HACKENSACK, NJ – August 29, 1997 -- IDT Corporation (NASDAQ: IDTC) today announced its Global Partnership Network opportunity for Net2Phone, the first PC-to-phone technology. Net2Phone’s initial Global Partnership Network trial program has already generated revenues in excess of $2 million, with a current commitment value of over $5 million. The Company has previously announced similar exclusive partnerships with Daewoo Corporation of Korea and Netvision of Israel, and continues to lead the industry with full-telco quality Internet Telephony solutions.

"As we rapidly expand our Global Partnership Network, Net2Phone will continue to offer the highest quality Internet communications system available today," said Net2Phone Director Yonah Lloyd. "Net2Phone currently has customers in every country in the world with Internet capability, and these customers are able to use their computer to call to any standard telephone in the world for rates far below what they have been paying to their local telephone companies."

Having already routed over 5 million minutes of PC-to-phone calls, averaging close to 7 minutes per international call since offering True Phone Quality in May, 1997, Net2Phone is a proven communications option for individuals and businesses worldwide. Users who download the free software prepay for calls online, immediately enter the telephone number they wish to call, and are instantly connected through the Internet to their desired destination without the need to use PIN numbers or choose a particular Internet Telephony Service Provider (ITSP).

"Net2Phone will provide Latin American companies with the possibility to compete in the international markets by drastically reducing their telecommunication costs," said Marcus Dantus, CEO of Latelco, Mexico City, Mexico.

Net2Phone has currently signed Internet Telephony reseller agreements in Italy, Australia, Korea, Israel, Singapore, Malaysia, India, Indonesia, Mexico, Russia, Turkey, Ghana, Lebanon, Kuwait, and French Polynesia, and is currently negotiating with representatives in an additional 30 countries to provide Net2Phone exclusively in their respective countries. Detailed information regarding the expansion of this program may be found at www.net2phone.com.

"Net2Phone has been a paradigm shift for most of the Turkish Internet users," said Ziya Genceren, CEO of Sencer Marketing, based in Istanbul. "Not only has it reduced their international phone bills but it has actually replaced the telephone as a basic form of communications. Families have gotten closer to their children studying abroad -- they would have never imagined spending over an hour on an overseas phone call."

"By reselling Net2Phone, we have taken Singapore and Malaysia by storm," said Hyder Ali of Aviva Corporation, located in Kuala Lumpur. "Our users are impressed with the quality and tremendous cost savings of Net2Phone. Even local telcos are talking about us."

Net2Phone software with True Phone Quality (TPQ) is free and downloadable from the Net2Phone web site at www.net2phone.com. Users 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 internationally without incurring additional costs. Users can also call any telephone around the world at rates up to 95% less than local phone companies.

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.

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.