Leading international carrier to provide telecom services in world's third largest telecom market

Hackensack, NJ, December 29, 1998 -- IDT Corporation (NASDAQ: IDTC) today announced that it has received licensing to provide switched voice service in Germany, the third largest telecom market in the world. The Company currently routes traffic through its US and UK hubs, and intends to increase international originating hubs with planned points of presence in Western Europe and the Pacific Rim.

The license, effective immediately, allows IDT to offer a full range of
telecom services to both wholesalers and retailers in Germany, including
carrier services, direct dial, and pre-paid calling cards. The Company
expects to begin operations in Germany within the next three months, which will help reduce the cost of termination and origination. The Company
intends to allocate significant capital to build switching facilities and
network infrastructure in this fast growing market.

"Thanks to the rapid deregulation of the European telecom marketplace, we
have been able to effectively capitalize on emerging markets and rapidly
begin offering an assortment of telecom services in Germany. We hope to
mirror our success in the US and UK," said IDT's President Jim Courter.

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.

 

Except for historical information, all of the expectations and assumptions
contained in the foregoing are forward-looking statements involving risks
and uncertainties. Important factors that could cause actual results to
differ materially from such forward-looking statements, include, but are
not limited to, the competitive environment for Internet telephony, changes
of rates of all related telco rates and services, legislation that may
affect the Internet Telephony industry, IDT 's ability to operate the
services described on a large scale commercial level. For additional
information regarding these and other risks associated with the Company's
business refer to the Company's reports filed with the SEC.