IDT Unveils Net2Phone Direct at Comdex
Leading telecommunications and Internet provider deploys technology to provide low-cost phone-to-phone calling over the Internet

Hackensack, NJ -- November 21, 1996 -- Hackensack, NJ, IDT Corporation (NASDAQ: IDTC) successfully unveiled its new Net2Phone Direct service this week at COMDEX in Las Vegas. Net2Phone Direct will enable users to place calls via the Internet using traditional telephones while still maintaining high sound quality and reducing the cost of international calls to approximately the cost of a local call. Beta release is scheduled for January 1, 1997.

"IDT has entered a new era in telecommunications," said Howard Jonas, CEO and Founder of IDT. "Net2Phone and Net2Phone Direct are more than just hobbyistÌs tools. Net2Phone Direct is the bridge from the existing world of telephony to the new world of Internet telephony, where you donÌt have to be technologically adept to save money on international calls."

Net2Phone DirectÌs network switching infrastructure is based on IDTÌs proprietary Net2Phone model, where users can place calls from their PCs to any telephone in the world. The pricing model is similar to Net2Phone, where international calls can be placed for as little as 10 cents a minute. Unlike other Internet telephony products, Net2Phone DirectÌs sound quality is equivalent to dialing on a LAN, and is full-duplex.

Users of the phone-to-phone service call a local access number, which connects the call to an incoming switch server. The system then prompts the user to enter both the account number and telephone number they wish to reach. This server converts the call from the telephoneÌs circuit switch network to the InternetÌs packet switched network. The call is carried over the Internet to a terminating switch server located within, or in close proximity to, the country of destination. That server, in turn, switches the call onto the local telephone network, and completes the call. Because the call only travels a short distance on the circuit switched network, the total cost of the call is minimal.

Previously, Internet telephony systems required callers to have multimedia computers and Internet connections, which limited the use of Internet phone products to avid surfers. Now, the general public can reap the benefits of Internet telephony without having to purchase costly equipment.

Entrepreneurs worldwide have been working closely with IDT to set up outbound servers in various countries, and negotiations are underway with numerous third parties to offer the service overseas.

"Once again, IDT is changing the face of the telecommunications industry," said Fara Hain, co-Director of IDTÌs Net2Phone division. "We are now pioneering the next level of telecommunications. The only challenge is constantly keeping one step ahead of technology."

IDT Corporation is a leading full service telecommunications company offering integrated and bundled telephone, Internet access, and Internet telephony services. The Company provides global long distance telephone services in 120 countries for individuals, businesses, and other long distance carriers. IDT is also one of the country's largest Internet service companies, providing dial-up access to individuals and dedicated access to corporate customers nationwide. The Company recently announced plans to release Net2Phone Direct, which will enable users to place calls via the Internet using traditional telephones while still maintaining high sound quality. Net2Phone, Net2Phone Direct, and IDT are trademarks of IDT Corporation.