. That may be true for many folks. But it is also indisputably true that a very large number of Americans want to buy American. The big box retailers do not speak to these folks. They deliberately focus the buyers‘ decision exclusively on price while downplaying products‘ country of origin.

But imagine a world where consumers can easily find, identify and purchase high quality American made goods at competitive prices. Imagine how different consumer‘s choices would be if the intrinsic value of buying American was explained and reinforced in the marketplace. That‘s the idea behind “Depot USA“, IDT‘s online store now in development.

“Depot USA“ is a long term, developmental project that will begin by offering American made apparel, and then gradually expand into other lines of product. We will market to and build a following among the American consumers who prefer American made products.

Taken together, Depot USA and AMSO are two very interesting ventures. Both are based on the premise that Americans and their government must find new solutions to deliver a stronger, more secure economic future. If we can contribute to the fight for energy independence by opening the country‘s oil shale reserves, and boost American manufacturing by giving American consumers online access to domestically manufactured goods, then we will help change America for the better, while doing very well for our shareholders.

About IDT Corporation:

IDT Corporation is an innovative and opportunity seeking multinational holding company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. IDT Energy operates an Energy Services Company (ESCO) in New York State. IDT subsidiary American Shale Oil Corporation (AMSO) manages IDT‘s oil shale ventures. IDT’s Capital division incubates newer businesses, and the Company’s Spectrum subsidiary holds its spectrum license assets. IDT Telecom provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards, consumer local, long distance, and wireless phone services, and wholesale carrier services. Under the Net2Phone brand name, the Company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include receivables portfolio management and collection, ethnic food distribution, brochure distribution, Internet Mobile Group, Net2Phone Ventures and other initiatives. 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.

 

R&D Effort to Unlock America’s Vast
Untapped Unconventional Fuel Reserves

IDT Corporation (IDT) and EGL Oil Shale, LLC (EGL) announced today that

IDT has signed a binding Letter of Intent to acquire a 75% interest in

EGL. EGL is one of three holders of 10-year leases granted by the US

Bureau of Land Management (BLM) to research, test and demonstrate the

potential for commercial oil shale production in Western Colorado. This

area is estimated to contain the world‘s

richest oil shale reserve, with 1.2 trillion barrels of potentially

recoverable oil. The 10-year lease affords EGL the opportunity to

demonstrate its innovative oil shale recovery technology in the field.

The other holders of similar leases in Colorado are Royal Dutch Shell

and Chevron. Proceeds from IDT‘s investment

will be used to fund EGL‘s Research,

Development and Demonstration plan. Once EGL demonstrates the economic

and environmental viability of its technology, it will have the

opportunity to expand its lease to 5,120 acres for commercial

development.

IDT‘s investment in EGL is part of a broader

strategic initiative to significantly expand its operations in the

energy sector. Claude Pupkin, SVP of Corporate Development, stated: “We

believe that EGL represents a great strategic fit as it combines oil &

gas expertise, an entrepreneurial spirit and an innovative approach to

the oil shale opportunity.“

Oil shale is a mineral that contains a solid hydrocarbon that requires

heating to high temperatures to produce oil and gas. Past efforts to

commercialize oil shale in Colorado were based upon mining and surface

processing methods. EGL‘s approach is to

recover the shale oil underground without mining by using modern oil and

gas drilling, completion and recovery technologies not available to

earlier developers. Following an environmental assessment, EGL‘s

process was given a finding of No Significant Impact by the BLM. The

transaction may be subject to applicable regulatory approvals.

“We are extremely pleased to be working with

IDT, a company that shares our values and approach to solving the energy

challenges facing our country and the world,“

said Wes Perry, EGL‘s President. “EGL‘s

mission is to be a good steward of the asset, providing for an energy

independent America in an environmentally conscious manner.“

Howard Jonas, Chairman of IDT Corporation, stated: “We

are extremely excited to join forces with EGL in this effort. A

successful development of this resource will help break our country‘s

dependence on imported oil, greatly improving our national security

while making a significant contribution to the US economy.“

About EGL

E.G.L. Oil Shale, LLC is a subsidiary of EGL Resources, Inc., a

privately owned independent oil & gas company with operations in the

southwestern United States. EGL Resources is a working alliance of

petroleum geologists, geophysicists, engineers, management and property

operating professionals based in Midland, Texas.

About IDT

IDT

Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDT Energy operates an

Energy Services Company (ESCO) in New York State. IDT’s Capital division

incubates newer businesses, and the Company’s Spectrum subsidiary holds

its spectrum license assets. IDT Telecom provides retail and wholesale

telecommunications services and products, including pre-paid and

rechargeable calling cards, consumer local, long distance, and wireless

phone services, and wholesale carrier services. Under the Net2Phone

brand name, the Company also provides a range of voice over Internet

protocol (VoIP) communications services. IDT Capital’s operations

include receivables portfolio management and collection, ethnic food

distribution, brochure distribution, Internet Mobile Group, Net2Phone

Ventures and other initiatives. 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.

Forums, Chat Events, Free Content, Contest and Trailers Part Of
Expansive Arrangement

Zedge Studios, a division of IDT Internet Mobile Group (IIMG), announced

today that it has signed a deal to promote Overture Films‘

upcoming feature film Mad Money, which stars Diane Keaton, Queen

Latifah, Katie Holmes and Ted Danson, on www.zedge.net,

one of the world‘s most popular destinations

for complimentary content for mobile device users. Zedge.net, with users

in 216 countries worldwide, will be part of the international rollout of

the film as well. The site recently topped seven million registered

subscribers, averages over 10,000 new daily registrations and boasts

over 700,000 pieces of free mobile-related available content.

Mad Money, produced and distributed by Overture Films, opens

nationwide on January 18^th. The comedy is

directed by Academy Award® winner Callie

Khouri (screenwriter of Thelma and Louise and director of The

Divine Secrets of the Ya-Ya Sisterhood) from a script by Glenn Gers (Fracture).

Keaton, Latifah and Holmes star as three ordinary women who form an

unlikely friendship and decide to do something extraordinary—rob

one of the most secure banks in the world.

The scope of this promotional deal includes exclusive, free mobile

content based on the film, including ringtones, video and wallpapers

only available on Zedge. In addition, users can participate in Mad

Money movie forums, watch trailers, and participate in the “What

Would You Do With Mad Money?“ video contest.

To enter the contest, users upload a 30 second video saying what they

would do with Mad Money. Judged by a panel including Mad Money

co-star Adam Rothenberg, winning contestants will get a $1000 cash

prize, a free year of STARZ! premium cable service or a Mad Money DVD.

“This is an important deal in the recognition

of Zedge.net as a mobile content industry leader,“

said Moshe Berger, IIMG CEO and head of Zedge Studios. “Giving

Zedgers desirable content by aligning ourselves with leading

entertainment partners like Overture Films is a key component of our

growth strategy.“

“We‘re delighted

to partner with Zedge on this promotion,“

said Chris McGurk, CEO of Overture Films. “We

know its wide user base will respond positively to our film, which is

pure fun.“

ABOUT IDT INTERNET MOBILE GROUP (IIMG) AND ZEDGE STUDIOS:

IIMG develops and licenses original content for distribution through

traditional, online and mobile platforms. Its holdings include IDW

Publishing, which forms the core of its Zedge Studios operation, as

well as Norway-based www.zedge.net,

one of the world‘s most popular

user-generated mobile content and social networking communities. IIMG is

a division of IDT

Corporation (NYSE: IDT, IDT.C), a multinational company with

operations that span various industries.

ABOUT OVERTURE FILMS:

Overture Films develops,

produces, acquires, and distributes feature-length, theatrical motion

pictures worldwide. The studio is an operating unit of Starz, LLC, which

in turn is a wholly owned subsidiary of Liberty Media Corporation that

is attributed to Liberty Capital Corp. Its affiliated companies, Anchor

Bay Entertainment and Starz Entertainment, make the films available

domestically to viewers via home video, premium television, Internet and

other outlets.

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.

Signs Distribution Agreement with Renowned UK Children’s
Publishing Firm; Pacts With Top Hollywood Screenwriters To Create
Children’s Books

In a precedent-setting move, IDW Publishing, a division of IDT Internet

Mobile Group and an established leader in the comic book and graphic

novel arena, is launching a children‘s

division called Jonas Publishing and a new imprint, Worthwhile Books.

The move will allow IDW Publishing to expand its library of successful

print titles, which to date has been particularly focused in the horror,

action, and sci-fi genres, such as 30 Days of Night and The

Transformers. To launch the imprint, IDW Publishing has inked a

significant agreement with a renowned UK children‘s

publisher and is striking deals with top Hollywood writers to create

children‘s books.

Worthwhile Books has finalized a first-look arrangement with UK children‘s

publisher Meadowside Books (www.meadowsidebooks.com),

known for its unique character-driven picture books for young readers.

Worthwhile will be the exclusive U.S. publisher of selected Meadowside

titles and will retain domestic film and television rights on those

properties. The first Meadowside Books title in the deal, Michael

Recycle, by Ellie Bethel, follows the escapades of a “green-caped“

environmental hero and will be released in March by Worthwhile Books.

Worthwhile expects to issue approximately 10 Meadowside titles over the

course of the first year, including William‘s

Dinosaurs, by Alan Baker, which tells the tale of a little boy

who finds more than trees in the dark woods near his home.

Worthwhile‘s Hollywood outreach is tapping

into the top ranks of movie and television writing talent to bring

original literary stories to the young reading audience. The collective

credits of the entertainment writers include some of the industry‘s

most successful television series and movies. These writers include:

• David N. Weiss, whose writing credits include Shrek 2, Jimmy

  Neutron: Boy Genius and both Rugrats movies

• David Sacks, a writer/producer on The Simpsons, producer on Malcolm

  in the Middle, and writer on 3^rd

  Rock from the Sun

• Dava Savel, an Emmy Award- winning comedy writer with credits on shows

  such as Grace Under Fire and Will & Grace, in

  addition to being an executive producer on the children‘s

  program That‘s So Raven

• David Steinberg, whose producing credits include Meet the Robinsons,

  Home on the Range and Cats Don‘t

  Dance

• Robert Kurtz, who wrote for the movie Everyone‘s

  Hero and has written for such shows as Boy Meets World and Grace

  Under Fire

“Our growth strategy calls for continued

expansion into other areas of the entertainment sector,“

said Ted Adams, IDW co-founder and president. “Creating

and controlling successful children‘s

properties helps us in those endeavors. Meadowside‘s

books are playful, empowering, smart and exciting and the artwork is

simply breathtaking. These are children‘s

picture stories in the classic tradition with a central character that

is relatable to today‘s kids.“

In speaking of the outreach to Hollywood writers, Robert Kurtz,

vice-president and creative director at Worthwhile Books, said “Every

writer I know who works in television or movies has a children‘s

story inside him or her that they‘ve wanted

to tell for years but for a variety of reasons never were able to get

out into the marketplace. We want writers to think of Worthwhile Books

as the one-stop destination for that kind of project. It is designed to

be a writer-driven company and we think that will be very attractive to

these talented artists.“

ABOUT IDW PUBLISHING:

Idea and Design Works, LLC, (DBA IDW Publishing) is a division of IDT

Internet Mobile Group (IIMG). An established leader in the comic book

and graphic novel marketplace, particularly in the horror, action, and

sci-fi genres, IDW Publishing also owns Jonas Publishing and its children‘s

imprint, Worthwhile Books. IDW lists some of the most successful and

hottest print titles in the industry in its portfolio, including:

television‘s #1 prime time series CSI:

Crime Scene Investigation; Sony’s Underworld; Paramount’s Star

Trek; Fox’s 24 and Angel, and Hasbro’s The

Transformers. The feature film version of IDW Publishing‘s

graphic novel, 30 Days of Night, recently topped the box office

when it premiered in October. The company also works with foreign

licensing agents to sell their comics around the world, with titles

being published in multiple languages and crossing dozens of regions.

ABOUT IDT INTERNET MOBILE GROUP:

IDT Internet Mobile Group (IIMG), a division of the Fortune 1000

telecommunications firm IDT

Corporation (NYSE: IDT, IDT.C), is a leader in the development,

management and growth of cross-platform consumer entertainment,

distribution and financial services. From providing mobile content to

consumers in over 200 countries through the mobile content portal Zedge (www.zedge.net)

to the creation, development and distribution of top graphic novels

through IDW Publishing, and providing cash remittance services via

mobile phones to millions of people living abroad, IIMG is dedicated to

turning innovative ideas and companies into products and services that

span various industries.

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 (NYSE: IDT, IDT.C) today announced that Stephen R. Brown

and Marc J. Oppenheimer are swapping portfolios in IDT‘s

management team. Mr. Brown is returning to his IDT roots as Chief

Financial Officer (CFO) and Treasurer. Mr. Oppenheimer is bringing his

operational discipline and prior experience to serve as IDT‘s

Chief Operating Officer (COO), and will focus on the company‘s

expanding operations in the energy sphere. In addition, Bill Pereira,

who has served as Senior Vice President of Corporate since 2006, has

been promoted to Executive Vice President (EVP) of Finance. Liore Alroy,

Chief Executive Officer of Net2Phone since 2004, has been appointed as

EVP of IDT Corporation.

“From time to time, we tap Steve Brown‘s

talents to guide the development of new ventures, but at the end of the

day, we always seem to want him back as our CFO,“

said Howard Jonas, IDT‘s Chairman and Founder. “On

many occasions, I have praised Steve‘s

capabilities as CFO, and once again we want him in that role as we

continue to navigate our way through uncharted waters. Marc Oppenheimer

will bring his strategic expertise to the COO post and we look forward

to his guiding hand on our diverse operations—particularly

our investments in energy.“

“We have seen Marc‘s

abilities up close as a board member at both IDT and Net2Phone, as our

lead independent director and most recently as our CFO,“

said Jim Courter, IDT‘s Vice Chairman and

Chief Executive Officer. “He can manage

diverse operations and provide the discipline necessary for each of our

division‘s management teams to contribute to

the overall mission and growth of IDT. Steve has been a great resource

to IDT and its shareholders and we look forward to having him at our

financial helm once again. As we deal with troubled times at some of our

mature businesses and seek to expand other operations, we believe that

having Steve and Marc in these respective roles is the best combination

of talents for creation of long-term value.“

About IDT Corporation

IDT

Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDT Energy operates an

Energy Services Company (ESCO) in New York State. IDT’s Capital division

incubates newer businesses, and the Company’s Spectrum subsidiary holds

its spectrum license assets. IDT Telecom provides retail and wholesale

telecommunications services and products, including pre-paid and

rechargeable calling cards, consumer local, long distance, and wireless

phone services, and wholesale carrier services. Under the Net2Phone

brand name, the Company also provides a range of voice over Internet

protocol (VoIP) communications services. IDT Capital’s operations

include receivables portfolio management and collection, ethnic food

distribution, brochure distribution, Internet Mobile Group, Net2Phone

Ventures and other initiatives. 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. While

these forward-looking statements represent IDT‘s

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. These risks and

uncertainties include, but are certainly not limited to the specific

risks and uncertainties discussed in our reports filed with the SEC. 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.

Popular Musicians Contribute Songs, Videos, And Images For Free
Download To Mobile Phones

Zedge (www.zedge.net), the popular

destination for user-generated mobile content, has partnered with more

than 60 labels, artists and managers, including B-Real from Cypress

Hill, DEVO, The Midnight Youth, Trin-I-Tee 5:7 and emerging artists such

as Irving, This City Sunrise and Steriogram, for its 12 RINGTONES

OF CHRISTMASpromotion. Much of the mobile content presented as

part of 12 Ringtones is available only on Zedge and only through

this campaign. The 12 Ringtones of Christmas campaign runs from

December 14, 2007 to January 14, 2008.

To access, fans go to the http://www.zedge.net/christmas

to discover featured artists and the entire roster of artists, with

profiles and free mobile content from each of them. From there, fans can

browse profiles, follow links to artist sites, and for those that want

to download wallpapers, videos and ringtones, there are links on each

page for all the content available from Zedge for that artist.

Along with their contributions, all artists created their very own

profile page they can share with other users. The profiles feature their

latest news, album drops, tour dates, biographies, and relevant links to

their own sites.

“12 Ringtones of Christmas represents a

new paradigm in the promotion and delivery of music and mobile content

to both Zedge users and all fans of great music. By partnering with top

managers, labels, and emerging artists, Zedge is bringing its 6.6

million users in 216 countries free ringtones, images and video—many

of which are available on mobile for the first time and only through

Zedge,“ said Moshe Berger, head of Zedge

Studios and CEO of its parent, IDT Internet Mobile Group (IIMG).

“The 12 Ringtones of Christmas campaign

is an example of how Zedge works with content owners to greatly increase

the visibility of their artists while providing a fun way for Zedge

users to ‘free their phones‘

with the hottest, exclusive mobile music content,“

said Mark Frieser, SVP of Marketing at IIMG.

Zedge represents a significant promotional opportunity for content

owners, with a large growing membership and a proven value to the

lucrative 16-24 market. In the year since IIMG acquired Zedge, the

service has experienced phenomenal growth, with a doubling of its

membership – from three million to 6.7 million

users, an increase of daily registrations of more than 95% to over

12,000 new members daily, and more than eight million pages viewed daily

on the site. Zedge members (Zedgers) download over 750,000 unique pieces

of content daily from the library of 1,000,000 items including

ringtones, images, themes, videos, screensavers and games.

About IDT Internet Mobile Group/Zedge Ltd.:

IDT Internet Mobile Group (IIMG), a division of the Fortune 1000

telecommunications firm IDT (NYSE: IDT, IDT.C), is a leader in the

development, management and growth of cross-platform consumer

entertainment, distribution and financial services. From providing

mobile content to consumers in over 200 countries through the mobile

content portal Zedge to the creation, development and distribution of

top graphic novels through IDW Publishing and providing cash remittance

services via mobile phones to millions of people living abroad, IIMG is

dedicated to turning innovative ideas and companies into products and

services that span various industries.

About IDT Corporation:

IDT

Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries.

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.