AT&T To Invest $75 Million in IDT Corporation.

Business Editors

NEWARK, N.J.--(BUSINESS WIRE)--Aug. 28, 2000

IDT Corporation (NASDAQ:IDTC) announced today that it will exercise its option to cause AT&T (NYSE: T) to purchase an equity stake in IDT in the amount of $75 million. Under the terms of the option, IDT will issue and sell to AT&T 2,040,817 shares of its new class of common stock, Class B Common Stock, par value $0.01 per share, carrying 1/10 of a vote per share, at a price of $36.75 per share. Upon completing the transaction, AT&T will own approximately 5% of IDT's outstanding shares.

On July 3, 2000, IDT amended its restated certificate of incorporation in order to increase the number of its authorized shares and create the new Class B Common Stock. The closing of the purchase is subject to the approval of regulatory agencies and certain other conditions.

"We are delighted to have AT&T, the world's leading communications company, make this strategic investment in IDT," said Howard S. Jonas, IDT's Chairman and Chief Executive Officer. "We believe this investment by AT&T, and the extensive commercial relationship to be established in connection with the recently completed sale of our Net2Phone shares to AT&T, will bring additional benefits to IDT's shareholders."

IDT CORPORATION

IDT is a leading facilities-based, multinational carrier that combines its position as an international telecommunications operator with its experience as an Internet service provider to provide a broad range of telecommunications services to its wholesale and retail customers worldwide.

Through its own national telecommunications backbone and fiber optic network infrastructure IDT provides its customers with integrated and competitively priced international and domestic long distance telephony, prepaid calling cards, Internet access and digital subscriber line (DSL) service. The Company's Ventures division is developing several innovative telecom and Internet related businesses. Through its IDT Investments subsidiary, IDT has equity interests in several telecom and Internet-related companies.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words "believes," "anticipates," "expects," and similar words and phrases. Such forward-looking statements include, among other things, plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. Such forward-looking statements also include our expectations concerning factors affecting the markets for our products, such as changes in the U.S. and the international regulatory environment and the demand for long-distance telecommunications, Internet access and Internet telephony services. Actual results could differ from those projected in any forward-looking statements. The forward-looking statements are made as of the date of this press release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth from time to time in our reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our Quarterly Report on Form 10Q for the period ended April 30, 2000.