IDT Europe - Corporate - Press Releases

Newark, NJ - September 27, 2000 - Imagine an entirely new distribution channel which brings archived and live content -- including classic and contemporary television shows, feature-length movies, live performances from musicals to sporting events, animations and documentaries -- to your viewing screen when you want it. This leading edge technology is now a reality. IDT Corporation (NASDAQ: IDTC) today announced the creation of TV.TV, the Company's new business unit that plans to deliver high-quality entertainment and broadband television to users across the globe. TV.TV is the broadband entertainment delivery system created by IDT (also known as project "Genie" while in development). IDT is a leading facilities-based multinational telecommunications company.

Built from the ground up to deliver VHS quality entertainment and information exclusively to the new broadband mass market, TV.TV can be accessed through cable-modems, DSL, digital cable set top boxes or even wireless services. TV.TV's neutral platform does not limit consumers to the use of any single technology to view the programs they want.

TV.TV will provide free television on demand supported by targeted advertising, pay-per-view events and subscription services. TV.TV is due to be operational in multiple pilot markets by the end of the year. The service will be launched in a market-by-market rollout, beginning with New York City, San Jose, CA and Billings, MT, to anyone with a high-speed, broadband connection to the Internet.

"Broadband television and entertainment is the wave of the future," says Howard Jonas, IDT's chairman and CEO. "Just as cable television changed the face of broadcasting, IDT is revolutionizing both the entire television and entertainment industries with TV.TV. We believe TV.TV will be the entertainment network of the future and the leading destination on the web for consumers searching for a wide variety of rich entertainment and information programming."

The TV.TV network will give viewers an unparalleled opportunity to customize their viewing experience and programming choices. TV.TV will open a whole new window of opportunity for viewers, while creating a new outlet for the broadcast, cable and home video industries to enhance revenue, broaden their viewing audience and increase the distribution potential for both live and pre-recorded programming.

"IDT is working aggressively to forge distribution and re-broadcast agreements with a wide array of content and programming providers," says Jim Courter, president of IDT. "With the top-level technology team TV.TV has put in place and the innovative solutions the Company brings to the table, TV.TV is positioning itself to be a leading player in the digital revolution that is transforming the media and entertainment industries."

The TV.TV programming network will be supported by IDT's national Tier 1 Internet backbone and Web hosting facilities, and leverage the Company's years of experience and expertise as an ISP and leading facilities-based telecommunications carrier.

TV.TV is currently developing proprietary technology for a range of advanced security solutions, including encryption, digital "fingerprinting" and "watermarking" that protect content against piracy and unlicensed use or duplication. By converting film and other programming content into an encrypted, digital format that can be streamed on the Web, the TV.TV platform offers a secure, turn-key solution for moving entertainment properties onto the Internet where they can be accessed by a diverse and growing online audience.

"IDT's solid financial position and commitment to innovation will be key to TV.TV's success in what could prove to be a highly lucrative new industry," says Yehuda Wurtzel, TV.TV's CEO. "In the near future consumers can expect to see even more cutting edge applications and services from IDT and TV.TV."

TV.TV, a business unit of IDT, delivers high-quality online video content and broadband and television and entertainment services to the new broadband mass market. Through various strategic alliances, TV.TV will be accessible through cable-modems, DSL, digital cable set top boxes and wireless services. TV.TV enables the viewer to watch better than video quality programs through free television on demand, pay-per-view events and subscription services.

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 offer a broad range of telecommunications services to its wholesale and retail consumers worldwide. Through its own telecommunications backbone and network infrastructure, IDT provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, Internet access and Digital Subscriber Line (DSL) service. The Company's Ventures division is developing several innovative telecom and Internet related businesses.

Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our 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. The forward-looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Quarterly Report on Form 10Q for the period ended April 30, 2000; and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward-looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward-looking statements.