NEWARK, N.J. - May 30, 2000 - IDT Corporation (NASDAQ: IDTC) today announced that IDT Europe, its European telecom subsidiary, has entered into an agreement with Alcatel (NYSE: ALA) to introduce Intelligent Network (IN) services for IDT's growing base of European clientele. IDT is a leading multinational carrier, telephone company and Internet service provider.

Utilizing advanced S-12 technology from Alcatel, a global leader in networking solutions, the IN platform will enable IDT Europe to roll out a suite of integrated, next-generation communications products and services to its business and residential customers. Customers will be provided with an integrated system to simplify and facilitate the business of communicating.

"IDT Europe is demonstrating its leadership in offering its customers the most advanced and sophisticated products and services available, said Howard Jonas, IDT's Chairman and CEO. "The introduction of intelligent network services further positions IDT as one of the premier emerging players in the European marketplace."

One of the first applications supported by the IN platform will be a high-end, robust version of IDT Europe's pre-paid, rechargeable and "smart" calling cards. The IN technology allows for a highly versatile, customized product that meets the unique needs and requirements for each user. For example, a corporate customer could design a flexible, scalable calling card program that assigns a certain number of minutes to individual users, allows for calls to be placed within specific geographic locales and time thresholds.

The "smart" nature of the IN platform enables other high-end applications, such as rapid customer tracking. By accessing a user's unique caller identification number, the service will simultaneously contact multiple telephone numbers for the user, without the long wait times typically associated with Personal Assistant services.

IDT Europe will introduce basic IN services to its customers in Western Europe in the third quarter of this year, with plans for a roll out in Eastern Europe next year. The Company will operate these services from its facilities in Rotterdam, Netherlands, where its newly installed IN platform is located. IDT's European software group, dedicated to developing and deploying advanced integrated IN services, has developed the first set of IDT Europe's software modules supported by the IN platform.

"IDT Europe is committed to making communications simple, not stressful, and to providing its customers with the most advanced value-added services available," remarked Yoav Krill, Managing Director for Europe. "IDT's IN products and services provide an integrated approach to delivering a simple, intelligent communications solution for our European clientele."

IDT Europe will expand its Intelligent Network offerings in early 2001. Additional IN services include receiving, routing, storing and managing voice and fax messaging services over the Internet, along with "one-number access" - for voice mail, calling cards, fax mail, Internet access, call screening, messaging, voice-activated services and conferencing. These enhanced services will be supported by IDT's fiber-optic network infrastructure in Europe and the United States.

IDT Europe, launched in August 1998, has been on a rapid growth track. It now has offices in nine European countries and has announced plans to open additional offices in Milan and Stockholm later this year. It also operates a network of data center operations in major European business centers. IDT Europe recently announced it had logged a record 4.5 million minutes in voice traffic on May 14th, 2000. The European unit is now averaging about 4 million minutes in daily call volume, more than doubling its average of January 2000.

"IDT Europe has positioned itself as leading competitor to the established telcos on the European continent," said Jim Courter, President of IDT. "IDT will continue to deliver the most useful products and services to its clientele as the Company continues to expand in the European marketplace."

IDT is a leading facilities-based 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 telecommunications backbone and network infrastructure IDT provides its customers with integrated and competitively priced international and domestic long distance telephony, prepaid calling cards, Internet access and Digital Subscriber Line (DSL) service. The Company's Ventures business is developing several innovative telecom and Internet related businesses.

For Investors inquiries or to be taken off or added to the fax list, please contact:
Mary Jennings
Investor Relations
(201) 928-2975