NEWARK, N.J.- June 14, 2000 - IDT Corporation (NASDAQ: IDTC) today reported revenues of $256.1 million for the third quarter of its fiscal year 2000, the three months ended April 30, 2000. 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. Revenues increased 40% over the same period last year, and were approximately 5.7% lower than those of the prior quarter. Net income for the quarter was $129.6 million or $3.41 per diluted share. Net income includes $134.1 million or $3.53 per share (net of taxes) in non-operating investment income, consisting of gains relating to the conversion of the Company's interest in two joint ventures with Terra Networks (NASDAQ: TRRA; Madrid Exchange: TRR) in exchange for additional TRR ordinary shares. Excluding the investment gains, the Company recorded a net loss for the third quarter of $4.5 million or $0.12 per share. This compares with net income (excluding non-recurring items) of $1.5 million ($0.04 per share) in Q2 2000 and $2.7 million ($0.07 per share) a year ago.

During the quarter, the Company announced three significant transactions, demonstrating IDT's continued ability to maximize the value of its assets and business ventures, in order to enhance shareholder value. These transactions included the agreement to sell 14.9 million NTOP shares to AT&T for $75 a share, (which also included various operating arrangements), the purchase by Liberty Media Group of a 9.9% stake in IDT, and the sale of the Company's equity in two joint ventures with Terra Networks in exchange for additional Terra shares. A more detailed description of these three transactions follows.

"This was in many respects a landmark quarter for the Company," said Howard Jonas, IDT's Chairman and CEO. "Beyond the significant short-term benefits that the AT&T and Liberty Media transactions will bring to our shareholders, the opportunity to partner with these leading telecommunications and media companies will allow us to both grow our core business and develop exciting, new venture businesses over the long term."

"Upon closing these transactions, we expect to have cash and investments valued at approximately $1.9 billion, or nearly $50.00 per IDTC share, on a pro forma, pre-tax basis. At a time when some of our competitors are experiencing financial difficulties, we will be able to proudly point to our outstanding financial condition, featuring over $1 billion in cash and virtually no long-term debt."

"Armed with the financial strength necessary to carry out our plans, we are willing to continue making large investments into new ventures. We have always believed that it is often more cost-effective to build these businesses than to acquire them. In this way, we will continue to be guided by the entrepreneurial vision upon which this company was founded and has continued to grow."

"In addition, despite the fact that our stock is up about 55% for the year to date, we feel that it remains significantly undervalued, and remains a good investment for the Company. As such, we have bought back well over one million of our shares during the last month, having recently received the authorization of our Board of Directors to repurchase up to five million of our common shares."

AT&T TRANSACTION UPDATE

During the quarter, a consortium led by AT&T announced that it planned to acquire a 39% voting stake in Net2Phone, by purchasing 14.9 million of IDT's NTOP shares, as well as an additional four million newly-issued NTOP shares, for $75 per share.

Recently, the Company announced that the waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act have expired, with respect to these transactions. Net2Phone has called a special meeting of its stockholders, to be held on July 6, 2000, to take the stockholder actions necessary to implement the sale to AT&T of 4 million shares of Net2Phone stock. IDT is now working towards a proposed closing of the transaction with AT&T on August 1, 2000, as originally anticipated. At the transaction's close, the Company will receive approximately $1.1 billion, or about approximately $29.00 per IDT share, on a pro forma, pre-tax basis.

In addition, AT&T and IDT agreed to enter into a mutually beneficial commercial relationship. Representatives of both companies are currently working on the implementation of several agreements, classifying IDT as a "preferred supplier," which will significantly increase IDT's minutes of use and revenues, while providing for long-term cost savings. These agreements will also include provisions for colocation arrangements and partnering for data center operations.

LIBERTY MEDIA INVESTMENT

During the quarter, the Company announced that Liberty Media Group agreed to purchase a 9.9% stake in IDT. Upon completion of the transaction on June 7, 2000, IDT issued and sold to Liberty Media 3,728,949 shares of Common Stock at a price of $34.50 a share, resulting in total cash consideration of approximately $128.6 million.

"The addition of both Liberty Media and AT&T as IDT investors represents the ultimate in third-party verification of the exciting success story that is rapidly unfolding here at IDT," said Jim Courter, Vice Chairman and President of IDT. "We hope to continue working with Liberty Media and its affiliated companies to develop new, synergistic businesses that can take advantage of our companies' complementary strengths."

TERRA NETWORK TRANSACTION

During the quarter, the Company agreed to sell its interests in two joint ventures it had formed with Terra Networks - Terra Networks Access Services and Terra Networks Interactive Services ?V for 3,750,000 to 4,000,000 TRR ordinary shares, based on the timing of delivery of the shares. Combined with approximately 1.1 million shares of Terra Networks that the Company already owned, IDT will hold approximately 5.0 million TRR shares, enhancing the liquidity of the Company's investment in Terra Networks, a leading provider of Internet access (ISP) and local-language interactive content and services to the Spanish and Portuguese-speaking world. Based on the closing price of TRR on June 13, 2000, the pro forma value of IDT??s interest in Terra Networks was approximately $215 million, or $5.75 per IDT share.

TELECOMMUNICATIONS SERVICES

IDT's core telecommunications business reported revenues of $252.5 million, up 41% from the same period last year, and 5.9% lower than last quarter. Gross margins for the Company's core telecommunications business amounted to 17.9%, virtually unchanged from 18.1% in the second quarter of 2000, and higher than the 16.9% telecom gross margin in the first quarter of 2000.

EBITDA (Earnings Before Interest, Taxes and Depreciation, and excluding minority interest) for the telecommunications business amounted to $9.0 million, versus $16.8 million in the second quarter of 2000 and $13.1 million in the same quarter last year.

WHOLESALE

IDT's wholesale carrier business reported revenues of $127.9 million, up 70% from the third quarter of fiscal 1999, and 3.4% lower than the second quarter of 2000. Overall carrier gross margins were 13.4%, versus 14.0% in the second quarter. During the quarter, the Company recorded about $6.2 million in carrier revenues related to sales to Net2Phone, up from $4.7 million in the second quarter. The gross margin on the sales to Net2Phone in both periods was 10%. The Company's average gross margin on third-party carrier sales was 13.6%, versus 14.1% in the second quarter. Despite the well-publicized, industrywide margin compression that has taken place in the wholesale telecom market, the Company's wholesale gross margins have remained steadily within the 13.6%-15.6% range over the past six quarters.

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 began to trend lower in September 1999. However, as several weaker competitors have left the marketplace, the Company has captured a larger share of the wholesale market, and minutes of use have increased in each month, beginning in March 2000.

Globally, the Company continues to capitalize on its relationships with PTTs, and currently serves 18 of the top 25 global carriers, with operating, terminating and alternate carrier agreements throughout the world. IDT continues to benefit from the geographically diverse nature of its customer base and its ability to move quickly in a dynamic marketplace. The past several quarters have witnessed a shift in the carrier division's geographic mix, both in terms of minutes and revenues, with Asia and Africa exhibiting the fastest growth. As a result, the Company's wholesale revenue per minute realizations have remained virtually unchanged over the past six quarters, even as some competitors struggle with pricing pressure.

RETAIL

IDT's retail division posted $124.6 million in revenues, up approximately 20% from the same quarter last year and 8.4% lower than the previous quarter. Retail gross margins were 22.2%, versus 22.5% in the second quarter of 2000. Prepaid calling card revenues amounted to $117.0 million, up 22% from the third quarter of Fiscal 1999, and 8.0% lower than the previous quarter. The blended prepaid calling card gross margin amounted to 21.4%, up from 20.7% in the previous quarter. The increase in prepaid margins reflected a shift in sales towards higher-margin IDT calling cards.

During the quarter, the Company continued to expand its calling card distribution beyond its traditionally strong East Coast markets. In particular, solid growth was seen in California, Florida and Illinois. Already a leading seller of minutes to Latin America, the Company recently launched its prepaid calling card distribution operation in the Dominican Republic. Further geographic expansion, over the next few quarters, will focus on Massachusetts, Texas, Puerto Rico and Nicaragua.

Domestic Long Distance

During the quarter, the Company incurred significant sales and marketing expenses related to its domestic long distance business, featuring the "1+ Direct Dial" long distance product. Domestic long distance revenues for the quarter were up 20% from the second quarter, as the Company's $0.05 per minute long distance plan continues to attract new customers.

The continued development of the domestic long distance business will allow IDT to add a significant, relatively high margin, recurring revenue base to its existing retail operations. IDT also plans to fully leverage its long distance relationships with customers providing relevant offers that span IDT's wide array of consumer-solutions, including a variety of Internet services, as well as paging, prepaid calling cards and wireless services.

IDT EUROPE

IDT's European telecommunications division, which commenced operations in the fourth quarter of Fiscal 1998, continues to account for an increasing proportion of overall telecommunications revenues. Recently, the Company announced that IDT Europe surpassed the four million daily minutes milestone, and the division currently has an annual revenue run-rate in excess of $150 million. During the third quarter, revenues from IDT's European division advanced 20% from the levels recorded during the second quarter. For the quarter, the Company's European telecommunications division reported a net operating loss of approximately $11.0 million.

In line with the experiences of other emerging European telecom carriers at similar stages of development, the Company incurred significant overhead costs, while wholesale gross margins were hampered by capacity constraints. In particular, the Company incurred significant promotional and marketing costs related to offering its prepaid calling card products in several new markets, seeing this as the most cost-effective way to build its retail business and to capture market share. This approach has met much success in marketing to the lucrative immigrant markets in Europe, which tend to send many minutes to the relatively high-revenue markets in Asia and Africa.

Recognizing the significant opportunities offered by the rapidly evolving European telecommunications market, the Company intends to expand its network in Europe to further develop its operations in that region. Such expansion of the Company's operations may initially have a negative impact on the Company's overall gross margins over the next two to three quarters, and will lead to a significant increase in selling, general and administrative expenses. As such we anticipate that the European division will continue to experience losses over the next few quarters.

"During the quarter, we made great strides towards developing our telecom business in Europe," said Hal Brecher, IDT's Chief Operating Officer. "Based on the realized market values of other emerging European telecom companies with revenues at levels similar to ours, we believe that we have created a highly valuable asset, which is not yet part of the Company's overall market value."

INTERNET

IDT's Internet division recorded an operating loss for the quarter of $4.0 million, versus a loss of $3.6 million in the prior quarter and a loss of $2.1 million in the second quarter of Fiscal 1999. Internet revenues increased 9.4% from the prior quarter, to $3.4 million, and were 18% lower than during the same quarter last year.

IDT VENTURES

The IDT Ventures division, comprised of several new telecom and Internet related ventures currently being developed by IDT, recorded an operating loss of $8.9 million in the third quarter, related to ongoing start-up and development costs, compared to a $3.0 million operating loss in the second quarter of Fiscal 2000. IDT Ventures did not record material revenues for either period.

The Company plans to take advantage of its strong financial position to make the expenditures necessary to develop several promising new businesses. In this way, the Company hopes to remain on the cutting-edge of communications technology, and ultimately, to create significant incremental value for its shareholders. A more detailed description of the Company's major new business initiatives follows:

IDT Wireless

Recently, IDT announced the formation of its Wireless division, which 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, the Company currently has made great strides in making its pagers widely available to the public.

In addition, the Company has developed 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. Outgoing calls can be paid for on a prepaid basis, for which the Company plans to offer one of the most competitive rates in the industry. Given the relative popularity of cellular phones, the Company expects this product to be an even larger contributor to earnings than will be the caller-paid paging product.

The Wireless division incurred significant development expenses during the quarter, and these expenditures are expected to continue for at least the next several quarters. However, the Company anticipates that the Wireless division will ultimately be a major segment of IDT's overall business, mirroring the experience of other traditional telecom companies that have expanded into the wireless arena. The development expenses incurred by the Wireless division are seen as affording the Company relatively low cost entry into the lucrative wireless industry.

FreeAtLast.com

On May 2, 2000, the Company launched FreeAtLast, which provides totally free, unlimited dial-up Internet access, E-mail, faxing and PC-to-PC voice-over-Internet calling. During the third quarter, the Company incurred development expenses in anticipation of the launch of FreeAtLast. By using a proprietary, "intelligent" content delivery system provided by Predictive Networks, in which the Company owns an equity stake, FreeAtLast is able to deliver precision targeted advertising to its users based on their own unique demographics and content affinities, while maintaining users' anonymity. As a result, FreeAtLast has achieved click-through rates well above the industry average, allowing it to sell its advertising space at a premium.

GENIE

Based on the Company's belief that a significant opportunity exists to provide streaming technology and content over the Internet, the Company has revitalized and expanded its GENIE division, which plans to deliver full-screen video over the Internet to subscribers throughout the world. GENIE will deliver to its subscribers live sports and musical events, movies and television programming. IDT is currently developing technology that will permit GENIE to deliver its content to specific customers or geographic areas, as well as encryption technology that will ensure that content will not be subject to unlicensed use or duplication.

It is expected that GENIE will derive revenue from subscription or pay-per-view fees, advertising and Web hosting revenue from content providers. During the quarter, the Company incurred expenses related to the formation of a top-level technology team to develop the GENIE concept, and significant additional expenditures are expected in the next several quarters.

CAPITAL MARKETS

Last month, the Company announced that its Board of Directors had authorized the repurchase of up to five million shares of the Company's common stock. The Company has repurchased 1,431,773 shares under the buyback program.

PRESENTATION OF FINANCIAL RESULTS

The above discussion of IDT's results focuses on the Company's Telecom, Internet and IDT Ventures divisions, and omits those of Net2Phone. However, as IDT owned a majority voting interest in Net2Phone throughout the quarter, for GAAP accounting purposes the Company is required to include all of Net2Phone's financial results, net of intercompany transactions, within IDT's consolidated financial statements. Presented at the end of this release are two income statements: one that can be used to analyze the performance of IDT's core businesses on a stand-alone basis, and a separate consolidated income statement that includes Net2Phone, and the accompanying elimination of intercompany transactions, as reported in IDT's public filings.

CONFERENCE CALL INFORMATION

In connection with this release of quarterly results, the Company will be hosting a conference call today for analysts and investors, at 5:00 PM EDT. To access the call from the U.S., dial 1-800-446-2782. For international callers, the dial-in number is 1-847-413-3235. A replay of the teleconference will be available for one week after the conference call at 1-888-843-8996, passcode #2441604 for domestic callers, or 1-830-652-3004 for international callers.

Alternatively, interested participants may access a webcast of the conference call by visiting the IDT Corp. website, at http://www.idt.net. A direct link to the call will be found on the website. Listening to the webcast of the call will require Real Audio software. Please allow at least 15 minutes to download the necessary audio software prior to the call. An archived copy of the call will we available at the IDT website on the Investor Relations tab.

Investors are encouraged to visit the recently expanded Investor Relations section of the Company's web site (http://www.idt.net/ir/index.htm) which contains company information, frequently asked questions, downloadable financial tables and other informative content.

IDT CORPORATION

IDT is a leading facilities-based, multinational carrier that combines its position as an international telecommunications operator with it's 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 fiber optic 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 division is developing several innovative telecom and Internet related businesses.

Norman Rosenberg, CFA
VP, Finance & Capital Markets
201-530-4001

Mary Jennings
Manager, Investor Relations
201-928-2975