IDT Europe - Corporate - Press Releases

Newark, N.J., October 14, 2004 - IDT Telecom today announced that it has been chosen by TRANZACT as the exclusive phone service provider for "Sears Connect" phone cards. "Sears Connect" cards are the Point of Sale Activated phone cards, available at more than 1,800 Sears Full Line, hardware, outlet and dealer stores. Customers can use the cards to make both domestic and international calls. IDT Telecom is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment and technology company. TRANZACT is a marketing and technology solutions company.

"IDT is a brand consumers can trust," said Jim Courter, IDT's CEO. "This agreement between IDT Telecom and TRANZACT provides Sears customers with calling cards that are consistent with the quality and reliability that has become Sears¿ trademark."

Sears launched the phone cards nationally in August 2004. The cards will be available in four denominations ranging from $4.99 to $29.99 and will target domestic U.S., Mexican, Asian, Latin American and other international destinations. Under the terms of the agreement, TRANZACT will be responsible for merchandising and managing card sales within Sears stores. IDT Telecom is the technology partner and will manage the phone service.

"IDT, the worldwide leader in calling cards, was our first choice for this project," said David Graf, chief executive officer of TRANZACT. "Not only was IDT able to provide aggressive rates for both domestic and international calling but their experience in the marketplace enabled them to customize cards to different segments of Sears' customer base."

TRANZACT is a privately owned marketing and technology services company that provides measurable sales and marketing solutions for global companies. TRANZACT provides solutions for customer acquisition services and the infrastructure technology to properly provision, fulfill and care for the customers needs throughout the sales process. TRANZACT currently maintains business partnerships with DIRECTV, Cingular Wireless, Metris Companies and Sears. Halyard Capital Fund, an affiliate of the BMO Financial Group (NYSE, TSX: BMO) is TRANZACT's largest private equity shareholder.

IDT Corporation, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom, by means of its own international telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. IDT Entertainment is the IDT subsidiary focused on developing, acquiring, producing and distributing computer-generated and traditionally animated productions and other productions for the film, broadcast and direct-to-consumer markets. IDT Capital is the IDT division principally responsible for the Company's initiatives in radio broadcasting, brochure distribution and new video technologies. Net2Phone, Inc., a subsidiary of IDT Corporation, is a leading provider of high-quality global retail Voice over IP services and offers a fully outsourced cable telephony service to cable operators allowing cable operators to provide residential phone service to their subscribers.

IDT Corporation's Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.

Important Note: In this press release, all statements that are not purely about historical facts, including, but not limited to, those include the words "believe," "anticipate," "expect," "plan," "intend," "estimate,""target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent IDT's current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those which are included in IDT's most recent report on SEC Form 10-K (under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K and other filings IDT may make with the SEC.