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IDT Corporation to Acquire a Controlling Interest in EGL Oil Shale LLC

R&D Effort to Unlock Americas Vast
Untapped Unconventional Fuel Reserves

IDT Corporation (IDT) and EGL Oil Shale, LLC (EGL) announced today that

IDT has signed a binding Letter of Intent to acquire a 75% interest in

EGL. EGL is one of three holders of 10-year leases granted by the US

Bureau of Land Management (BLM) to research, test and demonstrate the

potential for commercial oil shale production in Western Colorado. This

area is estimated to contain the worlds

richest oil shale reserve, with 1.2 trillion barrels of potentially

recoverable oil. The 10-year lease affords EGL the opportunity to

demonstrate its innovative oil shale recovery technology in the field.

The other holders of similar leases in Colorado are Royal Dutch Shell

and Chevron. Proceeds from IDTs investment

will be used to fund EGLs Research,

Development and Demonstration plan. Once EGL demonstrates the economic

and environmental viability of its technology, it will have the

opportunity to expand its lease to 5,120 acres for commercial


IDTs investment in EGL is part of a broader

strategic initiative to significantly expand its operations in the

energy sector. Claude Pupkin, SVP of Corporate Development, stated: We

believe that EGL represents a great strategic fit as it combines oil &

gas expertise, an entrepreneurial spirit and an innovative approach to

the oil shale opportunity.

Oil shale is a mineral that contains a solid hydrocarbon that requires

heating to high temperatures to produce oil and gas. Past efforts to

commercialize oil shale in Colorado were based upon mining and surface

processing methods. EGLs approach is to

recover the shale oil underground without mining by using modern oil and

gas drilling, completion and recovery technologies not available to

earlier developers. Following an environmental assessment, EGLs

process was given a finding of No Significant Impact by the BLM. The

transaction may be subject to applicable regulatory approvals.

We are extremely pleased to be working with

IDT, a company that shares our values and approach to solving the energy

challenges facing our country and the world,

said Wes Perry, EGLs President. EGLs

mission is to be a good steward of the asset, providing for an energy

independent America in an environmentally conscious manner.

Howard Jonas, Chairman of IDT Corporation, stated: We

are extremely excited to join forces with EGL in this effort. A

successful development of this resource will help break our countrys

dependence on imported oil, greatly improving our national security

while making a significant contribution to the US economy.

About EGL

E.G.L. Oil Shale, LLC is a subsidiary of EGL Resources, Inc., a

privately owned independent oil & gas company with operations in the

southwestern United States. EGL Resources is a working alliance of

petroleum geologists, geophysicists, engineers, management and property

operating professionals based in Midland, Texas.

About 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. IDT Energy operates an

Energy Services Company (ESCO) in New York State. 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, 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.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.