Net2Fax offers real-time high-quality faxing over the Internet without the need for additional equipment for 5 cents per minute

Hackensack, NJ. - March 12, 1998 - IDT Corporation (NASDAQ: IDTC) today released the first service that routes faxes over the Internet in real time without the need for a computer. The service, Net2Fax, offers drastically reduced rates on both domestic and international faxing. IDT also offers PC-to-phone and phone-to-phone telephony services. Users will not need to purchase hardware or software or even own a computer in order to utilize this low-cost service. All you need is a fax machine. Rates are the same as Net2Phone Direct, IDT's Internet-based long distance service, where domestic calls are as little as 5 cents a minute. International rates are also incredibly low, beginning at 9 cents per minute on calls to London.

While most other systems use delayed, store-and-forward transmission, Net2Fax transmits in real-time, and users receive an immediate confirmation that the fax has reached its destination. This service is currently available on calls from the U.S. and Korea to anywhere in the world. Users can sign up for service by calling 800-CALL-IDT. With more than 40% of telecom traffic being used for faxing, IDT can now offer comprehensive Internet telephony services which can be used by businesses and communications companies nationwide to send phone and fax communications anywhere in the world at drastically reduced rates. While other companies announce plans to offer such service, IDT is the first company to offer real-time instantaneous faxing over the Internet for as little as 5 cents per minute.

"With real-time routing and immediate guaranteed transmission, Net2Fax will enable consumers and businesses will benefit greatly from this service without sacrificing quality at all. This is a full performance service, providing a turn-key low-cost solution to faxing over regular networks," said IDT's President Jim Courter. "This further substantiates the claim that Internet telephony is a viable and realistic alternative to high-priced traditional telephony."

With Net2Fax, calls are routed over IDT's extensive DS3 backbone, enabling top quality and clear transmission of calls. The service works on a pre-paid basis, and users can sign up in increments of $25, which can be used for both voice and fax. The company plans to roll out the service in additional regions of the world in the coming months.

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, Internet access and, through its Net2Phone product offerings, Internet telephony services.

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.