NEWARK, N.J. - July 26th, 2000 - IDT Corporation (NASDAQ: IDTC) announced today that Macy's East, a division of Federated Department Stores, Inc. (NYSE: FD), will be featuring FREEWAY, IDT's new Calling Party Pays (CPP) pagers, in its seasonal "Bed-in-a-Bag" Home Sale, kicking off Saturday, July 29th, and running through Sunday, August 20th. IDT is a leading multinational telecommunications carrier, telephone company and Internet service provider.

The special offer will entitle Macy's customers to a free FREEWAY pager, with a $50 retail value, when they make a qualified Bed-in-a-Bag bedding purchase, which includes a comforter, bed skirt, flat and fitted sheets, a sham and pillow cases. The promotion will be featured in Macy's stores in the retailer's eastern division, which operates 87 stores in 15 eastern states.

"We are very pleased that Macy's has selected IDT's FREEWAY pager for its Bed-in-a-Bag Home Sale," said Howard Jonas, IDT's Chairman and CEO. "This promotion allows us to team up with a respected and well-established retailer to promote FREEWAY, a product that is reinventing the paging industry. Not only is the pager itself free, but the customer never has to pay a dime for the service. If that's not a great deal, I don't know what is!"

IDT's FREEWAY pager offers lifetime airtime by utilizing the Company's proprietary Calling Party Pays (CPP) technology, an unconventional billing platform that charges the calling party for the price of the page, versus the receiving party. This platform eliminates the need for credit checks, monthly fees and cumbersome service contracts typically associated with other paging services.

The Bed-in-a-Bag promotion will be advertised in Macy's in-store circulars starting on the July 29th kick-off date, and through a direct mail campaign. In all, 14 million flyers announcing the Bed-in-a-Bag promotion featuring IDT's FREEWAY pager will be distributed to Macy's customers.

Macy's customers eligible for the FREEWAY pager will receive a redemption coupon at the point of sale. The customer then mails the coupon back to Macy's and Macy's will send the pager directly to the address the customer provides.

IDT's Wireless Division announced the official launch of its FREEWAY pager on June 28th of this year. FREEWAY offers both numeric and text pagers and is sold in major retail chains including Best Buy, New York-based Nationwide Electronics and northern California-based Fry's Electronics, as well as through the same extensive distribution network that sells IDT's prepaid calling card products.

"The strong interest we are seeing among distributors, retailers and customers alike for IDT's FREEWAY pager just weeks after its consumer launch is evidence that IDT has a winning product," said Jim Courter, President of IDT. "IDT customers can expect to see more innovative products and services from the Company's Wireless Division in the near future."

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, 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.

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IDT Investor Relations
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