Englewood, CO and Newark, NJ – May 16, 2006—  Liberty Media Corporation (NASDAQ: LINTA, LCAPA) and IDT Corporation (NYSE: IDT, IDT.C) announced today that they have entered into a binding term sheet for the sale of IDT Entertainment to Liberty Media for all of Liberty Media’s interests in IDT, $186 million in cash and the assumption of existing indebtedness.  With this acquisition, Liberty Media’s Starz Entertainment Group will have the capability to create a wide array of CG animated and live action programming for domestic and international distribution in all major channels, including broadcast syndication, premium television, theatrical, and home video/DVD.

Gregory B. Maffei, CEO of Liberty Media, said “This transaction furthers our strategy of converting investments into strategic operating businesses that have synergies with our current companies.  IDT Entertainment and Starz is a great combination.  We have appreciated our long friendship with IDT and look forward to the next phase of our partnership.”

“John Malone has been a great mentor and friend. I anticipate great things from our continuing business relationship,” said Howard Jonas, IDT’s Chairman.

“This is a union of two companies that have complementary strengths and share the entrepreneurial spirit essential for success in the rapidly changing world of video production and distribution,” said SEG President and CEO Robert B. Clasen.  “With the addition of the dynamic, creative team at IDT Entertainment, our company will be positioned to capitalize fully on the opportunities afforded by the new era of content.” 

“In just three years, we have built IDT Entertainment into a strong, vertically integrated entertainment company,” said Jim Courter, IDT’s CEO. “We are capitalizing on the value we have created in this business in order to allow us to generate an attractive return for our shareholders.   We believe that Liberty Media’s Starz Entertainment Group is the right company to realize IDT Entertainment’s full potential.” 

IDT Entertainment CEO Morris Berger said, “Combining with Starz will provide new avenues of distribution for our expanding slate of CG animated and live action content.”  IDT Entertainment Chairman Steve Brown added, “Our outstanding creative team looks forward to bringing the IDT Entertainment experience to millions of new viewers via the Starz services.”

On closing, which the parties expect to occur within the next three months, Liberty Media will pay to IDT $186 million in cash, subject to certain adjustments, and all of Liberty Media’s equity interests in IDT and its subsidiaries, including approximately 17.2 million shares of IDT’s Class B common stock and Liberty Media’s approximate 5% interest in IDT Telecom.  Liberty will also assume IDT Entertainment’s existing indebtedness.  IDT will be entitled to receive additional consideration from Liberty based upon the appreciation in value of IDT Entertainment over the five year period following closing.  In addition, on closing, IDT Entertainment and Starz will enter into a five year programming output agreement for the broadcast on Starz’s premium channels certain IDT Entertainment’s proprietary CG animated theatrical releases and live action programming.  The transaction is subject to certain customary conditions and contingencies, including the finalization and execution of definitive documentation and the receipt of regulatory approvals.

Liberty Media owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. It owns or has interests in some of the world’s most recognized and respected brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia 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, 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.

Newark, N.J., May 16, 2006 – IDT Corporation (NYSE:IDT, IDT.C) today announced that the expiration date for the offer to purchase from eligible optionees outstanding stock options to purchase shares of IDT Class B common stock for $2.00 per share in cash has been extended to Monday, May 22, 2006 at 5:00 p.m., New York City time.  As disclosed in a separate release issued by IDT today, IDT has announced that it has entered into an agreement with Liberty Media Corporation to sell its IDT Entertainment division.  IDT is extending the offer to provide option holders with the opportunity to consider that development before making a determination as to whether to tender their options in the offer.  As stated in the other release, the transaction is subject to a number of contingencies.  We urge all option holders to consider in full all information disclosed about that transaction and the implications it may have on their decision to tender.  On the expiration date, all validly tendered options not previously withdrawn will be accepted for purchase pursuant to the terms of the offer and paid for promptly thereafter.  As of 5:00 p.m. New York City time on May 15, 2006, options to purchase 7,518,253 shares of IDT Class B common stock had been tendered in the offer.

This press release is intended for informational purposes only and is not an offer to buy, a solicitation of an offer to sell or a recommendation to sell any options to purchase shares of Class B common stock. The solicitation of offers to sell options to purchase shares of Class B common stock is made pursuant to a tender offer statement on Schedule TO as amended, an offer to purchase as amended and related materials filed with the SEC.  Holders of options are urged to read the tender offer statement, the offer to purchase, and other relevant documents filed with the SEC because they contain important information. Holders of options can obtain the tender offer statement and other publicly filed documents without charge from the web site maintained by the SEC at www.sec.gov or from IDT without charge by directing a request to IDT Corporation, 520 Broad Street, Newark, New Jersey, Attention: Investor Relations, Telephone: (973) 438-1000. A copy of this press release will be available on IDT‘s website at www.idt.net in the “About IDT“ Press Releases section.

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.

Newark, N.J., April 28, 2006 – IDT Corporation (NYSE: IDT, IDT.C) today announced that the expiration date for the offer to purchase from eligible optionees outstanding stock options to purchase shares of IDT Class B common stock for $2.00 per share in cash has been extended to Monday, May 15, 2006 at 5:00 p.m., New York City time.  In addition, the offer to purchase has been amended to provide that an optionee is eligible to participate in the offer if such optionee was an employee or director of, or consultant to, IDT or one of our subsidiaries on February 1, 2006, and maintained that status through 5:00 p.m., New York City time on March 24, 2006, the initial expiration date rather than the final expiration date.  On the expiration date, all validly tendered options not previously withdrawn will be accepted for purchase pursuant to the terms of the offer and paid for promptly thereafter.  As of 5:00 p.m. New York City time on April 27, 2006, options to purchase 7,155,441 shares of IDT Class B common stock had been tendered in the offer.

This press release is intended for informational purposes only and is not an offer to buy, a solicitation of an offer to sell or a recommendation to sell any options to purchase shares of Class B common stock. The solicitation of offers to sell options to purchase shares of Class B common stock is made pursuant to a tender offer statement on Schedule TO as amended, an offer to purchase as amended and related materials filed with the SEC.  Holders of options are urged to read the tender offer statement, the offer to purchase, and other relevant documents filed with the SEC because they contain important information. Holders of options can obtain the tender offer statement and other publicly filed documents without charge from the web site maintained by the SEC at www.sec.gov or from IDT without charge by directing a request to IDT Corporation, 520 Broad Street, Newark, New Jersey, Attention: Investor Relations, Telephone: (973) 438-1000. A copy of this press release will be available on IDT‘s website at www.idt.net in the “About IDT“ Press Releases section.

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.

Los Angeles, CA and Newark, N.J., April 12, 2006 – Vanguard Animation and IDT Entertainment have announced the launch of production of their new all CG-animated feature film, SPACE CHIMPS.  The comedy, which follows the galactic misadventures of a hapless descendant of the first chimps in space, will be distributed domestically through IDT Entertainment’s multi-picture deal with Twentieth Century Fox. IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment and technology company.

            “We have developed this project over the past several years with extremely talented writers and I’m thrilled with the result,” says the film’s producer and Vanguard CEO John H. Williams (Shrek).  “We’ve put enormous time and creative energy into the evolution of the characters, the look of the film, and the story arc, and we’re convinced we have a franchise film.”

            “We’re delighted that Space Chimps is now underway,” says Morris Berger, IDT Entertainment CEO.  “This comedic family entertainment has everything we look for in the films we produce including enthralling storytelling and engaging characters.  We’re looking forward to a terrific collaborative experience.”  

            Norton Virgien (The Rugrats Movie, Rugrats Go Wild!) and Donovan Cook (Mickey, Donald, Goofy: The Three Mouseketeers) will direct.  The writer is Kirk DeMicco, whose credits include last year’s comedy Racing Stripes, The Twits, in development for Vanguard/Disney  (co-writing with John Cleese), and the upcoming Crood Awakening for Aardman and DreamWorks.  Other writers are Jason Venokur, Dave Goetsch, & Ross Venokur.

            Extensive character design and storyboarding are currently underway in Vancouver, BC at IDT Entertainment and Vanguard’s state-of-the-art CG animation studio. 

            John Williams is the Producer, Curtis Augspurger is Co-Producer, Tom Jacomb is Associate-Producer, and Eric Bennett and Neil S. Braun are Executive Producers for Vanguard Animation.  Morris Berger, Stephen R. Brown, Janet Healy and Jerry Davis are Executive producers for IDT Entertainment.  Space Chimps is an IDT Entertainment presentation of a Vanguard Animation film. Odyssey Entertainment has sold the film in all major international territories.

Neil Braun, IDT Entertainment’s President of Feature Films and Television, continues to serve as President and Chief Operating Officer of Vanguard Animation.  IDT Entertainment owns approximately 23% of Vanguard Animation.

Vanguard Animation/Vanguard Films is a film and animation production company which produced The Tuxedo with Jackie Chan for DreamWorks and Seven Years in Tibet with Brad Pitt for Sony.  Vanguard’s first independently financed animated feature film, Valiant, was distributed domestically by Disney in 2005 and debuted on DVD in December, 2005.  Vanguard’s next CG animated film with the Berliner Film Center and Berlin Animation Fund, Happily N’Ever After, has just wrapped production.

 

IDT Entertainment is a vertically integrated entertainment company that develops, produces, and distributes proprietary and licensed entertainment content.  The company’s first CG feature film, Everyone’s Hero, distributed through Twentieth Century Fox, premieres nationwide on September 15^th.  IDT Entertainment is a division of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment and technology company. 

 

 

Newark N.J., April 11, 2006 – IDT Corporation today announced the appointment of Marc J. Oppenheimer to its Corporate Board of Directors. Mr Oppenheimer, who will serve on the audit committee, replaces Michael Levitt, who left the board in March 2006. IDT Corporation (NYSE: IDT, IDT.C) is an international telecom, entertainment and technology company.

Mr. Oppenheimer joins IDT outside board members, J. Warren Blaker, Rudy Boschwitz, Saul K. Fenster, James S. Gilmore III, Thomas Slade Gorton III, Jack F. Kemp, and Jeane Kirkpatrick. Marc Oppenheimer recently served on the Board of Net2Phone, a subsidiary of IDT Corporation.

“During his 26 year career Marc Oppenheimer has held significant operating and financial positions in banking, industry and investment management,” said Jim Courter, IDT’s CEO. “His appointment adds another high caliber, strongly independent, and highly distinguished individual to our corporate board. Specifically, Marc will serve as the board’s financial expert as required under the Sarbanes-Oxley Act.”

Mr. Oppenheimer is presently Executive Vice President of Kenmar Global Investment Management, Inc, and a Managing Director of Kenmar-Nihon Venture Capital, LLC. Kenmar is a global asset management firm. Previously he was President and Chief Executive Officer of Crystallex International Corporation, an international gold mining company primarily focused in Venezuela. Mr. Oppenheimer also served as Director of Trade and Merchant Banking for the Midlantic National Bank, N.A. and was Chief Financial Officer of Superior Steel. He began his financial career as a credit officer at The Chase Manhattan Bank N.A. Mr. Oppenheimer has a B.S. with Honors in Management and Industrial Relations from New York University and a MBA with Honors in Finance from New York University.

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.

Burbank, CA and Newark, N.J., April 5, 2006 – IDT Entertainment is pleased to announce the appointment of Chris McGurk to the newly created post of Senior Advisor, New Ventures.  Mr. McGurk’s longtime career in the entertainment industry includes stints atop MGM, Universal Pictures, and the Walt Disney Company Motion Picture Group.  In his position as senior advisor, Mr. McGurk will focus his industry experience on leveraging IDT Entertainment’s assets to build a new live action theatrical production and distribution arm.  He will report to IDT Entertainment CEO Morris Berger and will work closely with the company’s roster of senior executives to maximize current productions across all platforms and to identify and propose potential new ventures.  IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment and technology company.

“In putting together our executive team we look for multi-dimensional thinkers who can lead our company with the wisdom of experience and the passion of an entrepreneur,” says Stephen R. Brown, IDT Entertainment Chairman.  “Chris McGurk is obviously one of those unique individuals.  He has been a driving force of the entertainment industry’s major new developments of the past two decades.  That kind of innovative thinking is perfectly in sync with IDT Entertainment’s ‘outside the box’ philosophy and we’re thrilled to have him on board.” 

“IDT Entertainment has assembled an impressive executive team and has acquired a group of core entertainment assets that bodes well for the future,” says Mr. McGurk.  “I very much look forward to helping the company build from that outstanding base. Our goal, in both the content and distribution arenas, is to become a fully integrated media company uniquely positioned for ongoing success in the digital age.”

“Chris McGurk is one of the most gifted and accomplished executives in the entertainment industry,” says IDT Entertainment CEO Morris Berger.  “In essence, he will act as our own ‘entrepreneur-in-residence.’ He’s a tremendous addition to our roster of esteemed industry executives and we’re thrilled that he will bring his business vision, comprehensive knowledge, and peerless contacts to IDT Entertainment.  With his arrival and the business lines he will pursue we are poised to become a more complete studio.”     

As Vice Chairman and Chief Operating Officer of MGM from 1999 to Spring of 2005, Mr. McGurk had responsibility for all corporate functions and operating divisions of the company including the studio’s film and television production and distribution units, all global home entertainment, consumer products merchandising, music, networks and interactive groups, and all financial, legal and human resources functions.

Among the films under Mr. McGurk’s guidance while heading MGM were Hannibal, Legally Blonde, The World Is Not Enough, the Barbershop franchise and Die Another Day, the most successful Bond release ever.

The Academy Award™ winners No Man’s Land and Bowling for Columbine were developed and produced under his auspices and he guided the development of Hotel Rwanda, which was nominated for three Academy Awards.  Capote, nominated for five Academy Awards and this year’s winner for “Outstanding Lead Actor,” was developed and produced during Mr. McGurk’s tenure.  

Mr. McGurk was President and Chief Operating Officer at Universal from late 1996 to1999.  He was responsible for all operating and planning activities for the Motion Picture Group, as well as all international operations, worldwide home entertainment, exhibition (UCI and Loew’s Cineplex), October Films and Polygram Filmed Entertainment.

Prior to his tenure at Universal, Mr. McGurk spent eight years at The Walt Disney Studios (1988-1996), including a two year stint as President of the company’s Motion Picture Group.  In this role, he oversaw all business and operating activities including international theatrical distribution, film acquisitions, Miramax Films, Hollywood Records, and Disney live theatrical productions. 

Before Disney, Mr. McGurk held key posts in finance, sales, marketing and planning at Pepsico, Inc. before advancing to Chief Financial Officer of Pepsi Cola East. 

Mr. McGurk is a member of the Academy of Motion Picture Arts & Sciences and serves on its Executive Branch Committee and is also a member of the Academy of Television Arts & Sciences.  He serves on numerous industry-related and charitable organizations.  Mr. McGurk and his wife Jamie received the H.E.L.P. Group’s “Spirit of Hope Award” in 2002 and its “Leader of Vision” award in 2003. Mr. McGurk holds a B.S. degree, summa cum laude, from the Syracuse University School of Management and a M.B.A. degree from the University of Chicago Graduate School of Business.

Mr. McGurk will be based in IDT Entertainment’s new West Coast headquarters in Burbank.   

IDT Entertainment is a vertically integrated entertainment company that develops, produces, and distributes proprietary and licensed entertainment content.  Its first CG animated feature film, Everyone’s Hero, with a voice cast led by Whoopi Goldberg, Rob Reiner, Brian Dennehy, William H. Macy, Raven Symone, and Mandy Patinkin, will premiere on September 15 through its multi-picture distribution deal with Twentieth Century Fox.  

Important Note:  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, 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, N.J., April 5, 2006 – IDT Corporation (NYSE:IDT, IDT.C) today announced that the expiration date for the offer to purchase from eligible optionees outstanding stock options to purchase shares of IDT Class B common stock for $2.00 per share in cash has been extended to Friday, April 28, 2006 at 5:00 p.m., New York City time. On the expiration date, all validly tendered options not previously withdrawn will be accepted for purchase pursuant to the terms of the offer and paid for promptly thereafter. As of 5:00 p.m. New York City time on April 5, 2006, options to purchase 7,100,336 shares of IDT Class B common stock had been tendered in the offer.

This press release is intended for informational purposes only and is not an offer to buy, a solicitation of an offer to sell or a recommendation to sell any options to purchase shares of Class B common stock. The solicitation of offers to sell options to purchase shares of Class B common stock is made pursuant to a tender offer statement on Schedule TO as amended, an offer to purchase as amended and related materials filed with the SEC. Holders of options are urged to read the tender offer statement, the offer to purchase, and other relevant documents filed with the SEC because they contain important information. Holders of options can obtain the tender offer statement and other publicly filed documents without charge from the web site maintained by the SEC at www.sec.gov or from IDT without charge by directing a request to IDT Corporation, 520 Broad Street, Newark, New Jersey, Attention: Investor Relations, Telephone: (973) 438-1000. A copy of this press release will be available on IDT’s website at www.idt.net in the “About IDT” Press Releases section.

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.

Newark, N.J., March 24, 2006 – IDT Corporation (NYSE:IDT, IDT.C) today announced that the expiration date for the offer to purchase from eligible optionees outstanding stock options to purchase shares of IDT Class B common stock for $2.00 per share in cash has been extended to Wednesday, April 5th at 5:00 p.m., New York City time.  On the expiration date, all validly tendered options not previously withdrawn will be accepted for purchase pursuant to the terms of the offer and paid for promptly thereafter. As of 5:00 p.m. New York City time on March 23, 2006, options to purchase 6,070,444 shares of IDT Class B common stock had been tendered in the offer.

This press release is intended for informational purposes only and is not an offer to buy, a solicitation of an offer to sell or a recommendation to sell any options to purchase shares of Class B common stock. The solicitation of offers to sell options to purchase shares of Class B common stock is made pursuant to a tender offer statement on Schedule TO as amended, an offer to purchase as amended and related materials filed with the SEC.  Holders of options are urged to read the tender offer statement, the offer to purchase, and other relevant documents filed with the SEC because they contain important information. Holders of options can obtain the tender offer statement and other publicly filed documents without charge from the web site maintained by the SEC at www.sec.gov or from IDT without charge by directing a request to IDT Corporation, 520 Broad Street, Newark, New Jersey, Attention: Investor Relations, Telephone: (973) 438-1000. A copy of this press release will be available on IDT‘s website at www.idt.net in the “About IDT“ Press Releases section.

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.

NEWARK, NJ — March 13, 2006 — IDT Corporation (NYSE: IDT, IDT.C) today announced that its wholly-owned subsidiary, NTOP Acquisition, Inc., has merged with and into Net2Phone, Inc., a leading Voice over IP (VoIP) enabler for service providers.  Net2Phone, Inc. is now a wholly-owned subsidiary of IDT.

On Friday, March 10, 2006, Net2Phone stockholders consented to the adoption of the merger agreement and the approval of the merger following a consent solicitation by Net2Phone.  As of March 3, 2006, the record date for the consent solicitation, IDT beneficially owned approximately 82.5% of the outstanding equity of Net2Phone and approximately 87.2% of the outstanding voting power of Net2Phone.  IDT provided its consent with respect to all of its Net2Phone shares.

The merger was completed pursuant to the Agreement and Plan of Merger previously entered into among IDT, NTOP Acquisition and Net2Phone.  The remaining stockholders of Net2Phone will receive the same consideration of $2.05 per share in cash as was received by the Net2Phone stockholders who tendered in the offer.  As result of the merger, shares of Net2Phone capital stock are no longer publicly traded.

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.

About Net2Phone

Net2Phone provides VoIP PacketCable, SIP and wireless solutions around the world. As a leader in turn-key hosted VoIP telephony services, Net2Phone has routed billions of VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone provides partners with a SIP-based broadband telephony solution, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone’s PacketCable platform provides cable operators with the ability to deliver a high quality primary line-type service with features such as emergency calling. For more information about Net2Phone’s products and services, please visit www.net2phone.com.

NEWARK, NJ — March 8, 2006 — IDT Corporation (NYSE: IDT, IDT.C) announces operating results for the second quarter of fiscal 2006, the three months ended January 31, 2006. 

• Revenues increased 3.7% to $615.7 million from $593.5 million in the second quarter of fiscal 2005.
• The net loss from continuing operations for the second quarter of fiscal 2006 was $58.7 million, or ($0.61) per share, compared to a net loss of $20.7 million, or ($0.22) per share, in the second quarter of fiscal 2005.

·         As of January 31, 2006, cash, cash equivalents, and restricted cash and marketable securities stood at $700.0 million.

·         Our financial results for fiscal years 2005 and 2006 now reflect a reclassification of Corbina Telecom as a discontinued operation.

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

		Revenues			Income (Loss) from Operations
$ millions	Q2 ’06	Q1 ’06	Q2 ’05		Q2 ’06	Q1 ’06	Q2 ’05
IDT Retail Telecom	$368.2	$363.9	$397.3		($4.1)	$7.7	$12.8
IDT Wholesale Telecom	128.8	138.1	128.3		(7.3)	(6.1)	(3.7)
IDT Telecom Total	497.0	502.0	525.6		(11.4)	1.6	9.1
IDT Entertainment	48.4	48.1	41.1		0.2	0.7	2.0
Voice over IP	25.1	21.6	18.1		(9.4)	(8.1)	(8.7)
IDT Capital	43.4	31.4	7.2		(3.8)	(3.6)	(3.5)
IDT Solutions	1.7	1.4	1.5		(18.4)	(6.2)	(14.9)
Corporate	–	–			(14.3)	(16.8)	(12.6)
Total IDT	$615.7	$604.6	$593.5		($57.1)	($32.4)	($28.6)

“This was a challenging quarter for our telecom operations, which have faced unrelenting competitive pressures for some time,” said Jim Courter, CEO.  “In addition, while shedding our unprofitable Winstar operations, and disposing of our Russian telecom operations at a significant gain, we continued to invest in a mix of businesses, both within telecom, using our core competencies and infrastructure, and also in highly promising new areas, particularly in entertainment.  We believe this is the right course for the long term.”

 DEVELOPMENTS

·         The sale of Corbina, our Russian telecom business, for $145.7 million in cash, which we announced last quarter, closed on March 2.

·         On January 26, we announced that GVC Networks, of Detroit, Michigan, acquired the remaining operations and assets of our Winstar business, except for our nationwide spectrum assets.  The operations sold consisted mostly of existing contracts to provide telecommunications services to governmental customers.  In connection with the transaction, IDT paid Lucent $10 million in settlement of outstanding litigation. 

·         In the second quarter of fiscal 2006, we repurchased 3.1 million shares of IDT stock for $37.1 million.  Beginning with the fourth quarter of fiscal 2005 through January 31, 2006, we have repurchased a cumulative 6.4 million shares for $79.3 million.  We have Board authorization to acquire an additional 13.6 million shares.

·         On January 27, our tender offer for Net2Phone closed, and we acquired 33.2 million shares of Net2Phone for $68.3 million.  On February 17, we executed a merger agreement with Net2Phone.  Following the consummation of the merger, Net2Phone will be a privately held, wholly-owned subsidiary of IDT, and shares of Net2Phone common stock will cease to be quoted on the NASDAQ National Market and will be deregistered with the SEC.  The estimated additional consideration payable as a result of the merger will be approximately $28.1 million.

RESULTS OF OPERATIONS
IDT Telecom Line of Business Detail1
 

		Revenues				Gross Profit Margin
$ millions	Q2 ’06	Q1 ’06	Q2 ’05			Q2 ’06	Q1 ’06	Q2 ’05
Calling Cards	$301.6	$295.9	$306.5			20.4%	21.9%	22.4%
Consumer Phone Services	66.7	68.0	90.8			44.3%	46.7%	49.5%
Total Retail	368.2	363.9	397.3			24.7%	26.6%	28.6%
Wholesale	128.8	138.1	128.3			8.6%	9.0%	9.3%
Total Telecom	$497.0	$502.0	$525.6			20.5%	21.7%	23.9%

Retail Telecom

• Calling card revenues increased 1.9% versus the first quarter of fiscal 2006, and were 1.6% lower when compared to last year’s second quarter.   Both on a sequential basis as well as year-over-year, U.S. calling card revenues increased, while European calling card revenues declined, reflecting intensifying competition in some of our major European markets.
• Consumer phone services revenues in the second quarter of fiscal 2006 were 26.6% lower than those recorded in the year-ago period and down 2.1% from the first quarter of fiscal 2006, with continuing declines in the United States outweighing the growth achieved in Europe.  The customer base for bundled unlimited local and long distance calling within the United States was approximately 188,000 as of January 31, 2006, compared to 202,000 customers as of October 31, 2005 and 300,000 customers as of January 31, 2005.   The declines in revenues and subscribers is a direct result of our decision to stop marketing our bundled service early in calendar 2005 in response to the FCC’s ruling that incumbent carriers are no longer required to lease elements of their local networks to competing carriers, such as IDT.

·         Through Toucan, the brand name under which we provide our consumer phone and data services in the U.K. and the Netherlands, we provided service to approximately 165,000 customers subscribing to more than 191,000 services (which include various residential phone services in addition to Internet and wireless phone services) as of January 31, 2006.

·         Retail Telecom gross margins narrowed to 24.7%, compared to 26.6% in the first quarter, and 28.6% in last year’s second quarter. This quarter witnessed gross margin declines across all of our major retail lines of business.  Gross margins for calling cards in both the United States and Europe were affected by intensified price competition as well as cost increases to several key destinations. Our U.S. consumer phone services business was affected by the higher cost structure called for in our wholesale services agreement with Verizon, which replaced the UNE-P regime, which was in place during the second quarter of last year.

·         Operating profits for our Retail Telecom business declined $16.9 million as compared to the year-ago period, pushing the division into its first quarterly operating loss since the fourth quarter of fiscal 2001.

 

Wholesale Telecom

·         Wholesale Telecom revenues decreased 6.7% sequentially, and were essentially unchanged from those of a year ago.

·         Both on a sequential basis as well as year-over-year, increases in minute volumes were offset by declines in per-minute price realizations, resulting in gross margin declines.

·         Internationally originated traffic represented 56% of total wholesale revenues during the second quarter, compared to 50% in the first quarter, and 45% in last year’s second quarter, as our wholesale carrier business becomes increasingly global.
 

IDT Entertainment

• IDT Entertainment’s revenues increased both on a sequential basis as well as year-over-year, led by the growth in  our sales of proprietary productions.
• Proprietary production revenues during the quarter were driven by television and foreign pre-sales of The Happy Elf, Masters of Horror and other direct to TV/DVD productions.
• Our first feature film has been formally named “Everyone’s Hero, The Story of Yankee Irving.”  We have also obtained what we believe will be a more favorable movie release date – the weekend of September 15, 2006.
• On February 2, we announced the appointment of Amorette Jones as EVP of Marketing.  Ms. Jones is an award-winning marketing veteran and former head of Worldwide Marketing for Artisan Pictures.  She oversaw unique marketing strategies, which have influenced the way the entire industry markets movies, for films such as The Blair Witch Project.
• On February 23, we announced that the ABC Television Network picked up IDT Entertainment’s drama series Masters of Science Fiction.  The series will feature works from some of the most well known authors of science fiction.

IDT CONFERENCE CALL INFORMATION

Conference call today, March 8, 2006, at 5:15 PM Eastern Time.

• From the U.S., 1-866-594-2183  passcode #7098806.
• International callers, 1-973-935-8583 passcode #7098806
• Replay available for one week at
• 1-877-519-4471, passcode #7098806 for domestic callers,
• or 1-973-341-3080, passcode #7098806 for international callers.
• Webcast of the conference call at www.idt.net.  A direct link to the call on the website.  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. 
• Financial and statistical information available on IDT’s website at www.idt.net in the “About IDT” Press Releases, and “About IDT” Investor Relations Presentations and Financial sections.

ABOUT IDT CORPORATION 

IDT Corporation is a multinational telecommunications, entertainment and technology company.  IDT conducts its business primarily through the following operating divisions: IDT Telecom, our largest division, offers retail and wholesale telecommunications services including calling cards, consumer local, long distance, and wireless services; IDT Entertainment operates our animation and home video entertainment businesses; IDT Capital develops and operates new business ventures; and Voice over IP consists primarily of Net2Phone, a provider of VoIP PacketCable, SIP and wireless solutions around the world.

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.

  click here for additional tables

Investor Contact:  Jonathan Levy   973-438-4496
Media Contact:    Gil Neilsen         973-438-3553