IDT Europe - Corporate - Press Releases

NEWARK, N.J. - December 12, 2000 - IDT Corporation (NASDAQ: IDTC) today announced that the Company's retail calling card division reached a major milestone delivering over 300 million minutes of voice traffic during the month of November, 2000. IDT is an emerging multinational telecommunications carrier, telephone company and Internet service provider.

"The growth of our retail calling card operations is unbelievable," said Howard Jonas, IDT's Chairman and CEO. "It's like a run-away freight train that nobody can stop. We recently smashed through the 15 million voice minute milestone in a single day."

IDT announced in its Fourth Quarter earnings statement released on October 30th that it anticipates revenues from prepaid calling cards to be approximately 25% higher in the first quarter of Fiscal 2001 than in the fourth quarter of Fiscal 2000. Helping fuel this growth is IDT's success in marketing to various ethnic communities in the United States. IDT's partner in its retail calling card operations, Union Telecard Alliance, carries over 125 different brands of calling card products which it sells to customers through its extensive distribution network of over 100,000 retail outlets across the country.

"We believe IDT is now the dominant provider of prepaid calling cards to the country's various ethnic and demographic groups," said Jim Courter, President of IDT. "We remain committed to serving this rapidly growing segment of the international telecommunications industry, even as many of our competitors scale back their operations or leave the industry altogether."

In addition to its successful partnership with Union Telecard, IDT markets other calling card products to approximately 1.3 million customers. These include users of IDT's private label calling cards, affinity cards, and the nearly 400,000 enrollees in GlobalCall, the Company's flagship rechargeable phone card offering highly competitive domestic and international rates to individuals and businesses. GlobalCall's core customer base includes frequent international business travelers with whom IDT has developed a strong branded relationship, and who use GlobalCall on a repeat basis to place high-margin international calls.

One advantage of GlobalCall is that a customer's home telephone number serves as their account number. The card also offers value-added features including voice mail, fax mail, sequence dialing, and multiple recharge options.

In addition to frequent international business travelers, IDT is expanding its marketing efforts to other segments that are ideally positioned to take full advantage of GlobalCall's terrific rates and features. Beginning this quarter, IDT will build on its calling card leadership position by marketing directly to international college students and military personnel. Customers in both of these segments are expected to make high-margin international calls on a consistent basis, based on previous successful testing.

"GlobalCall is a terrific product that has built a loyal and solid customer base among airline business travelers who realize the benefits of its low-rates, convenience and great value-added features," Howard Jonas remarked. "We anticipate an equally strong reception among the new markets segments we are now targeting."

For more information on GlobalCall or to activate your own GlobalCall account call 1-800-346-4168, or visit our Web site at www.global-call.net.

IDT is an emerging facilities-based multinational carrier that offers a broad range of telecommunications services to wholesale and retail consumers 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 - news). IDT Technology Ventures supports IDT in selecting and incubating new technology ventures.

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 4K for the period ended July 31, 2000; 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.

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