Leading Internet telephony company launches promotional campaign, encouraging people to make a free call to test new low-cost phone service

Even if you lose, you win.

Beginning today, anyone in the U.S. can enter a sweepstakes to win $5,000 by making a free call over Net2Phone Direct, IDT Corporation's (NASDAQ:IDTC) new low cost telecommunications service over the Internet. So even if the caller doesn't win the $5,000, those who sign up for Net2Phone Direct will still save up to 95% on phone calls worldwide.

With Net2Phone Direct, calls to anywhere in the U.S. cost as little as 8 cents per minute because they are routed over the Internet. Neither the caller nor the receiver needs a computer. To make a free Net2Phone Direct call and enter the sweepstakes, please call 1-800-CALL-IDT.

During the six-week duration of the sweepstakes, everyone who calls Net2Phone Direct to test out the service will be automatically entered into the sweepstakes without any purchase or obligation. A random drawing will be held on October 21, 1997.

``We feel so confident in the quality of Net2Phone Direct calls that we encourage all callers to place their free call, and give them a chance to win $5,000,'' said Howard Jonas, IDT's Founder and CEO. ``There is no better way to assure top quality then to treat potential customers to a free call to see it for themselves. Not only are we launching a great sweepstakes, but we are making it easier for people to save money on phone calls.''

On Monday, the Company released Net2Phone Direct, technology enabling users to place calls via the Internet using traditional telephones while still maintaining high sound quality. Net2Phone Direct calls from local numbers to anywhere in the U.S. cost 8 cents per minute, and for an additional 5 cents per minute, callers can access Net2Phone Direct via an 800-number, likening Net2Phone Direct to a pre-paid calling card. International rates are equally competitive, with rates to UK at 18 cents per minute and Tokyo at 29 cents per minute. These rates are effective 24 hours a day, 7 days a week. Unlike other Internet telephony products, Net2Phone Direct provides unrestricted calling to any telephone in the world and has True Phone Quality (TPQ).

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 400,000 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.