NEWARK, N.J.- October 30, 2000 -IDT Corporation (NASDAQ: IDTC) today reported revenues of $265.4 million for the fourth quarter of its Fiscal Year 2000, the three months ended July 31, 2000, up 3.6% from the third quarter of 2000 and an increase of 12% over the revenues recorded during the fourth quarter of Fiscal 1999. For the fiscal year ended July 31, 2000, IDT recorded revenues of $1.069 billion, up 52% from Fiscal 1999. The financial information in this report is presented before the consolidation of the Net2Phone (NASDAQ: NTOP) subsidiary, and accordingly excludes Net2Phone's operations for the quarter.

Net income for the quarter was $32.0 million, or $0.83 per share. Net income includes approximately $85.0 million, or $2.20 per share, in after-tax, non-operating income, related to the sale of a portion of the Company's Terra Networks shares and a gain recorded by the Company in conjunction with Net2Phone's sale of shares to Yahoo, Inc. Excluding this non-operating income, the Company recorded a net loss of $53.0 million, or $1.37 per diluted share. This compares with a net loss of $5.5 million, or $0.14 per share, in the previous quarter, and a net loss before extraordinary items of $1.2 million, or $0.04 per share, in last year's Q4.

For Fiscal 2000, the Company recorded net income of $318.6 million ($8.47 per share). Excluding after-tax, non-operating income of $373.8 million ($9.94 per share), the Company recorded a net loss of $55.2 million ($1.47 per share.) This compares with net income before extraordinary items of $11.9 million ($0.36 per share) in Fiscal 1999.

"Without a doubt, this was the most exciting and momentous year in IDT's history," said Howard Jonas, Chairman and CEO of IDT. Our annual revenues surpassed $1 billion for the first time, and we completed several landmark transactions. We think that the future will be even brighter for IDT, armed with pro forma cash and liquid assets of about $40.00 per share and with several major new businesses under development."

"We're quite proud of our stock price performance this year, in the face of the weakness of the overall market and the emerging telecom industry in particular. We will continue our relentless pursuit of shareholder value in Fiscal 2001."

Fiscal 2001 Guidance

Looking to Fiscal 2001, we anticipate that our operations will continue to feel the effects of the current weakness in the international telecommunications industry. The competitive pressures that we and other international carriers are currently experiencing are expected to continue in the near term. However, we are beginning to see the first signs of industry consolidation and rationalization, which will lead to a more positive industry environment. Aided by this improved industry operating environment, and our internal cost-cutting program, we anticipate that our telecom division will return to profitability by the end of the second quarter of Fiscal 2001.

We anticipate that our wholesale carrier revenues will decline sequentially in the first quarter of Fiscal 2001, as we continue to transition our customer base away from some of our less financially stable customers, toward our target customer base, consisting of the largest, most financially secure international carriers. However, debit card revenues are expected to exhibit strong sequential growth in the first quarter of Fiscal 2001, as IDT continues to gain market share.

Therefore, in the near term, we expect to witness a temporary shift in our revenue mix, towards retail and away from wholesale. However, this does not reflect an abandonment of the wholesale carrier business model, as many of our peers have done. Rather, this reflects our perception of the timing of the wholesale and retail markets' respective cycles. We believe that we will be able to gain market share, and grow revenues, in the prepaid calling card market during the early part of Fiscal 2001, while the transition in our wholesale customer base toward a smaller, more financially stable group of large customers will take longer to complete. By the second half of Fiscal 2001, we anticipate that our wholesale/retail revenue mix will move back towards its historical 50%-50% area.

Major Developments

Since the end of Fiscal 2000, we have achieved several important milestones, including the closing of the sale of 14.9 million of our Net2Phone shares to AT&T and the settlement of our lawsuit with TyCom.

On August 11, 2000, we announced that we had completed the sale of 14.9 million of our Net2Phone shares to AT&T for $75 per share, resulting in total cash consideration to IDT of approximately $1.1 billion. We continue to own 10 million shares of Net2Phone.

On October 10, 2000, IDT reached a full and final settlement with Tyco of all pending claims brought against one another and their respective affiliates. The settlement agreement is the subject of a confidentiality agreement among the parties and only the following disclosure by IDT is permitted under the terms of the agreements.

Under the terms of the settlement, Tycom Ltd. ("TyCom") has granted to IDT Europe B.V.B.A. ("IDT Europe"), free of charge, certain exclusive rights to use capacity on the transatlantic and transpacific segments of TyCom's global undersea fiber optic network, known as the "TyCom Global Network," which TyCom is currently deploying. The settlement agreement provides for IDT Europe to obtain exclusive indefeasible rights to use two 10 Gb/s wavelengths on the transatlantic segment and two 10 Gb/s wavelengths on the transpacific segment for fifteen years from the applicable Handover Dates (as described below). TyCom previously announced that it expects the TyCom transatlantic network to be ready for service in September of 2001 and the TyCom transpacific network to be ready for service in the second quarter of 2002, the respective "Ready for Service Dates."

Under the terms of the settlement agreement, the Handover Dates for the wavelengths on the transatlantic segment are six months (for the first wavelength) and 18 months (for the second wavelength), respectively, after the Ready for Service Date of the TyCom transatlantic network and the Handover Dates for the wavelengths on the transpacific segment are six months (for the first wavelength) and 18 months (for the second wavelength), respectively, after the Ready for Service Date of the TyCom transpacific network.

Operation, administration and maintenance for the wavelengths used by IDT will be provided by TyCom for a fifteen year period after the relevant Handover Date, free of charge. TyCom has also granted IDT certain rights to resell any unused capacity on the wavelengths through TyCom as its sole and exclusive agent. In addition, IDT will also have the option, exercisable at least annually, to convert the available capacity on its wavelengths to available equivalent capacity on another portion of the Tycom Global Network.

Shareholder Value Plan

IDT today also announced the next steps of its shareholder value plan, an ongoing process that the Company began executing in the early part of the year. The shareholder value plan is designed to bring IDT's public market value closer in line with the value of its underlying assets and businesses. The first phase of the plan involved the monetization of some of our investments, including the sale of 14.9 million of our Net2Phone shares to AT&T, and the exchange of our interests in two joint ventures with Terra Networks for additional Terra shares and the subsequent monetization of some of those shares. The second part of the plan involved the strategic buyback of the Company's common shares, as we used our cash balances to repurchase shares which were selling below their asset value. The third and final piece of the plan involves a corporate restructuring, which the Company believes will facilitate a sum-of-the-parts valuation for its shares. Specifically, the restructuring is designed to both provide guidance on the Company's businesses to the investment community and to help the Company navigate the competitive landscape of the rapidly changing emerging telecom industry.

Restructuring Plan

The plan involves more clearly delineating our various business units and investments into two distinct divisions, IDT Telecom and IDT Ventures and Investments, which will initially be owned by IDT Corporation, a holding company. As part of the its restructuring program, the Company has been examining each of its business lines, and will determine which business will remain and which will be discontinued. To this point, the Company has already taken several steps to improve profitability, including streamlining its European telecom operations, and contributing its Internet businesses to a joint venture with Net2Phone.

There are four primary objectives behind IDT's restructuring plan:

Provide the investment community with a clearer picture of IDT's operations, facilitating a sum-of-the-parts valuation.

Separate entities with divergent strategies, allowing for greater management focus and accountability.

Create pure-play entities, allowing for each business to raise its own equity and/or debt capital, with the goal of completing initial pubic offerings (IPOs) for these companies when they reach critical mass and market conditions permit such transactions.

A pure-play telecom company will more easily be able to act as an acquirer or as a merger participant in a rapidly consolidating industry.

Effective upon completion of the restructuring, each unit will have its own executive management team. Howard Jonas, currently IDT's Chairman and CEO, will be Chairman of IDT Corporation, IDT Telecom and IDT Ventures and Investments. Jim Courter, currently Vice Chairman and President of IDT Corp., will be the CEO of IDT Corporation. Ira Greenstein, currently Counsel to the Chairman at IDT Corporation, will be President of IDT Corporation. Michael Fischberger, currently the Executive Vice President of Operations for IDT Corporation, will be Chief Operating Officer (COO) of IDT Corporation. Stephen Brown, currently Chief Financial Officer (CFO) of IDT Corporation, will remain in that position after the restructuring. Jonathan Levy, currently Senior Vice President of International Development, will be Executive Vice President of Business Development and Strategic Relationships for IDT Corporation, primarily responsible for the development of new business opportunities for IDT Corporation, IDT Telecom and IDT Ventures and Investments.

Hal Brecher, currently IDT Corp.'s COO, will be the CEO of IDT Telecom, with Geoff Rochwarger, currently the Executive Vice President of Telecom for IDT Corporation, in the role of COO of IDT Telecom. Motti Lichtenstein, currently the Executive Vice President of Business Development for IDT Corporation, will be the CEO of IDT Ventures and Investments. Moshe Kaganoff, currently Executive Vice President of Strategic Planning for IDT Corporation, will be the President of IDT Ventures and Investments, with Charles Garner, currently the Senior Vice President of Business Development for IDT Corporation, serving as the company's COO.

IDT Telecom will consist primarily of our international long distance telecommunications businesses, including the wholesale "carrier's carrier" division and the retail prepaid calling card business. This division will also include IDT Europe, which carries out wholesale and retail telecom operations in the fast-growing European market. We anticipate that this division will be profitable by the end of the second quarter of Fiscal 2001, as IDT emerges as one of a few survivors in the "new" emerging international telecom industry.

IDT Ventures and Investments will include the Company's various telecom and Internet-related development projects. The primary Ventures businesses currently under development are: IDT Wireless, Dial 1 Domestic Long Distance (which had previously been classified as a division of IDT's retail telecommunications business), IDT Fiber and TV.TV.

IDT Ventures and Investments will also include IDT's equity investments in other companies, including primarily the Company's 10 million shares of Net2Phone (with a current market value of approximately $170 million) and its shares of Terra Networks. We originally purchased approximately 1.16 million shares of Terra Networks in November 1999, in connection with its U.S. initial public offering, and received an additional 3.75 million shares in exchange for our ownership interests in two Internet joint ventures with Terra. To date, we have sold approximately 2.8 million Terra shares, yielding proceeds of over $110 million. Our remaining 2.1 million Terra Networks shares have a current market value of approximately $50 million. In addition, we have made a $7 million investment in Adir Technologies, the company formed by Net2Phone to develop and market network management software for Voice over IP (VoIP) networks, in which Cisco Systems also has a minority stake.

"Now, more than ever before, the emerging telecommunications industry is facing a period of relentless change, said Jim Courter, IDT's Vice Chairman and President. "We embrace this challenge, and look forward to leading this industry back to its next profitable phase."

"As our company has grown larger and has become increasingly complex, we recognize the need to create a logical corporate structure. This will give the investment community a clearer picture of IDT's business, while providing our management with a more focused environment in which to accomplish their objectives."

We anticipate that the restructuring, which is subject to regulatory approvals and the receipt of third-party consents, will close by the end of the second quarter of the Company's Fiscal Year 2001.

RESULTS OF OPERATIONS

Telecommunications

IDT's core telecommunications business reported revenues of $260.4 million for the fourth quarter of Fiscal 2000, up 12% from the same period last year, and 3.2% higher than last quarter.

Gross margins for the Company's core telecommunications business amounted to 3.6%, down from 17.9% in the third quarter of 2000. For the year, revenues were $1,039 million, up 52% from Fiscal 1999, while gross margins were 14.2%, versus 19.9% in Fiscal 1999.

EBITDA (Earnings Before Interest, Taxes and Depreciation, and excluding minority interest) in the fourth quarter for the telecommunications business amounted to a loss of $48 million, versus EBITDA of $9.0 million in the third quarter of 2000 and $10.9 million in the same quarter last year. For the year, Telecom EBITDA amounted to a loss of $6.1 million, versus EBITDA of $54.2 million in Fiscal 1999.

EBITDA in the fourth quarter of 2000 and for the full fiscal year was hampered by weaker gross margins, the result of significant pricing pressure in both the wholesale and retail markets. In addition, selling, general and administrative (SG&A) expenses rose sharply, as the Company incurred expenses to expand its European telecom business, market its domestic long distance business, and added significantly to its staff in the both the U.S. and internationally. In addition, SG&A for the fourth quarter includes approximately $10.0 million in writedowns of accounts receivable from other telecom carriers. In the wake of the financial difficulties being experienced by several emerging international telecom carriers, we have tightened our credit policies, and intend to focus on a smaller, more financially stable group of customers in the future.

WHOLESALE

IDT's wholesale carrier business reported revenues of $141.4 million, up 8.8% from the third quarter of Fiscal 2000, and a 28% increase from the fourth quarter of Fiscal 1999. However, wholesale carrier margins narrowed considerably from the levels of recent quarters, reflecting significant pricing pressure and network inefficiencies. For the year, wholesale carrier revenues of $528.8 million were 83% higher than those recorded in Fiscal 1999.

Since the early stages of Fiscal 2000, the Company has been repositioning its domestic wholesale carrier business, as its wholesale customer base has undergone a transition. The Company has focused on serving a smaller group of larger, more financially stable customers, within the rapidly changing industry environment. As a result, the Company's minutes of use, and revenues, have fluctuated in recent months. We anticipate that wholesale revenues will be approximately 20% lower in the first quarter of Fiscal 2001, compared to the fourth quarter of Fiscal 2000, as we undergo this transition. Going forward, as several weaker competitors leave the marketplace, we expect to capture a larger share of the wholesale market. Coupled with an abatement of the current pricing pressure, we anticipate that wholesale revenues will increase in the second half of Fiscal 2001 and beyond.

RETAIL

IDT's retail division posted $119.1 million in revenues, down 2.8% from the previous quarter, and 2.1% lower than the same quarter last year. Prepaid calling card revenues amounted to $111.9 million for the fourth quarter, down 4.3% from the previous quarter, and 2.3% lower than the fourth quarter of Fiscal 1999. Prepaid calling card margins narrowed, reflecting the general competitive pricing pressure witnessed by prepaid calling card providers.

Looking to Fiscal 2001, the Company expects to make market share gains, at the expense of competitors who have left the industry, or are significantly scaling back their operations. Consequently, we anticipate that prepaid calling card revenues will be approximately 25% higher in the first quarter of Fiscal 2001 than in the fourth quarter of Fiscal 2000. IDT believes that it is now the dominant provider of prepaid calling cards to the various ethnic communities in the United States, and remains committed to serving this rapidly growing segment of the international telecommunications industry.

Domestic Long Distance

Domestic long distance revenues for the quarter were up 59% from the third quarter, and increased 80% from the same quarter in Fiscal 1999, as the Company's $0.05 per minute long distance plan continues to attract new customers. We currently have over 150,000 long distance customers, and our customer acquisition costs continue to decline each month. During the quarter, we incurred significant sales and marketing expenses related to the domestic long distance business, spending on print and television advertising to promote the "1+ Direct Dial" long distance product.

We anticipate that the domestic long distance business will continue its strong growth in Fiscal 2001, as we continue to add customers. In addition, gross margins for this business, which improved significantly throughout Fiscal 2000, are expected to continue to improve in Fiscal 2001.

Upon completion of the corporate restructuring described above, the domestic long distance unit will operate as a separate entity within the IDT Ventures division, as its focus, and targeted customer base, is different from those of the Company's core telecommunications business lines. In this way, we will be able to grow this business to critical mass, building a business that will be large enough and profitable enough to obtain its own financing in the future.

IDT EUROPE

For the fourth quarter, IDT Europe, the Company's European telecommunications division, reported a net operating loss of approximately $21.0 million, compared to an operating loss of approximately $11.0 million in the third quarter of Fiscal 2000.

Results were hampered by significant pricing pressure in both the wholesale and retail markets. In addition, wholesale gross margins were impacted by capacity constraints, while the Company incurred significant promotional and marketing costs related to offering its prepaid calling card products in several new markets.

IDT has recently launched a major cost-cutting program in Europe, designed to improve the division's profitability, while properly positioning IDT Europe for further growth. Over the first half of Fiscal 2001, we anticipate that IDT Europe's revenues will decline from the levels recorded during the second half of Fiscal 2000, as we eliminate unprofitable business lines and reposition our targeted customer base. In addition, we are currently consolidating our European operations, to focus on fewer, more promising geographic telecommunications markets. Toward that end, IDT has recently eliminated approximately 15% of its European workforce.

"Our European telecom division remains one of IDT's crown jewels," said Hal Brecher, IDT's Chief Operating Officer. "By focusing on profitable growth, and by accurately diagnosing, and reacting to, frequent market changes, we can build IDT Europe into one of the premier alternative telecommunications companies in Europe."

INTERNET

IDT's Internet division recorded an operating loss for the quarter of $7.0 million, versus a loss of $4.0 million in the prior quarter and a loss of $2.0 million in the fourth quarter of Fiscal 1999. Internet revenues were flat, compared to those of the prior quarter, and were 16% lower than during the same quarter last year.

For the year, the Internet division's operating loss came to $18.1 million, compared to $8.2 million in Fiscal 1999. Revenues declined 19% from those recorded in Fiscal 1999.

In recent years, our Internet business has pursued a targeted niche strategy, seeking to offer products and services to markets where we would not be required to incur the significant customer acquisition costs generally associated with "mass market" Internet service providers. Consequently, our Internet strategy shifted several times through Fiscal Years 1999 and 2000, as we attempted to profitably exploit market opportunities in the Internet industry. IDT took great strides in this direction during Fiscal 2000, as we completed several strategic deals.

During the first quarter of Fiscal 2000, we formed two Internet joint ventures with Terra Networks, the leading provider of Internet services to the Spanish and Potuguese-speaking world, to provide Internet access and to operate an Internet portal. As part of that transaction, we participated in Terra Networks highly-successful U.S. IPO in November 1999. In May 2000, we agreed to exchange our interests in these two joint ventures for additional Terra Networks stock. Through these transactions, and the subsequent monetization of a portion of our Terra Networks holdings, we have been able to monetize part of our Internet access customer base. This was accomplished at a price that was much higher, on a per-customer basis, than the public market values currently being attributed to most Internet Service Providers.

Going forward, we have formed a joint venture with Net2Phone, which will provide broadband Internet access. We will contribute our remaining dial-up Internet access customer base to the joint venture, in return for a 50% ownership interest in the venture. This represents the latest step in our plan to create value from our Internet business.

IDT VENTURES

The IDT Ventures division recorded an operating loss of $15.5 million in the fourth quarter, related to ongoing start-up and development costs, compared to a $8.8 million operating loss in the third quarter of Fiscal 2000. IDT Ventures recorded revenues of approximately $1.5 million in the fourth quarter. IDT Ventures did not record material revenues in previous periods.

The Company plans to take advantage of its strong financial position to make the expenditures necessary to develop several promising new businesses. An update of some of the Company's major new Ventures businesses follows:

TV.TV

In September 2000, we announced the formal creation of TV.TV, a new venture designed to deliver high quality online video content, as well as television and entertainment services to the emerging broadband market. TV.TV (also known as "Genie" while in its development stage) will provide free television on demand supported by targeted advertising, pay-per-view events, subscription services and e-commerce revenues.

TV.TV is constructing its own private broadband network, to enable it to deliver content at quality that exceeds that available through the "public" Internet. TV.TV will co-locate its servers at cable head-ends and DSL aggregation points, connecting broadband users to its network. TV.TV's platform is neutral, as it can be accessed through cable modems, DSL, digital cable set top boxes, or even wireless services.

TV.TV is currently developing proprietary technology for a range of advanced security solutions, including encryption, digital ``fingerprinting'' and ``watermarking'' that protect content against piracy and unlicensed use or duplication. By converting film and other programming content into an encrypted, digital format that can be streamed on the Web, the TV.TV platform offers a secure, turnkey solution for moving entertainment properties onto the Internet, where they can be accessed by a diverse, geographically dispersed and growing online audience.

TV.TV is due to be operational in multiple pilot markets by the end of calendar 2000. The service will be launched in a market-by-market rollout, beginning with New York City, San Jose, CA and Billings, MT, to anyone with a high-speed, broadband connection to the Internet.

We believe that TV.TV offers a "win-win" scenario for viewers, advertisers, programmers and cable system operators. Viewers will finally be able to watch what they want, when they want to see it. Advertisers will get a more targeted demographic, as their advertising will be shown to viewers who have "selected" a particular show, movie or event. Programmers will benefit from the increased distribution potential offered by TV.TV, and cable system operators will be able to broaden their viewing audience.

IDT Wireless

IDT Wireless is creating new applications in wireless communication. IDT Wireless has introduced caller-paid paging, which allows pager owners to do away with monthly bills for paging service, as the caller pays the cost of the page. Using its prepaid calling card distribution channel, which features over 100,000 retail outlets across the U.S., the Company has made great strides in making its pagers widely available to the public.

In June 2000, IDT launched its FREEWAY pagers, featuring the calling-party-pays technology. With Freeway Pagers, users pay a one-time purchase price for the pager, with no need to pay again for service. FREEWAY pagers are available through the same extensive retail distribution network that currently sells IDT Prepaid Calling Cards, as well as many national and regional retail chain stores. The FREEWAY numeric pager has a suggested retail price of $49.95, while the FREEWAY text model has a suggested retail price of $79.95. With the FREEWAY numeric pager, the calling party is charged 35 cents for each page. The FREEWAY text messaging pager lets a calling party send a text message of up to 120 characters for a 50 cents charge.

Also in June 2000, we announced the launch of our branded wireless program, including pre-paid wireless mobile phone service, with enhanced features, such as Voicemail, Caller ID and Call Waiting. IDT's network services are provided on the Sprint PCS? Nationwide wireless Network. Under IDT's Private Label Services arrangement with Sprint PCS, IDT customers have access to PCS service anywhere on the Sprint PCS Nationwide Network, serving more than 300 major metropolitan areas. Customers can purchase wireless minutes, as needed, in amounts ranging from $25 to $200. IDT's prepaid wireless service is initially being offered in retail outlets in the New York Metropolitan area, with distribution to be phased in nationwide. IDT Wireless is currently developing technology enabling it to employ the caller-paid concept to cellular telephones. An individual will own a live wireless telephone with no monthly fee and can receive calls for which the caller pays.

IDT Wireless recorded approximately $1.1 million in revenue during the fourth quarter of Fiscal 2000, with revenues expected to ramp-up significantly throughout Fiscal 2001. The Wireless division incurred significant development expenses during the quarter, and these expenditures are expected to continue for at least the next several quarters.

IDT Fiber

IDT Fiber's strategy is to be the low-priced bandwidth supplier of choice to both IDT Telecom and to other major telecom carriers. This division has substantial submarine fiber capacity -- including the fiber capacity obtained through the Tyco settlement and our interest in the SAm-1 Latin American submarine fiber optic cable system -- upon which to build its business. In addition, IDT Fiber will seek targeted acquisitions of bandwidth, taking advantage of the current, short-term buyer's market for bandwidth, and the financial difficulties being encountered by several major owners of bandwidth. Backed by the financial strength of IDT Corporation, IDT Fiber intends to accumulate a large portfolio of fiber assets, without incurring debt. In addition, IDT Fiber expects to be in a position to swap some of its existing fiber assets for other strategic fiber assets. This will allow IDT Fiber to occupy a low-cost-provider position in the industry, and to offer attractive, unique, short-term and market-indexed pricing options to the numerous international telecom carriers who will be seeking bandwidth - many of whom are already customers of IDT's wholesale carrier division.

We anticipate that the Fiber division will eventually become an integral part of a stand-alone IDT Telecom company, given the significant, natural synergies which exist between the Fiber business and our existing wholesale carrier and prepaid calling card business lines.

FreeAtLast.com

On October 26, 2000, IDT announced that its FreeAtLast.com Internet service would transition from a free Internet service to a paid subscription plan. FreeAtLast.com generated an operating loss of approximately $2.8 million during the fourth quarter of Fiscal 2000.

CAPITAL MARKETS

IDT Corporation announced today that its Board of Directors has approved an increase in the Company's ongoing share repurchase program to 12.5 million shares from 10.0 million shares. Previously, in May 2000, the Company announced that its Board of Directors had authorized the repurchase of up to five million shares of the Company's common stock. In July, we announced that our Board of Directors had authorized an increase in the program, to ten million shares. To date, the Company has repurchased 5,118,755 shares under the buyback program.

IDT also announced that it had recently purchased approximately 2.2 million shares of AT&T common stock, in open market transactions, for an aggregate purchase price of approximately $50 million.

Norman Rosenberg, CFA
VP, Finance & Capital Markets Manager
973-438-4001

Mary Jennings
Investor Relations, Manager
973-438-3113