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IDT Named Exclusive Calling Card Provider for Drug Fair and Cost Cutters Stores IDT to Provide Both Domestic and International Point-Of-Sale Calling Cards

Newark, N.J., September 5, 2003 — IDT Corporation (NYSE: IDT, IDT.C), a multinational carrier, telephone and technology company, today announced that it has been selected as the exclusive calling card provider for Community Distributors Inc.’s Drug Fair and Cost Cutters stores. Community Distributors has 52 retail stores located throughout New Jersey.

“Very quickly IDT has become a leader in point-of-sale calling card sales,” said Jim Courter, IDT’s CEO. “’Point-of-sale,’ calling cards activated at the register, are a multi-billion dollar business. With this agreement, Community Distributors joins a growing list of value conscious retail chains that have chosen IDT as their point-of-sale calling card provider.”

This agreement with Community Distributors Inc. marks the first time an IDT branded point-of-sale calling card will be sold at retail. The cards have both domestic and international capability and are offered with and without a connection fee. Consumers can choose from a $5 or $10 card or cards with a face value of 40 or 80 minutes. The cards are now available in all Drug Fair and Cost Cutters stores.

“This agreement provides us with a new product; a generic IDT, point-of-sale calling card,” said Motti Lichtenstein, CEO of IDT Telecom. “We intend to aggressively market this product and believe it will play an important role in the growth of our point-of-sale cards to mid-sized retail chains.”

The cards will be displayed on register racks in Drug Fair and Cost Cutters stores. Marketing plans include ads in Drug Fair circulars and coupon books.

“Quality and value are the benchmarks we use to evaluate the products we sell,” said Michael Quinn, Community Distributors’ Executive Vice President for Merchandising. “The new calling cards from IDT meet our standards and the expectations of our customers.”

IDT Corporation, through its IDT Telecom, Inc. subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. IDT Telecom, by means of its own national telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media Corporation own 95% and 5% of IDT Telecom, respectively. Liberty Media Corporation also owns a 5.6% stake in IDT Media. IDT Media, Inc. is the IDT subsidiary principally responsible for the Company’s initiatives in media, new video technologies and print media. Winstar Holdings, LLC is the IDT subsidiary through which we provide broadband and telephony services to commercial and governmental customers through a fixed-wireless and fiber infrastructure. In December 2002, we announced that the services offered by Winstar would begin to be offered under the name “IDT Solutions.” Net2Phone, Inc., a subsidiary of IDT Corporation, is a leading provider of high-quality global retail Voice over IP services, either directly or via a partner.

IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use 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 our 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 our 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. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our retail telecommunications services, particularly our prepaid calling card business; availability of termination capacity; financial stability of our customers; our ability to maintain carrier agreements with foreign carriers; effectiveness of our marketing and distribution efforts; increased competition, particularly from regional bell operating companies; our ability to manage our growth; competitiveness of our Winstar subsidiary; impact of government regulation; our ability to obtain telecommunications products or services required for our products and services; and general economic conditions, particularly in the telecommunications markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.