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IDT Entertainment Announces Formation of IDT Entertainment Sales New Company Will Sell and Distribute IDT Entertainment and 3rd Party Product Worldwide

Newark, N.J., June 17, 2004 – IDT Entertainment today announced the formation of IDT Entertainment Sales (IDTeS), a new company responsible for the worldwide distribution of content from IDT Entertainment companies, as well as third-party producers. IDT Entertainment companies include Anchor Bay Entertainment, Manga Entertainment, DPS, DPS/Film Roman, Mainframe Entertainment and DKP Effects. IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), a multinational carrier, telephone and technology company.

“With the creation of IDT Entertainment Sales we dramatically expand our distribution capability,” said Jim Courter, IDT’s CEO. “Now, not only do we have DVD distribution to retailers in the U.S., Canada and the UK through Anchor Bay, but we also gain the ability to acquire and distribute programming to television broadcasters worldwide.”

IDT Entertainment is headed by Steve Brown, Chairman and Morris Berger, CEO.
Rick Mischel, CEO of Mainframe Entertainment has been named CEO of IDT Entertainment Sales. Mr. Mischel will continue to serve as Mainframe’s CEO. John W. Hyde, CEO of DPS/Film Roman and COO of IDT Entertainment, will oversee operations of IDT Entertainment Sales as its Vice Chairman with Steve Brown and Morris Berger as Co-Chairs.

Andrew Berman has been named Executive VP of Sales for IDT Entertainment Sales. In that position, he will be responsible for the sales, marketing and distribution for all company properties. Previously, Mr. Berman led the U.S. and worldwide sales efforts for TMS Entertainment, a well-known Japanese animation production and distribution company.

IDT Entertainment Sales will represent the worldwide sales and marketing of IDT Entertainment properties, which include in-house productions of animated features, series, specials and live action feature films. In addition, IDTeS will acquire third-party properties for global distribution. The new company’s main office will be located in Los Angeles. The company will also have a UK office in London.

“The formation of IDT Entertainment Sales will provide IDT Entertainment with a global marketing presence and a significant new source of revenue,” said Morris Berger, CEO of IDT Entertainment. “We plan to immediately enter the worldwide distribution marketplace with IDT Entertainment programming and to leverage our existing relationships with producers, production companies and studios to acquire the distribution rights for other premier properties.”

IDT Entertainment Sales will be making its debut at MIPCOM, the International marketplace for entertainment content, in October with an impressive line up of projects, including the first look at IDT Entertainment’s development of product from the recently announced deals with Stan Lee’s POW! Entertainment, LLC and Todd McFarlane’s Spawn. In addition, IDTeS will unveil a preview of the new Inspector Gadget computer generated (CG) DVD feature, as well as a number of new properties from the IDT Entertainment group of companies.

“IDT Entertainment is now a fully vertically integrated worldwide production and distribution company,” said Rick Mischel, CEO of IDT Entertainment Sales. “With IDT Entertainment Sales, we have the opportunity to take the next step and establish IDT Entertainment as the leader in branded entertainment programming for the global marketplace.”

IDT Entertainment, a division of IDT Corporation, is a vertically integrated entertainment concern that develops, produces and distributes proprietary and licensed entertainment content, with a particular focus on high-quality animation. IDT Entertainment is in the early stages of production on two proprietary CG animated feature films, Gene Roddenberry’s Starpoint Academy and a feature yet to be named, directed by Christopher Reeve. IDT Entertainment consists primarily of the following wholly owned or controlled subsidiaries:

·Anchor Bay Entertainment is one of the largest independent home video distributors of DVDs and videos to retail outlets, and has a significant presence in the children, horror and fitness genres. Anchor Bay’s library consists of over 3,500 owned or licensed titles, including the Thomas the Tank Engine series, the Halloween series and the Crunch fitness series.

·Manga Entertainment is a film company specializing in the production, distribution and worldwide marketing of Japanese animation or “anime” for home video releases, theatrical, and television broadcast.

·Digital Production Solutions, or DPS, is a Computer Generated (CG) animation production company. DPS’ proprietary Global Animation Studio platform enables numerous animators at diverse locations to work cooperatively and simultaneously on the same animation project utilizing IDT’s telecommunications infrastructure.

·DPS/Film Roman is a leading third-party provider of television animation services and special effects. DPS/Film Roman has been the animation studio for The Simpsons, King of the Hill, and Tripping the Rift, now airing on the Sci-Fi network.

·Mainframe Entertainment is a leading provider of CG animation for television and direct-to-video products such as the Barbie DVD collection for Mattel, Popeye and Scary Godmother.

·DKP Effects is a 3-D animation and special effects production company, well known for its innovative work for movies and television.

IDT Entertainment has completed several investments and joint ventures to secure access to brand name characters and content as well as distribution channels for family-friendly content. In July 2003, IDT purchased a minority equity interest in Vanguard Animation and entered into a joint venture with Vanguard to co-produce and co-own future Vanguard properties distributed in theaters, direct-to-video and on television. Vanguard Animation is a CG animated feature film company founded by John Williams, the originating producer of Shrek. Vanguard’s initial production, Valiant, is the first in a series of four Vanguard-produced films to be distributed by Disney. IDT Entertainment has an equity interest in Archie Comics Entertainment, as well as rights to co-develop and co-produce animated properties based upon selected characters of Archie Comics Entertainment. IDT has also entered into a joint venture with the Christian Broadcasting Network to develop and distribute family-friendly programming. IDT Entertainment also owns a minority interest in Stan Lee’s POW! Entertainment. In connection with IDT Entertainment’s investment in POW!, the companies agreed to co-develop and co-produce a minimum of six animation projects for Direct-to-DVD distribution and broadcast. Recently, IDT Entertainment entered into a multi-faceted development, production, and distribution agreement with Todd McFarlane Productions (TMP) to produce animated programming and merchandise based on Spawn and other TMP original intellectual properties.

Important Note: 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 IDT’s 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, including, but not limited to, those described in IDT’s most recent report on SEC Form 10-K (under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K and other filings IDT may make with the SEC.