IDT's Net2Phone Lowers Rates to Hurricane-Stricken Areas
Rates dropped on PC-to-phone calls from anywhere in the world

HACKENSACK, NJ - September 28, 1998 - In response to the devastating effects of Hurricane Georges, IDT today announced that it is lowering its Net2Phone rates on its PC-to-phone service to Puerto Rico, Dominican Republic, Florida, Mississippi, Alabama and Louisiana so that relatives and friends can keep in touch with those affected by the hurricane.

Calls to Puerto Rico, Florida, Mississippi, and Louisiana from anywhere in
the world will drop to 4 cents per minute, down from 10 cents per minute,
and calls to the Dominican Republic from anywhere in the world will drop to
15 cents per minute, down from 25 cents per minute. The rates will be in
effect for one month beginning today.

"IDT/Net2Phone is pleased to help the friends and family of those in
distress," said David Greenblatt, Net2Phone's Chief Operating Officer.

Net2Phone enables Internet users to place calls to any telephone in the
world via the Internet, transforming multimedia computers into full service
communications tools. Recipients of the call need not be online as calls are
routed directly to traditional telephones. Because calls are placed through
the Internet, phone rates are not based on the country of origin. Users can
download the free software from www.net2phone.com and start placing calls
within minutes.

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.