MINNEAPOLIS, MN, HACKENSACK, NJ, October 8, 1997 ñ Providing netizens with a cost-effective way to speak with others around the world with the simple click of a mouse, CompuWorks, a subsidiary of GT Interactive Software Corp. (NASDAQ: GTIS), joins with IDT Corporation (NASDAQ: IDTC) to publish IDTís Net2Phone, an innovative software program. Net2Phone allows users to place global phone calls from their computers at reduced rates, including the first $20 worth of usage free upon initial purchase.

"Net2Phone is the latest application to illustrate how technology can be utilized to enhance the way people communicate on a global basis," says Paul Rinde, Senior Vice President of Acquisition and Development for GT Interactiveís Value Price division. "We are excited to bring this product to consumers and are confident that it will add a new dimension to their home or office PC."

Jim Courter, President of IDT Corporation states, "We are pleased to be working with GT Interactive to provide Net2Phone in stores nationwide in time for the holiday season. We see a tremendous opportunity to capitalize on consumersí interest in saving money on phone calls, and encourage them to take full advantage of our low domestic and international rates."

Upon installation, consumers can place U.S. toll-free (800) and (888) calls for free from anywhere in the world, enabling U.S. businesses to automatically expand their customer base without incurring additional costs. In addition, Net2Phone allows any phone in the world to be reached via a PC. No longer are users limited to PC-to-PC technology, which requires both parties to have access to multimedia equipped computers running identical software. Furthermore, it is no longer necessary for both parties to be online simultaneously, and only the caller needs to utilize a PC with any Internet connection.

Having already routed more than five million minutes of Internet telephony calls, averaging close to seven minutes per international call, IDTís suite of Internet telephony services has become a proven communications option for individuals and businesses worldwide. Because the signal is carried over the Internet until it reaches IDTís U.S.-based phone switches, rates are not dependent upon the country of origin. As a result, users can pay as little as 10 cents a minute for calls to the United States from anywhere in the world. Net2Phone will be available this in November at retail outlets nationwide.

IDT Corporation is a diversified telecommunications company with seven years of innovation within the international telecommunications arena offering a variety of wholesale and retail services. The Company routes and resells international long distance services to individuals and businesses in over 225 countries and to telecommunications carriers in the U.S. and overseas. The Company currently has over 400,000 retail customers using an array of services, including international long distance, Internet and Internet telephony services. The Company provides PC-to-phone service throughout the world, and currently offers phone-to-phone Internet telephony services in the U.S. The Company plans to roll out its phone-to-phone services internationally within the next few months. Users of both services can call any telephone around the world via the Internet at rates up to 95% less than local phone calls.

CompuWorks is a subsidiary of GT Interactive Software Corp. which publishes a wide variety of home and office productivity software. Headquartered in NY, GT Interactive Software Corp., the worldís second largest entertainment software publisher, is a global publisher of entertainment and edutainment software under the GT Interactive and Cavedog Entertainment brands for personal computers as well as video game systems from Sony, Nintendo and Sega. MacSoft is the company's industry-leading Macintosh software brand. GT Interactive is also a leader in value-priced software under the WizardWorks and Slash brands. Located on the World Wide Web at http://www.gtinteractive.com, GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS.

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.