NEWARK, N.J. - May 24, 2000 - IDT Corporation (NASDAQ: IDTC) today announced its partnership with Dallas-based Energy Transfer Group Communications, Inc. to bring Internet access and other Web-based interactive services and content to millions of Americans living in small towns and rural areas across the country.

Through their alliance, the Companies will market and provide local dial-up Internet access to customers living in under-served areas through distribution agreements with rural electric cooperatives across the United States.

"It should be the right of every American to have access to the World Wide Web," said Howard Jonas, IDT's Chairman and CEO. "Our partnership with ETG Communications provides us with an exciting opportunity to lead the drive to bring the Information Age to the millions of Americans without local access to the Internet."

Research by ETG Communications shows that most Americans living in rural areas do not have local dial-up access to the Internet. As a result, they must incur costly long distance charges, in addition to monthly fees, in order to obtain a connection to the Web. A July 1999 study by the U.S. Commerce Department found that Americans living in rural areas are significantly less likely to have Internet access than those living in urban or central city areas, regardless of their income level.

There are 880 electric cooperatives in the United States serving 31 million customers. By contracting with individual coops, IDT and ETG Communications would have access to a tremendous distribution network, representing a huge pool of potential customers.

In each cooperative's service area the Companies enter, ETG Communications will install the points of presence (POPs) needed to provide local dial-up access to customers within that area. IDT will provide 24/7 technical support, e-mail services and unlimited local Internet access across its technologically-advanced Internet backbone, as well as other enhanced Web-based services.

The service will initially be rolled out in south central Texas, through contracts with electric cooperatives accessing more than 3 million potential customers.

"This is an untapped area of the market that the other big players, in their focus on urban and metropolitan areas, have overlooked," said Jim Courter, President of IDT. "This initiative is in keeping with IDT's mission of bringing advanced communications and services to the pockets of the population that are not being served."

"We are confident that IDT's technical expertise and state-of-the-art Internet infrastructure, combined with ETG's marketing power and strong relationships with America's rural cooperatives, will result in a superior product that will be well received by its target market," said Cliff Harris, President of Energy Transfer Group Communications. "Through our partnership, we will work to bring fast, reliable and affordable Internet access and value-added services to millions of under-served American households.

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 telecommunications backbone and network infrastructure IDT provides its customers with integrated and competitively priced international and domestic long distance, prepaid calling cards, Internet access and Digital Subscriber Line (DSL) service. The Company's Ventures business is developing several innovative telecom and Internet related businesses.

Energy Transfer Group, LLC (ETG) was founded in 1995 to take advantage of the service opportunities created by the deregulating electric utility industry. Through its power marketing efforts ETG has developed strong relationships with many of the rural electric cooperatives across the United States. ETG formed ETG Communications, Inc., an Internet Service Provider, in 1999 to assist its rural electric cooperatives in providing reliable, low cost Internet service to a loyal base of residential and commercial customers in rural markets nationwide.

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