New rate for U.S. customers to drop to 4.9 cents/minute all day

Hackensack, NJ- December 22, 1998 - IDT's (NASDAQ: IDTC) Net2Phone today announced that it will be cutting the rates on its PC-to-phone service for U.S. callers. Effective January 1, 1999, all new U.S. customers will pay only 4.9 cents per minute, up to 75% in savings, on phone calls from their multimedia PCs to any telephone in the U.S. Previously, rates within the U.S. were 10-15 cents per minute for domestic users.

"Over one million international customers have been benefiting from our
technology and capabilities of Net2Phone. We want our U.S. audience to share in what will be the next wave of domestic communications," said David Greenblatt, Chief Operating Officer of Net2Phone. "Not only will users save up to 75% off their domestic phone bill, but our international rates are
also incredibly low, with rates to most of Europe at 10 cents per minute."

Net2Phone is IDT's pioneer Internet telephony product, enabling computer
users around the world to place telephone calls over the Internet to any
telephone around the world at significantly reduced rates. Companies such as IBM Global Services (NYSE: IBM), Yahoo! (NASDAQ: YHOO), Excite (NASDAQ: XCIT), and Creative Labs (NASDAQ: CREAF) either bundle or resell Net2Phone PC services to their customer base. Users can download Net2Phone free at www.net2phone.com.

 

IDT is a leading emerging multinational carrier that combines its position
as an international telecommunications operator, its experience as an
Internet service provider and its leading position in Internet telephony to
provide a broad range of telecommunications services to its wholesale and
retail customers worldwide. The company provides its customers with
integrated and competitively priced international and domestic long
distance, pre-paid calling cards, Internet access and, through its Net2Phone product offerings, Internet telephony services including Net2Phone Direct, Net2Fax, and Click2Talk. For more information about IDT's Internet telephony services, please visit www.net2phone.com.