Newark, NJ – October 4, 2006 – To celebrate Hispanic Heritage Month, TúYo Mobile is slashing international rates to Latin America. Through October 31, 2006, international rates from the U.S. to Mexico are free. International rates to Peru and Brazil are just 1 cent per minute, and Venezuela, Chile, Colombia, Argentina and Honduras are 1.5 cents per minute. Domestic airtime charges from 10 cents a minute apply to all international calls. Calls must be made from a TúYo Mobile phone. A connection fee of 10 cents a call also applies. Additionally, low rates are available to other Latin American destinations. TúYo Mobile is IDT Telecom’s prepaid wireless service designed to meet the mobile calling needs of U.S. Hispanics. IDT Telecom is a subsidiary of IDT Corporation (NYSE:IDT, IDT.C), an international telecom and technology company.

“IDT has a proud history of providing the Hispanic community and other immigrant groups with high quality, low cost communications products,” said Jim Courter, IDT’s CEO. “We’re continuing that tradition with TúYo Mobile, IDT’s prepaid wireless service that makes it affordable to call Latin America and other international destinations.”

TúYo Mobile provides many features and services that are important to Hispanic consumers, including; direct international dialing, low rates to Latin America, state-of-the-art handsets, a fully bilingual customer experience, and country specific alerts featuring breaking news, sports, politics, and horoscopes. During Hispanic Heritage Month consumers can choose to receive free Spanish-language, text message news alerts from the Latin American country of their choice.

TúYo Mobile products and service are currently available at thousands of retail locations throughout the U.S. Customers can also purchase  TúYo Mobile on the web at www.tuyo.com. Recently, TúYo Mobile signed a distribution agreement with SAM’s CLUB a subsidiary of WalMart Corp. TúYo Mobile phones are now available in 22 SAM’s CLUB stores in Florida, Illinois, New Jersey, Nevada, and Texas.

About TúYo Mobile:

TúYo Mobile is a prepaid cellular service that does not require a contract or a credit check and has no hidden charges. TúYo Mobile is geared towards the U.S. Latino market; offering its customers a completely bilingual experience, direct international dialing, low rates to Latin America and culturally relevant content.  The TúYo Mobile brand name comes from a combination of the Spanish words “tú” (you) and “yo” (I or me). Together they form the word “TúYo” (yours). The brand’s marketing campaigns include TV, radio, print, outdoor advertising and community events focused on Spanish-speaking consumers. TúYo Mobile offers Latino consumers high-quality GSM handsets and a suite of international voice and data features at affordable prices. TúYo Mobile is sold at authorized stores in California, Illinois, Louisiana, Tennessee, Texas, New York, New Jersey, Connecticut, Florida, Washington, DC, Pennsylvania, and Maryland.

About IDT:

IDT Corporation is an innovative and opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services.  IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, ethnic food distribution, brochure distribution 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.

NEWARK, NJ- October 4, 2006 – Please join us for the IDT Corporation (NYSE: IDT, IDT.C) fourth quarter conference call when we report results for the three-month period ended July 31, 2006 and the full 2006 fiscal year, along with an update on our businesses. Our conference call is scheduled for Tuesday, October 10th at 4:30 PM (Eastern). An earnings release will be available prior to the call.

We are pleased to offer two ways to participate in the conference call – 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=109963.

You 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.

If you choose to participate via telephone, the dial-in number for domestic callers is (866) 594-2183, and for international callers (973) 935-8583. Conference ID # 7953101 will speed your connection to the call.  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) 519-4471, and for international callers at (973) 341-3080, both using Passcode # 7953101. 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 opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services.  IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, ethnic food distribution, brochure distribution 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.

ENGLEWOOD, Colo. and NEWARK, N.J., Sept. 29 — Liberty Media Corporation (LINTA, LCAPA) and IDT Corporation (NYSE: IDT, IDT.C) announced today the completion of the final stage of Liberty’s acquisition of IDT’s Entertainment Division. Today’s closing encompasses the division’s Australian and Canadian operations and follows the closing of the U.S. and U.K. operations which occurred on August 24, 2006.

Liberty Media Corporation is a holding company that owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty’s interests in QVC, Provide Commerce, IAC/InterActiveCorp and Expedia, and the Liberty Capital group, which includes all of Liberty’s assets that are not attributed to the Liberty Interactive group, including Liberty’s interests in Starz Entertainment Group and News Corporation.

Starz Entertainment Group LLC (SEG) is a premium movie service provider operating in the United States. SEG offers 16 movie channels including the flagship Starz® and Encore® brands with approximately 14.6 million and 26.4 million subscribers respectively. Starz Entertainment Group airs more than 1,000 movies per month across its pay TV channels and offers advanced services including Starz HDTV, Starz On Demand and Vongo(SM). Starz Entertainment Group is a wholly-owned subsidiary of Liberty Media Corporation that is attributed to Liberty Capital Group.

IDT Corporation is an innovative and opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, ethnic food distribution, brochure distribution 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.

Newark, N.J. — September 14, 2006 – IDT Telecom today announced that TúYo Mobile has signed a distribution agreement with SAM’S CLUB, a division of WalMart Stores, Inc. TúYo Mobile phones are now available in select SAM’S CLUB locations. TúYo Mobile is IDT Telecom’s prepaid wireless service specifically designed for the mobile communication needs of U.S. Hispanics. IDT Telecom is a subsidiary of IDT Corporation (NYSE:IDT, IDT.C) an international telecom and technology company.

Under terms of the agreement, TúYo Mobile phones will be available in 22 SAM’S CLUB locations in Florida, Illinois, New Jersey, Nevada and Texas.  The Clubs are located in areas with sizeable Hispanic populations. The Clubs will sell the Motorola V190 and Nokia 6030 phones. A complimentary $50 worth of talk time is included with the purchase of a phone. Select SAM’S CLUB locations will also distribute TúYo Mobile recharge cards.

“SAM’S CLUB is known for offering quality merchandise to its Members.  TúYo Mobile will fit right in,” said Jim Courter, IDT’s CEO.  “TúYo Mobile offers exceptional value, convenience and outstanding international calling rates from IDT, a name consumers have come to trust.”   

TúYo Mobile will also host promotional events in select SAM’S CLUB locations. TúYo Mobile representatives will be available to answer questions and explain the features and benefits of the prepaid phone service. Advertisements in local Spanish-language newspapers will provide more information about these events.

TúYo Mobile provides many features and services that are important to Hispanic consumers, including direct international dialing, low rates to Latin America, state-of-the-art handsets, a fully bilingual customer experience, and country specific alerts featuring breaking news, sports, politics, and horoscopes.

A key differentiator of TúYo Mobile is its aggressively priced rates to Latin America.  Rates per minute are as low as 2 cents to Mexico, Brazil and Argentina, and 3 cents to Chile, Colombia and Venezuela, plus airtime.  Domestic airtime is as low as 10 cents per minute.

About TúYo Mobile:

TúYo Mobile is a prepaid cellular service that does not require a contract or a credit check and has no hidden charges. TúYo Mobile is geared towards the U.S. Latino market, offering its customers  a completely bilingual experience, direct international dialing, low rates to Latin America and culturally relevant content. The TúYo Mobile brand name comes from a combination of the Spanish words “tú” (you) and “yo” (I or me). Together they form the word “TúYo” (yours). The brand’s marketing campaigns include TV, radio, print, outdoor advertising and community events focused on Spanish-speaking consumers. TúYo Mobile offers Latino consumers high-quality GSM handsets and a suite of international voice and data features at affordable prices. TúYo Mobile is sold at authorized stores in Chicago, Texas, New York, New Jersey, Connecticut, Washington, DC, Pennsylvania, and Maryland.

About IDT:

IDT Corporation is an innovative and opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, brochure distribution 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.

 

Newark, N.J., September 7, 2006 – IDT Corporation (NYSE: IDT, IDT.C) today announced that Pipex Communications plc has agreed to purchase IDT’s U.K.-based Toucan consumer phone services business for £20m in cash and £4m in Pipex stock. Pipex Communications plc (AIM: PXC.L) is a U.K.-based provider of integrated telecommunications and internet solutions including broadband, voice, domain name registrations and hosting.  

According to terms of the agreement, Pipex will assume Toucan’s existing customer base and the current employees supporting its operations.  IDT also expects to enter into certain commercial agreements with Pipex to continue providing international termination for the Toucan operation, as well as customer support. 

About IDT

IDT Corporation is an innovative and opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, brochure distribution 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.

About Pipex

Pipex is a multiple award-winning provider of integrated telecommunications and Internet services. With a broad customer base including small/home-offices and blue chip companies, Pipex provides a comprehensive range of consumer, business and corporate voice, broadband, security domain name registration and shared and dedicated hosting solutions.   Pipex’s focus is simple: enabling businesses and consumers to achieve their aspirations through proven communications services and emerging technologies. This is achieved through an extensive portfolio of high-speed Internet connectivity, managed services and hosting, security and voice products – combining exceptional performance, innovation and a commitment to customer service. 

Owning one of the UK’s most extensive communication networks, Pipex boasts more than 100 Points of Presence (PoPs) nationwide. In addition, state-of-the-art data centres, which are manned and monitored 24×7, ensure the security of Pipex’s customers’ business critical applications. Its commitment to investing in its technology infrastructure ensures that Pipex continues to deliver the most scalable, resilient, secure and reliable services.

NEWARK, N.J. – September 1, 2006 – IDT Corporation, (NYSE: IDT, IDT.C), announced today that its presentation at the Jefferies 4^th Annual Communications Conference on Tuesday, September 12, 2006 at 10:45 a.m. will be accessible through webcast during the presentation.  To listen to the presentation live, connect to the following link up to 15 minutes prior to the commencement of the presentation: http://www.wsw.com/webcast/jeff12/idt/.    The webcast will also be available at the above link for 90 days following the conference.   As well, associated presentation materials will be posted on the Investor Relations section of the IDT Corporation website, www.idt.net, within the Presentations tab.

 

About IDT Corporation:

IDT Corporation is an innovative and opportunistic 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’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. Through Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services.

IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, brochure distribution 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.

Englewood, CO and Newark, NJ, August 24, 2006 –– Liberty Media Corporation (NASDAQ:LINTA, LCAPA) and IDT Corporation (NYSE: IDT, IDT.C) announced today that they have completed the first stage of the previously announced acquisition by Liberty of IDT’s Entertainment Division. Today’s closing encompasses all of the U.S. and certain international operations.  The parties expect that the remainder of the transaction comprising the sale of the Canadian and Australian operations will occur in the next several weeks after certain regulatory approvals have been obtained and customary closing conditions have been satisfied. IDT’s Entertainment Division will be combined with Liberty subsidiary Starz Entertainment Group and will be attributed to the Liberty Capital Group.

“Joining IDT Entertainment and Starz will allow both to benefit and grow as part of an integrated media organization with substantial programming production capabilities and access to all distribution outlets,” said Liberty president and CEO Gregory B. Maffei.  “And this transaction advances our strategy of converting passive assets into operating business units.”

“In a few short years, IDT Entertainment grew from a start-up to a producer and distributor of first class animated and live action programming,” said Jim Courter, CEO of IDT Corporation. “The next phase of its development will be directed by Liberty Media, a company with a record for realizing the potential of media and entertainment assets.”

Liberty Media Corporation is a holding company that owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty’s interests in QVC, Provide Commerce, IAC/InterActiveCorp and Expedia, and the Liberty Capital group, which includes all of Liberty’s assets that are not attributed to the Liberty Interactive group, including Liberty’s interests in Starz Entertainment Group and News Corporation.

Starz Entertainment Group LLC (SEG) is a premium movie service provider operating in the United States. SEG offers 16 movie channels including the flagship Starz® and Encore® brands with approximately 14.6 million and 26.4 million subscribers respectively. Starz Entertainment Group airs more than 1,000 movies per month across its pay TV channels and offers advanced services including Starz HDTV, Starz On Demand and Vongo(SM). Starz Entertainment Group is a wholly-owned subsidiary of Liberty Media Corporation that is attributed to Liberty Capital Group. www.Starz.com.

IDT Corporation (“IDT”) is a multinational company that operates its businesses through its subsidiary divisions.  Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. 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. Through IDT’s recent purchase and integration of Net2Phone, the company also provides a range of voice over Internet protocol (VoIP) communications services.   IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, brochure distribution and other smaller 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.

NEWARK, N.J. – June 15, 2006 – IDT Corporation (NYSE: IDT, IDT.C) today announced that its Board of Directors has authorized a stock repurchase program providing for the repurchase of up to twenty-five million (25,000,000) shares of Class B Common Stock and Common Stock without regard to class. IDT’s Class B Common Stock and Common Stock trade on the New York Stock Exchange under the symbols “IDT” and “IDT.C’, respectively. There are currently 70,980,070 shares of IDT Class B Common Stock outstanding and 15,453,073 shares of IDT Common Stock outstanding.

The Board of Directors also authorized the termination of IDT’s previous stock repurchase program, under which IDT had authority to purchase an additional 1.9 million of shares of Common Stock and 11.7 million of shares of Class B Common Stock.

About IDT

IDT Corporation, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom, by means of its own international telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. IDT Entertainment is the IDT subsidiary focused on developing, acquiring, producing and distributing computer-generated and traditionally animated productions and other productions for the film, broadcast and direct-to-consumer markets. IDT Capital is the IDT division principally responsible for the Company’s initiatives in brochure distribution, retail energy and new technologies. Net2Phone, Inc., a subsidiary of IDT Corporation, is a provider of high-quality global retail Voice over IP services and offers a fully outsourced cable telephony service to cable operators allowing cable operators to provide residential phone service to their subscribers. 

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.

 

Important Note: In this press release, all statements that are not purely about historical facts, including, but not limited to, those include 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, including, but not limited to, those described in IDT’s 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 and other filings IDT may make with the SEC.

Newark, NJ and Mountain View, CA June 8, 2006 – IDT Telecom, a subsidiary of international telecom and technology company IDT Corporation (NYSE: IDT, IDT.C), and VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced a multi-year agreement to jointly market advanced services to mobile operators.

IDT Telecom will offer VeriSign’s Inter-Carrier Short Messaging Service (SMS), Multi-Media Messaging Service (MMS) and Voice Roaming Settlement and Exchange services in the emerging markets of Eastern Europe, Africa, Asia, Central America and Latin America. The services will facilitate interoperability between disparate carrier networks and devices. 

The combination of IDT’s extensive market reach in emerging markets and VeriSign’s managed communications services will enable mobile operators to introduce innovative messaging, roaming and premium content services that can help increase revenue and loyalty.

“International and domestic phone companies rely on IDT for our efficient, reliable and cost-effective routing solutions,” said Yona Katz, CEO of IDT Telecom. “Now in conjunction with VeriSign, IDT can provide mobile operators more comprehensive solutions that meet advanced voice and data networking needs.”

“VeriSign’s intelligent infrastructure services are playing a significant role in the growth of next-generation communications, commerce and content for wireless and wireline providers globally,” said Vernon Irvin, executive vice president and general manager, VeriSign Communications Services. “This relationship with IDT Telecom will help VeriSign add customers in fast-growing emerging markets such as Eastern Europe and Africa.”

IDT Telecom currently uses a number of VeriSign Communications and Database services in the United States, including its Signaling System 7 (SS7) services. 

About IDT

IDT Corporation (NYSE: IDT; IDT.C) through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom, by means of its own international telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. IDT Capital is the IDT division principally responsible for the Company’s initiatives in brochure distribution, retail energy and new technologies. Net2Phone, Inc., a subsidiary of IDT Corporation, is a provider of high-quality global retail Voice over IP services and offers a fully outsourced cable telephony service to cable operators allowing cable operators to provide residential phone service to their subscribers.

About VeriSign 
VeriSign, Inc. (Nasdaq: VRSN) operates intelligent infrastructure services that enable and protect billions of interactions every day across the world’s voice and data networks. Additional news and information about the company is available at www.verisign.com.

Trademarks 
VeriSign and other trademarks, service marks and logos are registered or unregistered marks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. Copyright © 2006 VeriSign, Inc. All rights reserved.

Forward Looking Statement

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause IDT’s or VeriSign’s actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, in the case of Verisign, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as the risk that VeriSign’s announced strategic relationships, including the relationship described herein may not result in additional customers, profits or revenues; and increased competition and pricing pressures. More information about potential factors that could affect VeriSign’s business and financial results is included in VeriSign’s filings with the Securities and Exchange Commission, including in the company’s respective Annual Reports on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q.  More information about potential factors that could affect IDT’s business and financial results is included in IDT’s filings with the Securities and Exchange Commission. Neither IDT nor VeriSign undertakes any obligation to update any of the forward-looking statements after the date of this press release.

NEWARK, NJ — June 7, 2006 — IDT Corporation (NYSE: IDT, IDT.C) announces operating results for the third quarter of fiscal 2006, the three months ended April 30, 2006. 

• Revenues: $589.1 million, down 0.5% year over year.
• Net loss: $8.6 million, versus $14.3 million one year ago.
• Diluted earnings per share: ($0.09), versus ($0.15) one year ago.
• Cash, cash equivalents, restricted cash and marketable securities totaled $708.8 million as of quarter end.

The following table summarizes the operating performance of IDT’s business segments¹:

 

		Revenues			Income (Loss) from Operations
$ millions	Q3 ’06	Q2 ’06	Q3 ’05		Q3 ’06	Q2 ’06	Q3 ’05
IDT Retail Telecom	$364.0	$368.2	$375.6		($44.4)	($4.1)	$10.9
IDT Wholesale Telecom	121.1	128.8	140.7		(7.6)	(7.3)	(4.5)
IDT Telecom Total	485.1	497.0	516.3		(52.0)	(11.4)	6.4
IDT Entertainment	41.8	48.4	46.0		(4.9)	0.2	3.1
Voice over IP	24.0	25.1	17.1		(14.2)	(9.4)	(11.5)
IDT Capital	37.7	43.4	11.1		(3.2)	(3.8)	(3.3)
IDT Solutions	0.3	1.7	1.6		(3.7)	(18.4)	(8.8)
Corporate	–	–	–		(12.9)	(14.3)	(15.4)
Total IDT	$589.1	$615.7	$592.1		($91.0)	($57.1)	($29.5)

  DEVELOPMENTS

·         On February 17, we executed a merger agreement with Net2Phone, following which it became a wholly owned subsidiary of IDT.  Net2Phone is presently being integrated into our Telecom division.
·         On February 28, we completed the sale of our Russian telecom business, Corbina, to a group of private equity investors, from which IDT realized net proceeds of approximately $129.9 million.
·         On May 15, we announced that Liberty Media entered into a binding term sheet to acquire IDT Entertainment, in exchange for its present holdings in IDT (which include 17.2 million Class B shares), $186 million in cash, and assumption of IDT Entertainment’s debt.  The agreement is expected to close during the fourth quarter, subject to certain adjustments and approvals.
·         On May 22, our previously announced tender offer for outstanding employee options expired, with 7.9 million options tendered at $2.00 each.
·         Towards the end of the third quarter, we initiated a company-wide restructuring and cost savings program, which has resulted in the elimination of approximately 375 positions to date, of which 270 were customer service related.  Through May 31, these reductions have resulted in approximately $14 million in severance costs, of which $5.2 million has been recorded as restructuring charges in the third quarter.  Savings resulting from the restructuring efforts to date are estimated to be approximately $15-20 million per year, and will begin to be reflected in our operating results as we enter fiscal 2007.

RESULTS OF OPERATIONS

In addition to the standard Line of Business detail, which has historically been included in the earnings release and follows, an additional line of business report for the telecom business is included as an addendum at the end of this release. This is designed to provide enhanced disclosure of the results of our core operating businesses, as compared to other non-core operations including our new initiatives.

IDT Telecom Line of Business Detail1
			Revenues				Gross Profit Margin
	$ millions	Q3 ’06	Q2 ’06	Q3 ’05			Q3 ’06	Q2 ’06	Q3 ’05
	Calling Cards	$301.7	$301.6	$292.5			7.7%	20.4%	21.0%
	Consumer Phone Services	62.3	66.7	83.1			41.6%	44.3%	47.8%
	Total Retail	364.0	368.2	375.6			13.5%	24.7%	27.0%
	Wholesale	121.1	128.8	140.7			8.2%	8.6%	9.3%
	Total Telecom	$485.1	$497.0	$516.3			12.2%	20.5%	22.2%

IDT Telecom

Calling Cards

Calling card revenues were unchanged versus the second quarter of fiscal 2006, and increased 3.2% when compared to last year’s third quarter. During the quarter, we decided to institute selective price increases on cards in the U.S. and Europe, in an effort to improve gross margins, resulting in improved revenue-per-minute price realizations in both the U.S. and Europe. However, when compared to the second quarter, the higher price realizations were offset by a decline in minute volumes, which was partly due to the third quarter having fewer days than does the second quarter.  

In the third quarter the U.S. calling card business recorded a $48.1 million accrual for the potential past liability of various telecom regulatory agency fees stemming from: Telecommunications Relay Services Fund (TRS), Federal Communications Commission (FCC) and Universal Service Fund (USF) for the period through April 30, 2006. This accrual adjusts to what management believes at this time to be our maximum potential liability to all such agencies, given the methodologies used by the Universal Service Administration Corporation (USAC) for calculation of USF related fees, in its recently completed audit of our calling card business for calendar years 2000-2004.  IDT has filed an appeal related to the audit findings, and will vigorously contest the imposition of any of these fees.

Due to this accrual, gross margins in our calling card business decreased to 7.7% in the third quarter from 20.4% in the second quarter.  Excluding the effect of this accrual, calling card gross margins in the third quarter were higher than in both the second quarter and last year’s third quarter, as the higher price-per-minute realizations, which occurred as the average cost-per-minute remained relatively unchanged, yielded an improved gross profit-per-minute in both the U.S. and Europe.  Going forward, we expect the calling card business to maintain the improved, pre-accrual gross margins we experienced this quarter.

Consumer Phone Services (CPS)

Consumer phone services revenues were 6.6% lower than those recorded in the second quarter, and 25.1% lower than the year ago period, reflecting a continued decline in our U.S. customer base during both periods, which outweighed the growth in our European bundled telecommunications services business over those same periods.

The customer base for our U.S. bundled unlimited local and long distance phone service was approximately 165,000 as of April 30, 2006, compared to 188,000 customers as of January 31, 2006.  The customer base for long distance-only service stood at 266,000 at the end of the third quarter, as compared to 278,000 at the end of the second quarter.  These declines, particularly in our bundled offering, are a direct result of our decision to stop marketing the service early in calendar 2005 following the FCC’s abolishment of the UNE-P pricing regime, which has made it uneconomical for competing carriers, such as IDT, to attract new customers.

Toucan, the brand name under which we offer bundled telecommunications services in the U.K. and the Netherlands, provided service to approximately 186,000 customers subscribing to more than 221,000 services (including local, long distance, broadband and mobile) as of April 30, 2006, as compared to 162,000 customers subscribing to 191,000 services at the end of the second quarter. Within our CPS business lines, we expect the trend of lower U.S. revenue and higher European revenue to continue in the fourth quarter and into fiscal year 2007.

Wholesale Carrier

Wholesale carrier revenues decreased 6.0% sequentially, and 13.9% from the third quarter a year ago.  On a sequential basis, minute volumes were lower than the previous quarter as a result of fewer selling days.  In both periods, per-minute price realizations continued to decline, outweighing declines in per-minute costs, leading to a decline in per-minute gross profits.  With relatively fixed circuit-related costs remaining largely unchanged across all periods, wholesale carrier gross margins declined to 8.2% in the third quarter, versus 8.6% in the second quarter, and 9.3% in last year’s third quarter. Going forward, we believe that revenues for our wholesale carrier unit will stabilize in the range of $120-125 million per quarter, with some small margin improvements over the third quarter’s level.

IDT Entertainment

Revenues for IDT Entertainment declined 13.6% from the second quarter, and 9.0% from the third quarter one year ago.  These declines were driven by reduced revenue in our home video distribution business, resulting primarily from a release calendar that had substantially fewer new releases in this quarter as compared to the same period in the prior year.  Additionally, revenue in our work-for-hire business has declined consistent with our previously discussed strategy of de-emphasizing service work in favor of developing our own intellectual property.  Gross margins were 34.1% for the quarter, down slightly from 34.7% in the second quarter.

Our feature film division remains on track, with our first computer generated animation film, “Everyone’s Hero” scheduled to reach over 2,000 domestic theaters the weekend of September 15, 2006.  During the quarter, our second film, “Space Chimps,” was also announced.  This film is being produced in conjunction with Vanguard Animation, and is scheduled for release in 2008.

IDT Capital

IDT Capital’s revenues declined 13.0% sequentially, and increased 240.8% versus the year ago period.  The sequential decline resulted from the seasonal nature of IDT Energy’s business, while the increase in the year over year period is reflective of the quick revenue ramp up of this business during the past year.  As of the end of the third quarter, IDT Energy serviced approximately 165,000 total meters in New York State, compared to 132,000 meters at the end of the second quarter.

IDT Solutions

IDT Solutions, the operating segment, that now contains IDT Spectrum, had minimal revenues during the quarter, as management continued to work on securing a contract for wireless data backhaul from a mobile network operator.  Gross margins for the business turned positive in the third quarter as a result of the sale of the remaining Winstar business in the second quarter.  IDT Spectrum continues to explore various strategic alternatives in the capital markets to unlock the value of its spectrum assets.

Telecom Line of Business- Addendum

The table below is being provided in addition to the Telecom Line of Business Detail provided earlier in this release, in an effort to provide increased visibility to the operating businesses within IDT Telecom.

The new Telecom Line of Business addendum separates operational performance within our Consumer Phone Services business geographically, between the U.S. and Europe, each an independent business.  In addition, an Other category has been separated out from our Calling Card business.  The Other category contains the operational results of many of the new initiatives presently being operated within IDT Telecom.

 

^* Calling card gross profits and gross margins as shown include the effect of the $48.1 million regulatory fee accrual taken in the third quarter of fiscal 2006.

IDT CONFERENCE CALL INFORMATION

 Conference call today, June 7, 2006, at 8:30 AM Eastern Time.

·          From the U.S., (866) 594-2183; passcode: 7450880.

·          International callers, (973) 935-8583; passcode: 7450880.

·          Replay available for one week at

o         (877) 519-4471, passcode: 7450880 for domestic callers,

o         or (973) 341-3080, passcode: 7450880 for international callers.

·          Webcast of the conference call 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’s Presentations 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, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom, by means of its own international telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. IDT Entertainment is the IDT subsidiary that is focused on developing, acquiring, producing and distributing computer-generated and traditionally animated productions and other productions for the film, broadcast and direct-to-consumer markets. IDT Capital is the IDT division principally responsible for IDT‘s initiatives in radio broadcasting, brochure distribution and new technologies. Net2Phone, Inc., a subsidiary of IDT Corporation, is a provider of high-quality global retail Voice over IP services and offers a fully outsourced cable telephony service to cable operators allowing cable operators to provide residential phone service to their subscribers. 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 the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statements or risk factors.

Footnotes

¹   Columns in tables may not add due to rounding.