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IDT Corporation (NYSE: IDT; IDT.C) said today that it will spin-off a
portfolio of patents related primarily to communications over computer
networks, including Voice over Internet Protocol (VoIP), and the
licensing business related to those patents to its shareholders.
IDT shareholders will receive one share in Innovative Communications
Technologies, Inc. (ICTI) which will consist of the patents and the
related licensing business, for every five shares of IDT. The record
date and share distribution dates have not yet been determined. Upon
completion of the spin-off, ICTI is expected to trade on the
over-the-counter market.
“It is likely that many companies are currently using the technologies
covered by these patents,” said Howard Jonas, IDT’s Chairman, Chief
Executive Officer and the founder of Net2Phone, a pioneer in VoIP
telecommunications that is now a wholly owned subsidiary of IDT.
“As an independent publicly traded company, ICTI will be optimally
positioned to license these patents and enforce its intellectual
property rights. This spin-off maximizes the potential to create
substantial value for our shareholders from this IP over the long term,”
Mr. Jonas added.
Completion of the spinoff is subject to final approval by IDT’s board of
directors, confirmation of the tax-free nature of the transaction, as
well as effectiveness of a Form 10 registration statement filed with the
SEC.
ICTI’s Form 10 was filed yesterday with the SEC and includes detailed
information about ICTI, the spinoff and related matters. ICTI’s Form 10
is available through the SEC website www.sec.gov.
ICTI has been assigned Central Index Key (CIK) 1515646.
ICTI will distribute an information statement to stockholders following
completion of the SEC’s review of the Form 10. IDT’s board of directors
reserves the right to amend, modify or abandon the spin-off and the
related transactions at any time prior to the distribution date.
About IDT Corporation:
IDT
Corporation (www.idt.net)
is a consumer services company with operations primarily in the
telecommunications and energy industries. 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.
Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net
