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IDT Telecom Achieves Minutes-of-Use Records in July Telecom minutes-of-use for Retail and Wholesale Divisions Achieve Record Monthly, Annual Levels

IDT Corporation (NYSE: IDT.B, IDT) today announced that its IDT Telecom subsidiary’s telecommunications minutes-of-use for the month of July 2002 and for the Fiscal Year ended July 31, 2002, grew to record levels.

For the month of July, IDT Telecom generated approximately 1.2 billion minutes of use, representing the fifth consecutive month of over one billion minutes. July minutes-of-use increased 10% from June’s levels, and were 47% higher than those recorded in July 2001. For the full Fiscal Year 2002, IDT Telecom recorded over 10.0 billion minutes of use, up 57% from Fiscal 2001.

“The impressive growth in the number of minutes carried by IDT Telecom is a clear indication that both retail and wholesale customers are turning to IDT for their telecommunications services in these increasingly uncertain times,” said Jim Courter, Vice Chairman and CEO of IDT Corporation. “I look forward to continued strong growth in Fiscal 2003, driven by gains in all of our major business lines and geographic regions of operation.”

Minutes-of-use for both the Retail and Wholesale divisions achieved strong increases and new monthly records in July, and made significant gains in Fiscal 2002. Retail minutes increased 6% from June’s levels, and were 44% higher than in July 2001. Wholesale minutes advanced 20% over June’s total, and were 82% higher than in July 2001. The above minutes-of-use numbers does not include the minutes-of-use from IDT’s fast growing consumer domestic long distance division.

“A few months ago, we announced that IDT Telecom had broken the one billion minute per month barrier, and we haven’t looked back since,” said Motti Lichtenstein, CEO of IDT Telecom. “During Fiscal 2003, we will continue to add to our network infrastructure while exerting our customary financial discipline, paving the way for further growth and solid returns on our capital investments.”

IDT, through its IDT Telecom subsidiary, is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide.

Through its own national telecommunications backbone and fiber optic network infrastructure, IDT Telecom provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. 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 recently acquired Winstar Communications. IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT.B and IDT. As of June 10, 2002, there were 53.4 million shares of Class B common stock (IDT.B) outstanding, and 24.9 million shares of common stock (IDT). Of these, 4.0 million shares of Class B common stock and 5.4 million shares of common stock were held by units of IDT Corporation.

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2001 and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward looking statements.