• IDT Telecom Achieves Operating Profit for Second Consecutive Quarter
• IDT Telecom Receives $30 Million Investment from Liberty Media
• IDT Corp. Balance Sheet Features $1 Billion in Cash & Equivalents ($13.90 per Share)
• Financial Spreadsheet for Q2 (PDF).

NEWARK, N.J. - March 14, 2002 - IDT Corporation (NYSE: IDT, IDT.B) today reported record revenues of $374 million for the second quarter of its Fiscal Year 2002, the three months ended January 31, 2002. Revenues for the second quarter were up 10.3% from the first quarter, and increased 30.1% over the revenues recorded during the second quarter of Fiscal Year 2001. As presented in this report, per share figures for all periods have been adjusted to take into account the Company?s Class B common stock dividend, which was distributed in May 2001.

The net loss for the quarter was $17.2 million, or $0.23 per share. This compares with a net loss of $158.3 million, or $2.22 per share, in the first quarter of Fiscal Year 2002, and a net loss of $117.1 million, or $1.77 per share, in last year?s second quarter.

Three items, accounting for a loss of $14.9 million after tax, deserve particular attention:

• a loss of $11.6 million due to the activities at our newly-acquired Winstar business;
• a loss of $11.4 million attributable to IDT's noncash share of losses at Net2Phone;
• a gain of $8.1 million relating to the formation of an LLC with
• AT&T Corp. and Liberty Media Corp. to purchase a controlling interest in Net2Phone, Inc.
• Excluding these items, our net loss would have been $2.3 million, or $0.03 per share.

"This quarter's numbers show solid improvement and clearly confirm that our core business has risen above the ruins of the telecom industry," said Jim Courter, Vice Chairman and CEO of IDT Corporation. "Record revenues, higher gross margins across all telecom business lines and a wholesale carrier business that has 'turned the corner' are just a few highlights of IDT's remarkable story."

LIBERTY MEDIA INVESTMENT IN IDT TELECOM

As discussed in a separate press release issued earlier today, IDT and Liberty Media announced that Liberty Media has made a strategic investment of $30 million in IDT Telecom, Inc., a subsidiary of IDT Corporation, at a "pre-money" equity valuation of $600 million. As a result of this investment, Liberty Media will own approximately 4.76% of the common equity of IDT Telecom, Inc.; IDT Corporation owns the remaining common equity of IDT Telecom, Inc.

RESULTS OF OPERATIONS

IDT recorded a loss from operations for the second quarter of Fiscal 2002 of $27.8 million, compared to an operating loss of $9.8 million in the first quarter of Fiscal 2002 (excluding impairment charges). Excluding the operations of the company's Winstar division, acquired during Q2, the operating loss was $8.6 million.

EBITDA (Earnings Before Interest, Taxes and Depreciation and Amortization, and excluding minority interests and impairment charges) in the second quarter of Fiscal 2002 amounted to a loss of $12.9 million, versus a gain of $5.5 million in the first quarter of 2002 and a loss of $33.8 million in Q2 2001. Excluding the company's Winstar division, acquired during Q2 2002, EBITDA was a $5.9 million gain.

Telecommunications

IDT's core telecommunications business reported revenues of $349.1 million for the second quarter of Fiscal 2002, representing an increase of 4.7% from the revenues recorded in the first quarter of Fiscal 2002, and up 24.3% from the same period last year. Gross margins for the Company?s core telecommunications business amounted to 21.8%, up from 20.2% in Q1 2002 and 12.1% in the prior year period. The cost of sales for the second quarter of Fiscal 2002 includes $4.5 million in expenses related to the early termination of a long-term bandwidth contract, as the company seeks to take advantage of the currently depressed bandwidth market to replace existing, above-market price bandwidth, with significantly lower-cost bandwidth. Excluding this expense, gross margins was 23.1%, representing the highest overall gross margin for the Telecom division since the first quarter of Fiscal 1999.

The continued improvement in Telecom gross margins reflects higher gross margins across all business lines, due to economies of scale and improved operating efficiency.

EBITDA in the quarter for the telecommunications business was $17.0 million, versus $16.2 million in the first quarter of 2002 and a loss of $16.3 million in Q2 2001. The EBITDA margin improved from 4.8% in Q1 to 4.9% in Q2. Excluding the bandwidth contract termination expense, EBITDA was approximately $21.5 million, with an EBITDA margin of 6.2%.

"The second quarter of Fiscal 2002 represented another significant step forward for IDT Telecom," stated Motti Lichtenstein, CEO of IDT Telecom. "Both revenues and profits increased, and we laid the groundwork for future growth over the rest of Fiscal 2002 and beyond."

RETAIL

IDT's retail division posted $274.7 million in revenues for the second quarter, up 3.5% from the previous quarter, and 54.7% more than the retail revenues recorded during the same quarter last year.

Prepaid Calling Cards

Prepaid calling card revenues amounted to $247.8 million for the second quarter, up 2.2% from the previous quarter, and 52.1% more than the prepaid calling card revenues of the second quarter of Fiscal 2001. The strong year-to-year growth in prepaid calling card revenues was fueled by the introduction of several new calling cards in the U.S., as well as the continued strong growth on European calling card operations. IDT Europe?s calling card operations witnessed growth in its core United Kingdom market, as well as in relatively new areas of penetration, such as Spain, Germany and the Netherlands.

Gross margins for prepaid calling cards were 21.6%, up from 20.7% in the first quarter of Fiscal 2002, and 13.7% in Fiscal 2001?s second quarter. Margins continued to benefit from improved control of costs and improved scale.

Looking ahead to the remainder of Fiscal 2002, we expect to introduce several new cards, featuring attractive rates to popular calling destinations, in an attempt to capture market share from weakened competitors. We expect this will drive further revenue increases, as will the continued expansion of European calling card operations and the ramp-up of our nascent Latin American calling card business.

We expect that margins will remain at or near their current levels, with some margin slippage possible as a result of aggressive pricing on both new cards as well as on some existing cards. We expect that this factor will be partially offset by continued efficiency gains and an improved cost structure.

Consumer Long Distance

Consumer long distance revenues for the quarter were up 18.6% from the previous quarter, and up 99% from the same quarter in Fiscal 2001, due to the continued aggressive growth of our $0.05 per minute long distance plan. We currently have over 400,000 active long distance customers. Gross margins for the consumer long distance business were unchanged from those of the previous quarter, and were slightly lower than those of the previous year.

We anticipate that the consumer long distance business will continue its strong growth over the second half of Fiscal 2002, as we continue to add customers, fueled by increased marketing expenditures, which will allow IDT to continue to take market share from its competitors. The number of active customers is expected to increase by approximately 25% by the end of Fiscal 2002. Consumer long distance revenues are expected to grow at a double-digit rate in each of the next two quarters, and we anticipate that the current margin levels will be maintained.

WHOLESALE

IDT's wholesale carrier business reported revenues of $74.4 million, an increase of 9.1% from the first quarter of Fiscal 2002, representing the first sequential revenue increase in the wholesale carrier division since July 2000. The revenues for the second quarter represented a 28% decline from the revenues recorded in the second quarter of Fiscal 2001. Gross profit margins climbed to 10.6%, up from the first quarter?s 7.5% and the year-ago period's 3.7%. The second quarter?s gross margin performance was the highest for the wholesale carrier business since Q3 Fiscal 2000.

We now believe that the first quarter of Fiscal 2002 represented the low point in wholesale carrier revenues, and we expect to experience revenue growth in this division over the next two quarters, and into Fiscal 2003. We expect that revenue gains will be driven primarily by increased sales to Tier 1 telecom carriers, as well as general sales growth in our European division. We anticipate that gross margins will remain stable at the current significantly improved levels.

IDT Media

IDT Media, formerly IDT Ventures, recorded an operating loss of $5.7 million on revenues of $5.7 million in the second quarter. This compares to a $6.5 million operating loss on revenues of $5.7 million in the first quarter of Fiscal 2002.

As discussed in a separate press release issued today, IDT has renamed its Ventures division IDT Media, Inc. in order to better reflect its strategy and business portfolio. IDT has named Mitch Burg, a media industry veteran and former President & COO of The Media Edge, as CEO of IDT Media.

IDT Media has initiatives in radio, technology and print media. Our radio property, acquired in November, is Talk America Radio Network, a syndicator of programs and features. IDT Media is currently finalizing the purchase of its first radio station, and will continue to pursue other acquisitions. We expect to introduce expanded programming and to distribute it to a larger number of affiliates as the year progresses.

CTM, our brochure distribution business and part of the IDT Media division, enjoys a dominant share of the Eastern United States and Canadian brochure markets. The downturn in the travel and tourism industry since September 11 adversely impacted CTM. However, CTM is expanding its placements in additional locales such as Airline Club lounges, and is developing new revenue streams.

IDT is currently developing three breakthrough approaches to video development and distribution. The first will deliver broadcast quality television signals to the desktop via the Winstar Communications Voice and Data platform. The second is a state-of-the-art global 3D animation studio that has already begun commercial sales. The third is a patent pending peer-to-peer digital video technology.

Division

On December 19, 2001, IDT acquired certain of the U.S. voice and data assets of Winstar Communications, Inc. pursuant to a sale order by the US Bankruptcy Court. The IDT Winstar division recorded an operating loss of $19.1 million on revenues of $19.2 million during the second quarter of Fiscal 2002.

On March 8, 2002, IDT named Brian Finkelstein Chief Executive Officer of its Winstar division and unveiled its strategic plan for Winstar. The plan projects growth in the fixed wireless communications business and significant movement towards profitability. Under this plan, Winstar will exit the wireline resale business entirely and the fixed wireless business in certain smaller markets. IDT will also integrate certain Winstar facilities and functions. Winstar will eliminate approximately 65% of its remaining non-sales workforce and will transfer its customer service operations to an alternate facility. This will reduce Winstar's revenues from about $12 million to $7 million per month.

These changes will significantly reduce Winstar's expense levels, and cut its burn rate from approximately $16 million to about $5 million per month. At the same time, Winstar expects to increase its fixed wireless network by adding approximately 600 new buildings and to significantly expand its sales force. When the plan is fully implemented Winstar will have approximately 4,000 buildings on its network.

"While we anticipate that Winstar could report a larger loss in the fiscal third quarter of this year, those losses should be short-lived as our aggressive cost reduction and expansion plans take hold," said Brian Finkelstein, Winstar CEO. "We see the situation improving significantly in the fourth quarter."

GUIDANCE ON FUTURE OPERATIONS

Looking to the remainder of Fiscal 2002, we anticipate that Telecom revenues will show increases in the mid-single digits, fueled by gains across all major lines of business. We anticipate sustaining gross margins at their current, significantly improved levels for our major Telecom lines of business, with an overall benefit expected as a result of a continued shift in revenue mix toward higher-margin retail revenues.

Within our Media division, we anticipate increasing revenues. However, given the early-stage nature of several of our businesses, the timing and magnitude of future revenues and earnings are difficult to predict.

For our Winstar division, we project breakeven in approximately one year. Current projections also call for solid profitability by late 2003. IDT expects to inject about $85 mllion of working capital (including the $60 million to which IDT committed in bankruptcy court). In conjunction with the strategic Winstar plan, IDT has undertaken a thorough analysis of the potential salvage value of its equipment. This will enable the Company to sell non-essential assets. We expect such sales, in addition to an aggressive attempt to collect receivables, to enable the Company to recoup the majority of the working capital required. Thus the net effect of Winstar on the IDT cash position should be minimal.

CONFERENCE CALL INFORMATION

In connection with this release of quarterly and annual results, the Company will be hosting a conference call today for analysts, investors and the general public, at 4:30 PM EST.

To access the call from the U.S., dial 1-800-775-2298. For international callers, the dial-in number is 1-706-679-3357. No passcode is required. A replay of the teleconference will be available for one week after the conference call at 1-800-642-1687, passcode #3496771 for domestic callers, or 1-706-645-9291, passcode #3496771 for international callers.

Alternatively, interested participants may access a webcast of the conference call by visiting the IDT Corp. website, at http://www.idt.net. A direct link to the call will be found on the website. Listening to the webcast of the call will require Real Audio software. Please allow at least 15 minutes to download the necessary audio software prior to the call. An archived copy of the call will we available at the IDT website in the Investor Relations section's Audio Archives.

IDT CORPORATION

IDT, through its IDT Telecom subsidiary, is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT Telecom provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT Media is the IDT subsidiary principally responsible for the Company?s initiatives in media, new video technologies and print media. Through its various subsidiaries, IDT has interests in several telecom, Internet-related and media companies. Recent IDT acquisitions include Winstar Communications, Net2Phone, and Talk America Radio Network.

Mary Jennings
Manager, Investor Relations
973-438-3113