IDT Europe - Corporate - Press Releases

NEWARK, N.J., Oct 26, 2000 (BUSINESS WIRE) - IDT Corporation (NASDAQ: IDTC) announced that effective today it plans to exit the Free Internet Business Model. The company will transition its FreeAtLast.com Internet service from a free service to a subscription plan. IDT is a leading facilities-based multinational telecommunications company.

"The well-publicized, difficult Internet advertising environment has forced us to reassess our Internet strategy," said Howard Jonas, Chairman and CEO of IDT. "We have looked at various strategies to continue FreeAtLast, including merging it into or selling it to another Internet service provider. Thus far, these attempts have not been fruitful."

"The free Internet model has not proven itself to be a viable business model at this time," said Jim Courter IDT Vice Chairman and President. "This is a strategic move. We have decided to insure the company's financial future by focusing on growth areas. The free dial-up Internet business is not one of them."

IDT will keep the free service in operation until Monday, November 27, 2000. This 30 day grace period is designed to give FreeAtLast users time to transition to our paid service or establish service and new e-mail accounts with another Internet service provider.

After the grace period, users who decide they would like to continue to receive our unlimited high-speed Internet access, faxing, e-mail and Internet phone calls, will have the option of paying a flat fee of $9.95 per month.

"IDT does not want to just abandon its loyal Internet users," added Howard Jonas. "So as an accommodation, we will continue the service free for thirty days. Beyond that, users seeking a fast connection without the incessant intrusion of banner advertising will have the option of continuing the service, at a fair price, where we believe we can cover our costs."

IDT is a leading facilities-based multinational carrier that offers a broad range of telecommunications services to wholesale and retail customers worldwide. Through its own telecommunications backbone and network infrastructure IDT provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, Internet access and Digital Subscriber Line (DSL) service. The Company's Ventures division is developing several innovative telecom and broadband related businesses. IDT's experience with new ventures, includes the creation and initial public offering of the Internet Telephone Company, Net2Phone (NASDAQ:NTOP). IDT Technology Ventures supports IDT in selecting and incubating new technology ventures.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words "believes," "anticipates," "expects," and similar words and phrases. Such forward-looking statements include, among other things, 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. Such forward-looking statements also include our expectations concerning factors affecting the markets for our products, such as changes in the U.S. and the international regulatory environment and the demand for long-distance telecommunications, Internet access and Internet telephony services. Actual results could differ from those projected in any forward-looking statements. The forward-looking statements are made as of the date of this press release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth from time to time in our reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our Quarterly Report on Form 10Q for the period ended April 30, 2000.