Newark, N.J., August 11, 2005 – IDT Entertainment is pleased to announce two key executive appointments.  Neil S. Braun, currently President and Chief Operating Officer of Vanguard Animation and former President of the NBC Television Network, Chairman and CEO of Viacom Entertainment, and President and COO of Imagine Films Entertainment, has been named President of Feature Films and Television for IDT Entertainment.  Also, veteran animation producer and creative affairs executive Jerry Davis, who counts Robots, Ice Age, Iron Giant, and Toy Story among his high profile credits, has been named Chief Creative Officer, Animated Features.

The executives will spearhead IDT Entertainment’s aggressive expansion of its feature film and television production slate.  Mr. Braun will be the lead financial architect for all business deals regarding feature film and television properties.  Mr. Davis heads up the search for, and development of, creative content and talent for all of IDT Entertainment’s animated feature films.  He will explore content sources from both within the IDT Entertainment framework of subsidiaries and from the larger entertainment community.   

“With Mr. Braun and Mr. Davis in our corner, IDT Entertainment has the perfect business/creative one-two punch,” said Jim Courter, CEO of IDT Corp.  “Neil and Jerry’s combined business acumen and filmmaking experience will supercharge an already powerhouse IDT Entertainment management team.”

Mr. Braun and Mr. Davis join IDT Entertainment as the company moves into both feature film and television production.  IDT Entertainment intends to distribute its first full-length CG animated feature, Yankee Irving, through its recently announced two-year, multi-picture distribution deal with Twentieth Century Fox.  Developed and originally directed by the late Christopher Reeve, Yankee Irving was the last project he worked on before his passing. 

 “Our company is willing and able to invest in executives and filmmakers who create magical, emotionally resonant family entertainment,” said Morris Berger, CEO of IDT Entertainment. “Neil and Jerry’s expertise is evidenced by the hundreds of millions of dollars the films they’ve been involved with have earned at the box office.”

As part of his corporate IDT Entertainment responsibilities, Braun will continue to serve as President and Chief Operating Officer of Vanguard Animation, a leading independent feature film animation production company he co-founded with John H. Williams, producer of the Academy Award® winning Shrek.   IDT Entertainment is the principal investor in Vanguard Animation.  At Vanguard, his responsibilities include negotiating worldwide financing and distribution arrangements. Vanguard’s first full length animated feature film, Valiant, distributed through Walt Disney Pictures, will premiere in the United States on August 19^th.  The company has a full slate of animated projects in various stages of production and development.

Prior to co-founding Vanguard Animation, Braun was President of the NBC Television Network.  Before that, he was Chairman and CEO of Viacom Entertainment, where he was responsible for the turn-around of the production and distribution divisions for prime-time programming, first-run syndicated programming, licensing & merchandising, and worldwide exploitation of the television library.  During his tenure as President and COO of Imagine Films Entertainment, the film and television production company owned by Ron Howard and Brian Grazer, Braun took the company public.  He also headed HBO’s film financing and home video activities.  

“IDT Entertainment empowers the creative process,” said Neil Braun.  “Its management strength and financial muscle allow for timely and strategic decisions.”   

Jerry Davis has proven himself a successful producer and executive in several sectors of the entertainment industry.   Prior to joining IDT Entertainment, he was an executive at Blue Sky Studios, the animation arm of Twentieth Century Fox, where he was a producer on Robots and a production supervisor on Ice Age. He was also Director of Creative Affairs for Warner Bros. Feature Animation, where he spearheaded the adaptation of the classic Ted Hughes children’s book, Iron Giant, and led the pioneering effort to integrate CG and traditional animation into the film version.  While at Walt Disney Studios, he worked closely with Pixar as a production executive to bring Toy Story to the screen.  Davis was also a theatrical producer, starting with Alexander H. Cohen Productions, and lists many regional and Off-Broadway productions among his producing credits.    

“IDT Entertainment had the right strategy at the right time and I’m thrilled to be a part of it,” said Jerry Davis.

IDT Entertainment is a vertically integrated entertainment company that develops, produces, and distributes proprietary and licensed entertainment content.  IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment, and technology company

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 Corp’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 Corp’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 Corp. may make with the SEC.

Newark, N.J., July 29, 2005 – IDT Corporation (NYSE: IDT, IDT.C) is pleased to announce that it has settled its lawsuit against Telefonica S.A., Terra Networks, S.A., and Terra Networks, U.S.A., Inc. Under the terms of the settlement, IDT has received $44-million from Telefonica. IDT is an international telecom, entertainment and technology company.

On January 29, 2001, IDT filed a complaint against Telefonica S.A., Terra Networks, S.A., Terra Networks, U.S.A., Inc. in the United States District Court, District of New Jersey, relating to a joint venture we entered into with Terra Networks, S.A. in October 1999 and subsequently terminated in April 2000. The complaint asserted multiple claims and counterclaims, all of which have been settled.

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.

Newark, NJ and Los Angeles, CA, July 15, 2005 – IDT Entertainment and Industry Entertainment Productions announce their second one-hour original film anthology series, MASTERS OF SCI-FI, featuring works from the greatest writers of science fiction including H.G. Wells (“War of the Worlds,” “The Invisible Man,” “The Time Machine”), Isaac Asimov (“I Robot,” “Nightfall”) Ray Bradbury (“The Martian Chronicles, Fahrenheit 451”), Harlan Ellison (“A Boy and His Dog,” “Jeffty is Five”), Robert Heinlein (“The Puppet Masters, Stranger in a Strange Land”), and Stanislav Lem (“Solaris”).  IDT Entertainment and Industry’s first anthology series, MASTERS OF HORROR, is currently in production in Vancouver and will premiere on Showtime this Fall followed by worldwide distribution.   

“We are excited to have legendary writers such as Ray Bradbury and Harlan Ellison adapting their own short stories for this project,” said Brad Mendelsohn, Partner, Industry Entertainment.  “We are concurrently completing deals for other distinguished writers to adapt these fascinating stories.”  Final conversations are underway for writer Michael Tolkin (“The Rapture,” “The Player,” “The New Age”) to adapt and direct Heinlein’s “Jerry Was a Man.”

IDT Entertainment will fully finance the anthology, just as it did for MASTERS OF HORROR. The initial 13 episodes are expected to start production in Vancouver in March 2006.  IDT Entertainment and Industry have interest from multiple broadcast partners and will announce their choice in the near future.  Worldwide sales and home entertainment distribution will be handled through IDT Entertainment subsidiaries.

MASTERS OF SCI-FI will include stories from the most highly regarded authors in the science fiction genre.  Initial masterworks, chosen with an eye towards the one hour format, will include “Dark They Were, And Golden-Eyed” by Ray Bradbury; “‘Repent, Harlequin!’ Said The Ticktockman” by Harlan Ellison; “The Hunt” by Stanislav Lem, and “The Crystal Egg” by H.G. Wells.  Negotiations are currently underway to include “The Last Question” by Isaac Asimov and “Jerry Was A Man” by Robert Heinlein. 

“Our ‘MASTERS’ franchise brings works of some of our greatest creative talents to worldwide audiences for the first time through first-class film productions,” said John Hyde, COO of IDT Entertainment.  “Science fiction is one of the most enduring and popular literary genres so we’re very excited to bring these great works to a huge fan base.”   

Industry Entertainment’s Keith Addis and Brad Mendelsohn are Executive Producers of MASTERS OF SCI-FI.  Industry’s Andrew Deane, seminally involved in the creation of MASTERS OF HORROR, will serve as Co-Executive Producer.

Industry Entertainment Partners, a leading talent management and production company, has produced award-winning films including sex, lies and videotape, DRUGSTORE COWBOY, THE PLAYER, REQUIEM FOR A DREAM, and QUILLS. 

IDT Entertainment is a vertically integrated entertainment company that develops, produces, and distributes proprietary and licensed entertainment content.  IDT Entertainment’s subsidiaries include animation studios Film Roman, Mainframe Entertainment, and DKP Studios; home entertainment companies Anchor Bay Entertainment and Manga Entertainment; distribution company IDT Entertainment Sales (IDTeS), and live action production company New Arc Entertainment.  IDT Entertainment is a subsidiary of IDT Corporation (NYSE:IDT, IDT.C) an international telecom, entertainment, and technology company.

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., July 15, 2005 – IDT Corporation today announced it has signed a long-term wholesale services agreement with Verizon Communications, Inc. for local phone service. The new agreement takes effect on August 1, 2005. IDT Corporation (NYSE: IDT, IDT.C) is an international telecom, entertainment and technology company. Verizon Communications, Inc., is one of the world’s leading providers of communications services.  

According to terms of the agreement, Verizon will provide IDT with dial tone services or access to its local networks for a period of up to five years. The new agreement essentially preserves the features, functionality and ordering processes previously available to IDT under Verizon’s Platform of Unbundled Elements (UNE-P) service offerings.

“This agreement between IDT and Verizon shows the competitive marketplace works free from federal regulation,” said Jim Courter, IDT’s CEO. “Telecom consumers get more choice and greater flexibility. For IDT, it means our flat rate, bundled calling plans will continue to provide customers with competitively priced local and long distance phone service.”

Within Verizon’s calling areas,  “IDT America Unlimited,” is available in ten states, New York, New Jersey, Pennsylvania, Maryland, Delaware, Massachusetts, New Hampshire, West Virginia, Maine, and Rhode Island. The calling plan includes unlimited local, regional toll and domestic long distance calling with Caller ID, Speed Dial, Call Waiting and 3-way Calling, and the convenience of one monthly bill. In most areas, “IDT America Unlimited” is available for $39.95 a month. “IDT America Choice” provides unlimited local service with Caller ID and Call Waiting for $28.95 a month with IDT Long Distance included at just 5 cents a minute (available in most areas) with no additional fee. With either plan, IDT’s aggressive WorldSaver international rate plan can be added on for an additional $2 per month. To find out more, call 1-800 CALL IDT.

“Since ‘IDT America Unlimited’ and ‘IDT America Choice’ were launched in September 2003, consumers have responded favorably to our offer of bundled service and popular calling features at low rates,” said Norm Rosenberg, CFO of IDT Telecom and Managing Director of Consumer Phone Services. “We will continue to offer our customers a great combination of service and value.” 

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 in which 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 are used. 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., July 8, 2005 — IDT Corporation (NYSE: IDT, IDT.C) announced that its President, Ira Greenstein, has responded to a letter from the independent committee of the Board of Directors of Net2Phone regarding IDT’s June 28, 2005 offer to acquire all of the outstanding shares of Net2Phone stock it does not presently own for $1.70 per share.

IDT’s response, sent forth in a letter from Abbe Dienstag of Kramer Levin Naftalis & Frankel LLP, legal counsel for IDT, to Stephen Fraiden of Kirkland & Ellis, legal counsel for Net2Phone’s independent committee, stated:

Dear Steve:

Ira Greenstein, president of our client IDT Corporation, is in receipt of your letter of July 6, 2005 and has asked that we respond.

Representatives of IDT would be pleased to meet with the independent committee of the board of directors of Net2Phone, Inc. and its advisors to discuss IDT’s offer to acquire the shares of Net2Phone not already owned by IDT and its affiliates.  Please let us know when the committee would be prepared to convene such a meeting, so that we can schedule a mutually convenient time.

On behalf of IDT, we advise the committee that IDT is not interested in selling its shares in Net2Phone to a third party.

                                                            Sincerely yours,

Abbe Dienstag

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 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., June 28, 2005 – IDT Corporation (NYSE:IDT, IDT.C) announced that its President, Ira A. Greenstein, has today delivered to the Board of Directors of Net2Phone, Inc. (NASDAQ: NTOP) notice of IDT’s intention to commence a tender offer for all outstanding shares of common stock of Net2Phone not owned by IDT or its affiliates, at a price of $1.70 per share, net to the sellers in cash, without interest. IDT currently, directly and indirectly, owns 2,773,798 shares of Net2Phone common stock and 28,896,750 shares of Net2Phone class A common stock representing approximately 41% of Net2Phone’s outstanding equity securities and approximately 57% of the total voting power of Net2Phone’s outstanding equity securities. IDT anticipates that the offer will be commenced after the Special Committee of the Net2Phone Board of Directors and its advisors have had an opportunity to review and consider the offer.

The closing price for the Net2Phone common stock on June 28, 2005 was $1.41.

The offer will be subject to the non-waivable condition that it be accepted by holders of a majority of the outstanding shares of common stock of Net2Phone not owned by IDT and its affiliates. The offer will be subject to the waivable condition that IDT directly or indirectly own at least 90% of the outstanding shares of common stock of Net2Phone following consummation of the offer. As promptly as practicable following the consummation of the offer, IDT will effect a merger of Net2Phone with a subsidiary of IDT in which all remaining holders of Net2Phone common stock would receive the same consideration for their shares as the holders who tendered their shares received in the offer. The offer also will be subject to other terms and conditions that will be set forth in the tender offer materials to be distributed to Net2Phone stockholders. Following consummation of the merger, IDT intends to delist Net2Phone’s common stock from quotation on Nasdaq and terminate the registration of Net2Phone’s common stock under the Securities Exchange Act of 1934.

IDT will file a tender offer statement, a statement on Schedule 13E-3 and related documents with the SEC with respect to the offer when it is commenced. Net2Phone stockholders should read the tender offer statement and the other documentation when they become available because they will contain important information. Investors can get the tender offer statement, the statement on Schedule 13E-3 and other filed documents without charge from the web site of the SEC at www.sec.gov after these documents are filed. Investors will also be able obtain the tender offer statement and related documents from IDT without charge by directing a request to IDT Corporation, 520 Broad Street, Newark, New Jersey, Attention: Investor Relations, Telephone: (973) 438-1000.

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 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., June 8, 2005 – IDT Entertainment today announced it has signed a two-year, multi-picture distribution deal with Twentieth Century Fox. Under terms of the agreement, Twentieth Century Fox will distribute computer generated (CG) animated theatrical releases produced by IDT Entertainment. IDT Entertainment is a subsidiary of IDT Corporation (NYSE:IDT, IDT.C), an international telecom, entertainment, and technology company.

“IDT Entertainment has taken an important step towards its goal of producing and arranging distribution for its quality feature films,” said Jim Courter, IDT’s CEO. “Just as IDT’s unique blend of excellence and efficiency caused a revolution in the telecommunications industry, IDT Entertainment’s combination of high-quality animation and streamlined production is bringing innovation to the creation of computer generated films.”

Commented Fox Filmed Entertainment co-chairman Jim Gianopulos: “We are impressed with IDT Entertainment’s commitment to building a strong production team. Fox Home Entertainment had already established a relationship with IDT Entertainment’s Anchor Bay Entertainment, and we are pleased to build on that via this new theatrical distribution deal with IDT Entertainment.”

Added Fox Filmed Entertainment co-chairman Tom Rothman: “IDT Entertainment is devoting significant resources to producing animated feature films, and we look forward to working with them to bring those pictures to the marketplace.”

The agreement provides IDT Entertainment with the expertise, experience and effectiveness of one of the most successful CG animation distributors in the business.

“I am proud of the talented creative and management teams that we have assembled,” said Morris Berger, CEO of IDT Entertainment. “With our creative development and computer generated production capacity, as well as our financial strength, we are well positioned to become an important provider of animated feature films, and we look forward to working with Fox.”

IDT Entertainment, a division of IDT Corporation, is a vertically integrated entertainment concern that develops, produces, and distributes proprietary and licensed entertainment content, with a particular focus on high-quality animation. IDT Entertainment’s subsidiaries include animation studios Film Roman, Mainframe Entertainment, and DKP Studios; distribution companies Anchor Bay Entertainment, Manga Entertainment, and IDT Entertainment Sales (IDTeS), and live action production company New Arc Entertainment.

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. —June 7, 2005—IDT Corporation (NYSE: IDT, IDT.C) today reported quarterly revenues of $606.7 million for the third quarter of its fiscal 2005, the three months ended April 30, 2005. Third quarter revenues increased 7.3% versus revenues of $565.7 million in the third quarter of fiscal 2004 and decreased slightly from the prior quarter’s $608.8 million. The net loss for the third quarter of fiscal 2005 was $14.3 million, or ($0.15) per share, compared to a net loss of $76.8 million, or ($0.84) per share, in the third quarter of fiscal 2004, and a net loss of $17.7 million, or ($0.19) per share, in the second quarter of fiscal 2005.

As of April 30, 2005, cash and cash equivalents, marketable securities, and restricted cash and marketable securities stood at $950.7 million, including $105.9 million held by Net2Phone.

  Click here for financial tables

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

 

			Revenues						Income (Loss) from Operations
$ millions		Q3 ’05		Q2 ’05		Q3 ’04				Q3 ’05	Q2 ’05	Q3 ’04
IDT Retail Telecom		$391.5		$411.7		$343.3				$16.7	$17.7	$22.6
IDT Wholesale Telecom		139.4		129.2		138.5				(4.6)	(4.5)	(4.5)
IDT Telecom Total		531.0		541.0		481.9				12.1	13.1	18.1
IDT Entertainment		46.0		41.1		40.7				3.1	2.0	2.4
Voice over IP		17.1		18.1		20.8				(11.5)	(8.7)	0.9
IDT Capital		11.1		7.2		5.1				(3.3)	(3.5)	(12.4)
IDT Solutions		1.6		1.5		17.2				(8.8)	(14.9)	(55.4)
Corporate		–		–		–				(15.4)	(12.6)	(11.9)
Total IDT		$606.7		$608.8		$565.7				($23.8)	($24.6)	($58.3)

 

“Through the first nine months of the fiscal year our revenues are up 15%, and we continue to maintain our strong balance sheet,” said Jim Courter, CEO. “This growth is being driven by both our telecom division, where we are expanding our product offerings and geographic presence, and our entertainment division, where we are producing and selling an expanding slate of live action films for television and home video release. We are also making progress in the production of our animated feature films and the expansion of our home video distribution business.”

RESULTS OF OPERATIONS
IDT Telecom

Revenues for IDT Telecom for the third quarter of fiscal 2005 increased 10.2% year-over-year and declined 1.9% compared to the second quarter of fiscal 2005. The sequential revenue comparison was affected by the fact that the third quarter contains 89 days, versus 92 days in the other three fiscal quarters. On a per-day basis, Q3 fiscal 2005 revenues were the highest to date for Telecom. Gross margin for the quarter was 23.6%, unchanged from the year-ago period, and 116 basis points lower than those recorded in Q2 of fiscal 2005. The sequential decline in gross margin was mostly due to a shift in our revenue mix for the quarter. When compared to the second quarter, relatively low margin wholesale revenues accounted for a larger proportion of overall IDT Telecom revenues, and the retail segment witnessed a shift in revenue mix away from higher-margin Consumer Phone Services revenue, towards calling cards.

Gross profits were $125.5 million in the third quarter of fiscal 2005, representing an increase of 10.4% year-over-year and a decrease of 6.4% versus the second quarter of fiscal 2005. Selling, general and administrative (SG&A) expenses for IDT Telecom were $87.0 million in the third quarter, versus $76.0 million in the third quarter of fiscal year 2004 and $98.0 million in the second quarter of fiscal year 2005.

Income from operations for the third quarter was $12.1 million, 33.0% lower than in the prior year period, and 7.7% less than in fiscal 2005’s second quarter, due to increase in depreciation and SG&A expenses from the prior year period, and due to lower revenues and gross profits in comparison to the preceding quarter. Minutes of use for the third quarter of fiscal 2005 increased 17.5% year-over-year to 5.817 billion minutes from 4.952 billion minutes, and increased 1.0% from the previous quarter’s 5.761 billion minutes.

IDT Telecom Line of Business Detail1
 

				Revenues				Gross Profit Margin
$ millions		Q3 ’05			Q2 ’05	Q3 ’04			Q3 ’05	Q2 ’05	Q3 ’04
Calling Cards		$308.4			$321.0	$278.0			23.6%	24.0%	23.2%
Consumer Phone Services		83.1			90.8	65.4			47.8%	49.5%	51.8%
Total Retail		391.5			411.7	343.3			28.7%	29.6%	28.7%
Wholesale		139.4			129.2	138.5			9.4%	9.4%	11.0%
Total Telecom		$531.0			$541.0	$481.9			23.6%	24.8%	23.6%

Retail Telecom

Retail Telecom revenues for the third quarter increased 14.0% year-over-year to $391.5 million, and declined 4.9% from the second quarter of fiscal 2005. Income from operations for the third quarter was $16.7 million, a 26.0% decline year-over-year and a 5.2% decline from the second quarter.

Calling card revenues increased 10.9% versus the third quarter of fiscal 2004 and fell 3.9% versus the second quarter of fiscal 2005. Both the growth versus the year-ago figure as well as the sequential quarterly decline were broadly based geographically, with the exception of our calling card operations in Latin America and Asia. These businesses continued to make steady market share progress during the quarter, although they continue to represent a small proportion of our global calling card operations.

Consumer phone services revenues in the third quarter of fiscal 2005 were 27.2% greater those recorded in the year-ago period and down 8.4% from the second quarter of fiscal 2005. The customer base for America Unlimited, the IDT calling plan which features unlimited local and long distance calling within the United States for a fixed monthly rate, was approximately 259,000 as of April 30, 2005. In addition, we had approximately 352,000 long distance-only customers at April 30, 2005. The 7.1% decline in our combined customer base since January 31, 2005 occurred as we scaled back advertising for our America Unlimited plan, in the wake of the change in UNE-P rules, which took effect March 11, 2005. We continue to negotiate with the ILECs, with the intent of signing long-term commercial arrangements, which will allow us to grow our America Unlimited business.

In the United Kingdom, we continue to build the customer base for our Toucan consumer phone service. As of April 30, 2005, we had approximately 138,000 active customers. The expansion of the Toucan brand, which has already gained significant recognition in the U.K. market, involves both a broadening of the suite of service offerings, as well as expansion into other markets. During the second quarter, we added Internet access to our offering and we are planning a Toucan-branded cellular service to be rolled out later this year. Our Internet access service offerings include both dial-up and broadband access services, marketed under the ToucanSurf brand. We plan to expand Toucan to other European markets and anticipate the launch of the service in the Netherlands and in Belgium during the first half of Fiscal 2006.

Given our continued customer growth in U.K. with the concurrent, temporary decline in the number of U.S. customers, the third quarter witnessed a shift in Consumer Phone Services revenue towards our U.K. business, which tends to experience somewhat lower gross margins than does our business in the U.S. This was a primary factor in both the year-over-year and sequential gross margin decline within our worldwide Consumer Phone Services business.

Wholesale Telecom

During the third quarter of fiscal 2005, Wholesale Telecom achieved revenues of $139.4 million, 0.7% higher than the year-ago quarter’s $138.5 million, and 7.9% higher than the revenues recorded during the second quarter of fiscal 2005. The revenue gains were driven by higher minutes volumes, across all of our regions of operation, reflecting an increased number of carrier customers. In comparing the third quarter’s results with those of the prior periods, however, the increased traffic volumes were partially offset by lower per-minute price realizations.

IDT Entertainment

IDT Entertainment generated revenues of $46.0 million in the third quarter of fiscal 2005, compared to $40.7 million of revenues recorded in the third quarter of fiscal 2004 and $41.1 million of revenues generated in the second quarter of fiscal 2005. The revenue increase versus the year-ago period is primarily due to increased revenue at Anchor Bay, and secondarily to the inclusion of revenues from Manga Entertainment for the full quarter and contributions to revenue for the first time from our live action division, New Arc Entertainment.

IDT Entertainment’s income from operations was $3.1 million in the third quarter of fiscal 2005, compared to income from operations of $2.4 million in the year-ago period and income from operations of $2.0 million in the previous quarter. The increase in income from operations versus the prior year is due to broad strength in each of IDT Entertainment’s operating businesses.

IDT Entertainment recently announced that it has obtained a $50 million, five-year, secured revolving credit facility (which may be increased up to $75 million) from a bank syndicate led by J.P. Morgan Chase. The borrowings will be used to provide funding for the production of live action and animated features for television broadcast and home video distribution.

IDT Entertainment’s live-action division, New Arc Entertainment, has begun licensing the rights to its productions this quarter. The TV rights to New Arc Entertainment’s Masters of Horror, a 13-episode anthology featuring some of the most prolific horror creators, including George Romero and John Carpenter, were sold to the Showtime Cable Network. The series is expected to premier in the Fall of 2006. Also, the TV rights to New Arc’s first two completed genre films, The Fallen Ones and All Souls Day, were licensed to the Sci-Fi Channel. The Fallen Ones premiered on May 14th at 9pm and was the highest rated show on the Sci-Fi Channel that week. All Souls Day is set to premier June 11th at 9pm on the Sci-Fi Channel. IDT Entertainment Sales successfully sold these titles and several others, including some from the Stephen J. Cannell co-production agreement, to several international distributors in markets such as the UK, Japan, France, Italy and Germany, among others.

On the distribution side, some of our most successful video releases during the third quarter came from the TV Series-on- DVD category which included The Greatest American Hero Seasons 1 & 2, Doogie Howser, MD, 21 Jump Street Season 2 and Xena Warrior Princess Season 6. Other successful titles include two new Thomas the Tank Engine titles, the Crunch fitness franchise and John Grisham’s Mickey. During the next few months, IDT Entertainment will be releasing a number of well-known titles into the retail market including 3rd Rock From the Sun, Roseanne, Mr. Rogers Neighborhood, Silk Stalkings Season 3, a new Thomas the Tank Engine video, Dario Argento’s The Card Player and, through Manga Entertainment, Ghost in the Shell Volumes 6 & 7.

Voice over IP

IDT’s Voice over IP business segment consists primarily of our interest in Net2Phone, which is a separate publicly held corporation whose common stock is quoted on the NASDAQ National Market under the symbol “NTOP.” Net2Phone issued a press release with respect to its results for the third quarter of fiscal 2005 ended April 30, 2005, on June 6, 2005. Set forth below is a brief description of Net2Phone’s results as they are consolidated into IDT’s results. Primarily because of the elimination of intercompany transactions in IDT’s consolidated results, and also because, in Q2, IDT’s consolidation was based upon Net2Phone’s preliminary results, while Net2Phone revised its reported results, Net2Phone’s independently reported results of operations differ from those reported in IDT’s consolidated results.

Voice over IP’s loss from operations for the third quarter of fiscal 2005 was $11.5 million on revenues of $17.1 million, compared to income from operations of $0.9 million on revenues of $20.8 million in the third quarter of fiscal 2004 and a loss from operations of $8.7 million on revenues of $18.1 million recorded in the second quarter of fiscal 2005. Recent achievements include:

· a 79% incr
ease in broadband telephony subscribers from the prior quarter, bringing the total to more than 25,000 subscribers; and
· Commercial launches of Net2Phone’s cable telephony product by Coditel, EST, Bresnan, Millennium, Northland, Cable & Wireless Cayman Islands and ETB.

IDT’s net loss for the third quarter of fiscal 2005 includes only its ownership stake in the loss of Net2Phone during the quarter, which increased from approximately 14% to about 40.9% on March 8, 2005, when we acquired all of Liberty Media Corporation’s direct and indirect interests in Net2Phone in exchange for approximately 3.75 million shares of IDT Class B common stock. IDT’s ownership stake in Net2Phone averaged 31.7% during the third quarter of fiscal year 2005. An adjustment to record the share of Net2Phone’s net loss attributable to the other shareholders of Net2Phone has been made in ‘minority interests’ on IDT’s Statement of Operations.

IDT CONFERENCE CALL INFORMATION

In connection with this release of quarterly results, IDT will be hosting a conference call today, June 7, 2005, for analysts, investors and the general public, at 5:00 PM Eastern Time. To access the call from the U.S., dial 1-866-594-2183. For international callers, the dial-in number is 1-973-935-8583. No pass code is required. A replay of the teleconference will be available for one week after the conference call at 1-877-519-4471, passcode #6129775 for domestic callers, or 1-973-341-3080, passcode #6129775 for international callers.

Alternatively, interested participants may access a webcast of the conference call by visiting the IDT Website, at www.idt.net. A direct link to the call will be placed on the website. Listening to the webcast of the call will require Windows Media software. Please allow at least 15 minutes to download the necessary audio software prior to the call. 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.

A copy of this press release and additional financial and statistical information presented during the conference call will be 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 offers retail and wholesale telecommunications services including calling cards, consumer local, long distance, and wireless services; IDT Entertainment operates our animation and entertainment distribution businesses; IDT Capital develops and operates new business ventures; and Voice over IP consists primarily of Net2Phone, a global provider of VoIP PacketCable, SIP and wireless solutions. Net2Phone is a separate publicly held corporation whose common stock is traded on the NASDAQ National Market under the symbol “NTOP.”

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 t the sensitivity of our telecommunications businesses to declining prices; our reliance on success in the pre-paid calling card market; our ability to obtain cost effective termination capacity worldwide; our reliance on the financial health of other telecommunication companies that are our customers; the impact of changes to U.S. and foreign regulations; increases in competition in the consumer phone service market; our ability to integrate and manage acquisitions; our ability to effectively develop and produce animated films; our ability to protect our proprietary rights; general economic conditions in the global telecommunications market; the general condition of the economy of the United States and internationally; and any of the other 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.

Investor Contacts
John Swierk, COO, IDT Venture Capital
973-438-4171
Mary Jennings, Director, Investor Relations
973-438-3124
Gil Nielsen VP, IDT Corporate Communications
973-438-3553 

Conference Call Scheduled for 5:00 pm (EDT)

NEWARK, N.J. – May 31, 2005 – Please join us for the IDT Corp. (NYSE: IDT and IDT.C) third quarter conference call when we report results for the period ended April 30, 2005, along with an update of our current financial status.

Our conference call is scheduled for Tuesday, June 7, at 5:00 PM (EDT). 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. You may access the webcast of our call by visiting the IDT Corp. website (www.idt.net). A direct link to the call will be found on the IDT Corporation home page, and at the following hyperlink:
Click here

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 is 1-866-594-2183 for domestic callers, and 1-973-935-8583 for international callers.

Should you miss the call, you may access an archived copy at the IDT website (in the Investor Relations section’s Presentations), or via a replay at 1-877-519-4471 — passcode #6129775 for domestic callers, or 1-973-341-3080 — passcode #6129775 for international callers. The teleconference replay will be available for one week after the conference call.

We look forward to your participation.

Newark, N.J., May 9, 2005 – IDT Entertainment today announced that Anchor Bay Entertainment has closed a Credit Agreement with a bank group led by J.P. Morgan Chase Bank. The Credit Agreement provides for a $50 million, five-year, secured revolving credit facility which may be increased to up to $75 million. IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment, and technology company.

“If there’s one reality in Hollywood, it’s that acquiring great scripts or producing compelling programming requires financing,” said Jim Courter, IDT’s CEO. “This special relationship with J.P. Morgan represents more than just money. It’s a vote of confidence from the financial community that our plan to make IDT Entertainment a global production, distribution, and entertainment company will be successful.”

The credit facility provides funding for the production of live action and animated feature films and television series by IDT Entertainment’s New Arc Entertainment, a subsidiary specializing in the production of supernatural/thriller/action genre properties. It will also fund the acquisition of additional titles for home video distribution by IDT Entertainment’s Anchor Bay and Manga Entertainment subsidiaries.

“We are pleased to be doing business with IDT Entertainment. The company’s management is proving to have a firm grasp of the entertainment industry and a bold vision for its future, which is quite extraordinary for an emerging company,” said John W. Miller, Managing Director and Head of Western Region Corporate Banking, J.P. Morgan Securities, Inc. “In just 18 months, IDT Entertainment has created a meaningful presence in the entertainment industry through artful acquisitions and a well thought out strategy.”

“Our plan is to continue to grow IDT Entertainment’s production, distribution, and licensing businesses,” said Morris Berger, IDT Entertainment’s CEO. “This credit facility allows us to accelerate production, expand our creative partnerships, and add new titles. We are now positioned to play a leading role on the world entertainment stage.”

IDT Entertainment is a vertically integrated entertainment business that develops, produces and distributes proprietary and licensed entertainment content. IDT Entertainment’s subsidiaries include animation studios DPS Film Roman, Mainframe Entertainment, and DKP Studios; distribution companies Anchor Bay Entertainment, Manga Entertainment and IDT Entertainment Sales (IDTeS), and production company New Arc Entertainment.

Anchor Bay Entertainment (ABE) is one of the top independent suppliers in the home entertainment arena, with a library of over 3,500 titles. Anchor Bay distributes such high profile television properties as Roseanne, 3rd Rock from the Sun, Xena: Warrior Princess, Hercules, Highlander, Three’s Company, and much of the revered Stephen J. Cannell library, including The Commish, 21 Jump Street and The Greatest American Hero, as well as such classic children’s properties as Thomas & Friends and the beloved Mister Rogers. Since its inception in 1989, ABE has become the venue of choice for some of the world’s greatest filmmakers, including award-winning directors Werner Herzog, Peter Jackson, Wim Wenders, and Sam Raimi. Since its inception, the company has created, developed and released six national #1 fitness best-sellers.

New Arc Entertainment is IDT Entertainment’s film production company specializing in live action and animated feature films and television series programming in the supernatural/thriller/action genre for a variety of platforms. Most recently, New Arc announced that it has teamed with Industry Entertainment and Nice Guy Productions to produce Masters of Horror – an anthology series highlighting 13 leading directors of the genre including John Carpenter (Halloween), Joe Dante (The Howling), Mick Garris (The Stand), Stuart Gordon (Re-Animator), Tobe Hooper (Poltergeist), and John Landis (An American Werewolf in London), among others. Other New Arc original productions include The Fallen Ones, starring Casper Van Dien; All Souls Day: Dia De Los Muertos, starring Laura Elena Harring and Danny Trejo, and Demon Hunter and It Waits, both to be directed by Stephen J. Cannell. New Arc is producing animation projects El Superbeasto by Rob Zombie, Todd McFarlane’s Spawn, and Stan Lee Presents, a series of six feature films.

Manga Entertainment Inc. specializes in the production, marketing and distribution of Japanese anime for theatrical, television, Internet, DVD and home video release worldwide. The company’s revered anime catalog includes such renowned titles as Ghost in the Shell, Ninja Scroll, Blood: the Last Vampire, Neon Genesis Evangelion, Street Fighter Alpha, Perfect Blue, X, Macross Plus, Dead Leaves and Read or Die.

The foregoing summary of the Credit Agreement is not complete and is qualified in its entirety by reference to the Credit Agreement, a copy of which is filed as Exhibit 10.1 to the report on Form 8-K filed by IDT Corporation on April 28, 2005.

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.