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IDT Corp Will Appeal Award in Employment Contract Dispute

Company to Take Earnings Charge

IDT Corporation (NYSE: IDT) announced today that it will take legal

steps to reverse a $10.5 million award by a Newark, N.J. jury in a

dispute with a former employee who worked at IDT for only six months.

“The Company respectfully disagrees with the jury’s decision in this

case. We will pursue all avenues of redress, including post-trial

motions and, if necessary, appeals, to reach a fair result,” said Jim

Courter, IDTs Chief Executive Officer.

Pending a final resolution of this case, the Company also announced that

it will take a $10.5 million pre-tax litigation charge against earnings

in the third quarter.

On Friday, a federal jury awarded former IDT employee Alfred West $10.5

million in the latest twist to this long-running litigation with the


West, who worked at IDT in 2001 for only six months, asserted breach of

contract and related claims against IDT. After the judge dismissed the

contract claim several years ago, a trial on the related claims in 2005

resulted in a $1.5 million jury award for West.

That award, however, was set aside by the trial judge as being

unsupported by the evidence. In an appeal by West of that decision, an

appellate court reinstated West’s breach of contract claim, which led to

the second trial that concluded last week.

About IDT Corporation:


Corporation is an innovative and opportunity seeking multinational

holding company with operations that span several industries. Through

its Telecom subsidiary, IDT provides telecommunications services

worldwide to the retail and wholesale markets. IDT Energy operates an

Energy Services Company (ESCO) in New York State. IDT subsidiary

American Shale Oil Corporation (AMSO) manages IDTs

oil shale ventures. IDT’s Capital division incubates newer businesses,

and the Company’s Spectrum subsidiary holds its spectrum license assets.

IDT Telecom provides retail and wholesale telecommunications services

and products, including pre-paid and rechargeable calling cards,

consumer local, long distance, and wireless phone services, and

wholesale carrier services. Under the Net2Phone brand name, the Company

also provides a range of voice over Internet protocol (VoIP)

communications services. IDT Capital’s operations include receivables

portfolio management and collection, 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.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.