The world's 7th largest corporation leads a consortium of partners to offer discounted international phone service over the Internet in Japan through IDT

HACKENSACK, N.J. -- September 2, 1997-- IDT Corporation (NASDAQ:IDTC) today announced an agreement with Marubeni Corporation, which leads a consortium of partners to provide international phone service over the Internet through IDT's Net2Phone division. The agreement with Marubeni, which was recently named the seventh largest global corporation by Fortune Magazine, involves a number of large strategic players in the telecommunications and software industries whose participation will be announced shortly. IDT's Net2Phone will be providing the service and infrastructure while Marubeni will be marketing and distributing the Company's Internet telephony services.

"Internet telephony is now a legitimate communications vehicle, and we are proud to partner with IDT's Net2Phone to bring telco-quality Internet telephony to Japan," said Kanji Moriwaki, Assistant General Manager of Marubeni's multimedia business department. "IDT is already a leader in low-cost telecommunications, and Net2Phone is the recognized pioneer and expert in providing low-cost Internet telecommunications. We look forward to a long-lasting relationship."

"IDT is proud to have been chosen by Marubeni as a partner in Internet telephony," said Jim Courter, President of IDT. "We are very excited about the opportunity to provide the most advanced telecommunications applications in Internet telephony to the Japanese market."

"Our extensive telecommunications infrastructure and vast expertise in Internet telephony is paramount to our success in the industry, and this agreement with Marubeni further demonstrates our ability to deploy our technology in conjunction with established corporations," said Mordy Rothberg, Net2Phone's International Sales Director. "Net2Phone allows for a completely non-restricted environment, enabling calls to terminate to any telephone in every country. Net2Phone works hand-in-hand with IDT's telecom and Internet divisions to provide the highest-quality and most comprehensive Internet telephony service available."

IDT Corporation is a diversified telecommunications company with seven years of innovation within the international telecommunications arena. The Company provides international long distance services to individuals and businesses in over 180 countries and directly to telecommunications carriers in the US and overseas. The Company currently has over 150,000 US retail customers using an array of services including international long distance and Internet services, and prepaid calling cards. The Company is also a leader in Internet Telephony, with its Net2Phone product - the first commercial telephone service to bridge live calls between the Internet and telephones.

Marubeni Corporation is a major conglomerate headquartered in Japan with worldwide holdings in telecom, power systems, electronics, transportation, energy, chemicals, construction, metals, and textiles, with 1997 revenues in excess of $112 billion. In the field of telecom, Marubeni establishes companies to provide multimedia services via cable television. Marubeni also has a strong relationship with British Telecom as they have merged their Group Network Information Service Co. with BT Japan.

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.