NEWARK, N.J. - March 1, 2000 - IDT Corporation (NASDAQ: IDTC) congratulates its partner 2AM Inc. for smashing the two (2) million banner ads a day milestone on its Internet game hosting site. 2AM Games is located at www.2amgames.com. IDT, a leading multinational carrier, phone company, and Internet service provider, owns a 25 percent stake in 2AM Inc., a privately-held Internet technology company based in Newark, New Jersey with a Research & Development arm in Israel. To our knowledge, 2AM is the only game hosting site on the Internet to offer highly graphical, massive multi-player online games totally FREE.

"IDT is extremely pleased and excited about its venture with 2AM, which has clearly distinguished itself a very popular game hosting site on the Internet," said Howard Jonas, IDT Chairman and CEO. "That the company has achieved two million banner impressions a day highlights not just the rapid growth in visitors to the site, but the fact that visitors are coming to the site and staying."

Revenue from advertising has had spectacular growth since this time last year. 2AM reports that revenue generated per subscriber now exceeds 2AM's cost of subscriber acquisition . In addition, the number of banner impressions shown this quarter has doubled since last quarter. The 2AM site has become very "sticky", with the average user playing and chatting at the site between two to three hours per visit. 2AM is also one of the few Internet gaming companies to have actually achieved a profit, despite the fact that playing of its eight high-quality games is completely free of charge.

"Our user costs-per-hour are far less than what it costs our competitors to support a user per hour," said Eli Ehrman, President of 2AM Inc. and the mastermind behind the company's proprietary CREATION technology. "Our underlying Internet technology enables us to host rich, high-quality, multi-player games at extremely low operating costs per user. Even while offering our games completely free, the online advertising revenues alone have turned us profitable within months of launching."

"IDT applauds 2AM Games on its record of phenomenal growth," said Jim Courter, IDT President. " We are very excited and look forward to the launch of the new technologies they have on the drawing board."

2AM Inc.'s unique patented 2AM CREATION technology enables the site to offer the company's own "Massive Multi-player" application, which allows thousands of players to participate in a single interactive game on the Internet, no matter where they are located geographically.

The same proprietary technologies, which have made the 2AM Games service successful, can also be employed to build and support non-gaming interactive applications for the Internet. Two of these are a community building service and an online advertising tool both to be launched this year.

The same proprietary technologies, which have made the 2AM Games service successful, are being employed to build and support a suite of non-gaming Internet applications geared toward online community building, improving web-site 'stickiness' and interactivity, and boosting the profitability of Internet businesses. Several of these applications are slated for launch later this year.

IDT is a leading multinational carrier that combines its position as an international telecommunications operator with its experience as an Internet service provider to provide a broad range of telecommunications services to its wholesale and retail customers worldwide.

Through its own national 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.

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IDT Investor Relations
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