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IDT and Liberty Media Corporation form Strategic Joint Venture

NEWARK, NJ and ENGLEWOOD, CO (June 14, 2001) – IDT Corporation (NYSE: IDT; IDT.B) and Liberty Media (NYSE: LMG.A; LMG.B) announced today plans to form a joint venture to make telephony services available to Liberty’s International cable affiliates. IDT and Liberty will have equal equity stakes in the joint venture, with IDT controlling the venture’s day-to-day operations and appointing a majority of its Board of Directors. IDT will provide the telephony termination and infrastructure for the joint venture for a period of five years and all of the funding obligations. Liberty has entered into a binding memorandum of understanding with Net2Phone, Inc. (NASDAQ: NTOP) to obtain a five-year license for Net2Phone’s technology, allowing it access to software used by Net2Phone to voice-enable and operate its IP network and to provide service to VoIP customers, as well as access to Net2Phone’s suite of IP communications applications. Liberty has agreed to assign this license to the joint venture. The formation of the joint venture is subject to the receipt of regulatory approvals.

“We have long been intrigued by the possibilities offered by cable telephony,” said Howard Jonas, Chairman and CEO of IDT Corporation. “By partnering with a company with the global reach of Liberty, and using Net2Phone’s industry-leading technology, we are positioning ourselves to benefit from this potentially huge market.”

“IDT and Net2Phone have a proven track-record of successful voice delivery over IP networks,” according to Robert Bennett, President and CEO of Liberty Media. “This is an excellent example of Liberty’s ability to partner with recognized leaders in VoIP and next-generation voice technology and bringing that expertise to Liberty’s International distribution platform.”

Completion of the transaction is subject to customary conditions and is expected to occur by July 14, 2000.


IDT is a leading facilities- based, multinational carrier that combines its position as an international telecommunications operator with its experience as an Internet service provider to provide a broad range of telecommunications services to its wholesale and retail customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT provides its customers with integrated and competitively priced international and domestic long distance telephony, prepaid calling cards, Internet access and digital subscriber line (DSL) service.


Gil Nielsen
VP, IDT Corporate Communications
(973) 438-4002

Mary Jennings
Manager, Investor Relations
(973) 438-3124


Liberty Media holds interests in a broad range of Domestic and International video programming, communications, technology and Internet businesses. Liberty Media’s principal International cable assets include interests in UnitedGlobalCom, Inc., Telewest Communications plc, and Jupiter Telecommunications Co., Ltd.


Mike Erickson
VP Investor Relations
(877) 772-1518

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward-looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to , those risks discussed in this release. In addition to the factors specifically noted in the forward-looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2000; and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward-looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward-looking statements.