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IDT Selected as Exclusive Calling Card Provider by Walgreens

NEWARK, N. J. — December 10, 2002 – IDT Corporation (NYSE: IDT.B; IDT), a leading multinational carrier and telephone company, has been selected as the exclusive prepaid calling card provider to Walgreen Co. (NYSE: WAG), the nation’s largest drugstore chain. IDT will supply Walgreen-branded pre-paid calling cards to the drugstore chain’s nearly 4,000 stores.

Howard Jonas, IDT’s Chairman, said, “Walgreens is America’s No. 1 retail pharmacy chain, and IDT is one of the world’s healthiest telecommunications companies. Together, we can offer customers nationwide a high-quality calling card program.”

“We’re delighted that IDT was selected over all the major domestic phone companies competing to be Walgreens phone card provider,” said Jim Courter, IDT CEO. “Walgreens and IDT are a great fit. Walgreens is known for providing consumers with good value and reliable service. And IDT’s extensive domestic and international infrastructure and rock solid balance sheet will insure consumers get very competitive rates from a phone company that will be around a long while.”

The new Walgreens phone cards will be sold in $10, $20 and $40 denominations and are available now.

“This agreement with Walgreens, one of the largest and most trusted retailers in the U.S., is very significant for IDT Telecom in terms of both revenue and prestige,” said Motti Lichtenstein, CEO IDT Telecom. “Our Private Label calling card division has been hard at work signing up major companies as clients, offering quality service at competitive prices.”

Walgreen Co. is the nation’s largest drugstore chain with fiscal 2002 sales of $28.7 billion. The company operates 3,954 stores in 43 states and Puerto Rico, in addition to Walgreens Health Initiatives, which provides mail service prescriptions, pharmacy benefits management and other clinical services.

IDT Corporation, through its IDT Telecom 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 own 95% and 5 % of IDT Telecom, respectively. IDT Media is the IDT subsidiary principally responsible for the Company’s initiatives in media, new video technologies and print media.

Through its various subsidiaries, IDT has interests in several telecom, Internet-related and media companies. IDT acquired assets of Winstar Communications in December 2001. IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT.B and IDT. As of October 18, 2002, there were about 54.1 million shares of Class B common stock (IDT.B) outstanding, and about 25.0 million shares of common stock (IDT). Of these, approximately 4.0 million shares of Class B common stock and approximately 5.4 million shares of common stock were held by IDT Corporation.

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.