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IDT Announces Management Changes at Corporate and Telecom

IDT to Host Conference Call to Discuss Developments


Corporation (NYSE: IDT; IDT.C) announced today several changes in

management personnel as well as a new executive compensation plan for

IDT Telecom. The plan is intended to identify and create incentives for

Telecom management to turn around and create enhanced value from the

various operations of that division.

The new Telecom management team will be led by Motti Lichtenstein as CEO

of IDT Telecom. Motti served as CEO of IDT Telecom during its period of

most significant growth. He moves from serving as COO of IDT Corporation

to focus on the turnaround of IDT Telecom. Joining Mr. Lichtenstein on

the IDT Telecom executive management team will be Mikhail Leibov, who

will serve as President, Marcelo Fischer as CFO, Ely Tendler as General

Counsel, and Yona Katz as COO. Mr. Leibov headed up the growth of

Corbina, IDTs Russian telecom operation, from

its inception through its acquisition by IDT and ultimate sale in fiscal

2007. Mr. Fischer has previously served IDT Corporation as Chief

Accounting Officer and CFO. Mr. Tendler has been General Counsel of IDT

Telecom since 2004, and will transition out of his role as Chief Legal

Officer of IDT Corporation to again focus exclusively on the Telecom

division. Mr. Katz has been with IDT Telecom for eight years and took

over as CEO of IDT Telecom after Mr. Lichtensteins

move to the IDT Corporation executive team.

At IDT Corporation, Steve Brown is taking over the role of COO. Mr.

Brown previously served as CFO of IDT Corporation and Co-Chairman and

President of IDT Entertainment. Mr. Brown brings with him significant

management experience and will play a key role in managing and

supporting IDTs operations with a focus on

its developing businesses.

IDTs Board of Directors has also approved an

incentive compensation program for IDT Telecoms

executive team and other key employees. The program provides for sharing

with Telecom management positive cash flows generated by the businesses

they operate or develop, as well as proceeds from monetization of assets

and growth in the value created in the Telecom division above agreed

upon base values. The incentive plan is accompanied by significant cuts

in management compensation and other reductions in SG&A to help bring

Telecoms operations back to profitability.

We are confident that we have identified the

correct management team to turn Telecom around and create value for our

shareholders, said Jim Courter, CEO of IDT. We

have talked extensively about the competitive and other troubles facing

IDT Telecom, and the need for a comprehensive program to address those

difficulties. The new team includes members who have built and monetized

– for significant gain – successful operations in the telecommunications

industry, including IDT Telecom during its heyday. With the new

incentives, we are confident that this team can lead the turnaround

effort and produce value for our shareholders. Subject to oversight by

the IDT Corporation Board of Directors and management, we intend to give

the new team every chance to succeed and a fair amount of autonomy in

its management of Telecom and implementation of their strategic plans.

We have made changes at the management level

of IDT Corporation and at our largest division in order to utilize the

talent we have and focus it on growth, profitability and creation of

shareholder value, said Howard Jonas,

Chairman of IDT Corporation. The new IDT

Telecom team, led by Motti and Mikhail, knows how to identify the root

cause of problems, fix them and focus on growth and producing

predictable, profitable results. At IDT Corporation, we are lucky that

Steve has agreed to take on the role of COO. Steves

broad experience as CFO and as Co-Chairman and President of IDT

Entertainment brings discipline as well as the first-hand knowledge of

how to build and monetize businesses. We look forward to using his

talents in our varied operations.

Mikhail and I are pleased with the

confidence being placed in our team, and are excited about the

challenges ahead, said Motti Lichtenstein. We

are developing strategic plans to protect and regain our positions as

market leaders in the telecommunications arena, increase the value of

our franchise and further diversify our operations. Synthesizing Mikhails

technological and managerial expertise with this teams

historical operational strengths will accelerate our return to strong

profitability and create value for the entire IDT family.

I am pleased to have taken on a new role at

this crucial time for IDT, said Steve Brown. I

will utilize my experience in running operations to help nurture our

smaller businesses through growth, and our larger businesses through

increased focus and discipline.


IDT will host a conference call on Monday October 29, 2007, at 4:30 p.m.

Eastern time to discuss these recent developments. Members of management

will be available to address questions by participants in the call.

  • From the U.S., please dial (800) 230-1085.

  • International callers, please dial (612) 332-0226.

  • Replay available for one week at

— (800) 475-6701, Conference ID: 892539 for domestic callers,

— or (320) 365-3844, Conference ID: 892539 for international


  • Webcast of the conference call is available at the direct link

    An archived copy of the call will be available on the IDT Website, in

    the Investor Relations sections

    Presentations for at least six months after the call.

  • Additional financial and statistical information is available on the

    Investor Relations portion of IDTs

    website, at


IDT Corporation is an innovative and opportunity seeking multinational

holding company with operations that span various industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDTs

Capital division incubates newer businesses, and the companys

Spectrum subsidiary holds its spectrum license assets. IDT Telecom

provides retail and wholesale telecommunications services and products,

including pre-paid and rechargeable calling cards, consumer local, long

distance, and wireless phone services, and wholesale carrier services.

Under the Net2Phone brand name, the company also provides a range of

voice over Internet protocol (VoIP) communications services. IDT Capitals

operations include an Energy Services Company (ESCO) in New York State,

receivables portfolio management and collection, ethnic food

distribution, brochure distribution, Internet Mobile Group, Net2Phone

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

and Common Stock trade on the New York Stock Exchange under the ticker

symbols IDT and IDT.C, respectively.

In this press release, all statements that are not purely about

historical facts, including, but not limited to, those with the words believe,anticipate,expect,plan,intend,estimate,target

and similar expressions, are forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995. While

these forward-looking statements represent IDTs

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 tom, the specific

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

forward-looking statements and risk factors included in this document

are made as of the date hereof, based on information available to IDT as

of the date thereof, and IDT assumes no obligation to update any

forward-looking statements or risk factors.