NEWARK, N.J.- October 29, 2001 -IDT Corporation (NYSE: IDT, IDT.B) today reported revenues of $331.0 million for the fourth quarter of its Fiscal Year 2001, the three months ended July 31, 2001, down 1.4% from the third quarter of 2001 and an increase of 21.8% over the revenues recorded during the fourth quarter of Fiscal 2000. For the fiscal year ended July 31, 2001, IDT recorded revenues of $1.231 billion, up 12.5% from Fiscal 2000. As presented in this report, per share figures for all periods are based on pro forma shares outstanding, which have been adjusted to take into account the Company's Class B stock dividend, which was paid in May 2001.

The net loss for the quarter was $171.8 million, or $2.44 per share. This compares with a net loss of $29.2 million, or $0.41 per share, in last year's Q4. For Fiscal 2001, the Company recorded net income of $532.4 million ($7.12 per diluted share). This compares with net income before extraordinary items of $233.8 million ($3.11 per diluted share) in Fiscal 2000.

Results in all periods were affected by non-operating items. For the fourth quarter of Fiscal 2001, results included a writedown of the value of our Tycom fiber asset, reflecting the recent dramatic price declines in the worldwide bandwidth markets. This resulted in an after-tax impairment charge of approximately $120.0 million ($1.70 per share). In addition, IDT recorded a total of approximately $7.7 million ($0.11 per share) in investment and other losses, related to the Company's pro rata interest in the net loss recorded by Net2Phone (NASDAQ: NTOP), Teligent, Inc. and ICG Communications, Inc. Excluding these charges, the net loss for the fourth quarter of Fiscal 2001 amounted to $44.1 million, or $0.63 per share.

For Fiscal 2001, non-operating items contributed after-tax net income of approximately $648.7 million ($8.67 per share). Excluding these items, the net loss for the year amounted to $116.3 million ($1.56 per share).

"Fiscal 2001 was a year of both triumph and challenge for IDT," said Howard Jonas, Chairman and CEO of IDT. "During the year, we witnessed the bankruptcies of many of our direct competitors, as well as the failures of numerous other Telecom-related companies. Through it all, however, we continued our growth, and finished the year with $1.1 billion in cash, which should provide our shareholders with great hope for the future."

MAJOR DEVELOPMENTS

Last week, IDT announced that it was leading a consortium that would concentrate ownership of approximately 50% (64% of the voting power) of Net2Phone (NASDAQ: NTOP). The consortium consists of IDT, Liberty Media Corporation (NYSE:LMC.A, LMC.B) and AT&T (NYSE: T), resulting in significant economic stakes in Net2Phone for all three parties.

IDT and AT&T contributed their shares of Net2Phone (approximately 10 million and 18.9 million respectively) to a newly formed Limited Liability Company (LLC). Liberty then acquired a substantial portion of the LLC's units from AT&T, while IDT increased its stake and AT&T retained a significant interest. IDT will be the managing member of the LLC. By working closely with Net2Phone's management team, we plan to enhance value for all Net2Phone shareholders.

RESULTS OF OPERATIONS

The Company's loss from operations for the fourth quarter of Fiscal 2001 (excluding impairment charges) amounted to approximately $74.4 million. This included approximately $26.4 million in non-cash expenses relating to the funding of the IDT Charitable Foundation with an initial contribution of 2.2 million IDT Class B common shares. In addition, we incurred approximately $6.5 million in primarily non-cash expenses relating to an executive retirement package associated with the recently completed restructuring of the Company. Excluding these items, the operating loss for the quarter came to approximately $41.5 million, compared to an operating loss $50.4 million in the third quarter of Fiscal 2001.

"Throughout Fiscal 2001, we took the steps necessary to lay the groundwork for a profitable Fiscal 2002, in both our Telecom and Ventures divisions," said Jim Courter, IDT's Vice Chairman and CEO. "I am confident that we will begin to see the fruits of our labor as early as in the first quarter of Fiscal 2002."

TELECOMMUNICATIONS

IDT's core telecommunications business reported revenues of $324.4 million for the fourth quarter of Fiscal 2001, up 31% from the same period last year, and 2.1% lower than last quarter.

Gross margins for the Company's core telecommunications business amounted to 14.2%, up from 10.4% in the third quarter of 2001, and representing the highest quarterly gross margin performance for Telecom since the third quarter of Fiscal 2000. For the year, revenues were $1.205 million, up 18% from Fiscal 2000, while gross margins were 12.2%, versus 14.2% in Fiscal 2000.

The growth in revenues from last year's levels is attributable to gains in retail revenues, particularly in our prepaid calling card and consumer long distance divisions, which offset lower wholesale carrier revenues.

EBITDA (Earnings Before Interest, Taxes and Depreciation and Amortization, and excluding minority interests) in the fourth quarter for the telecommunications business amounted to a loss of $15.9 million, versus a loss of $20.0 million in the third quarter of 2001 and $49.8 million in the same quarter last year. For the year, Telecom EBITDA amounted to a loss of $74.6 million, versus a loss of $9.2 million in Fiscal 2000.

RETAIL

IDT's retail division posted $244.2 million in revenues for the fourth quarter, up 2.8% from the previous quarter, and more than double the retail revenues recorded during the same quarter last year. For the year, retail revenues amounted to $816.4 million, up 63% from Fiscal 2000.

PREPAID CALLING CARDS

Prepaid calling card revenues amounted to $223.3 million for the fourth quarter, up 1.0% from the previous quarter, and more than double the prepaid calling card revenues of the fourth quarter of Fiscal 2000. For Fiscal 2001, prepaid calling card revenues came to $754.0 million, up 61% from Fiscal 2000.

The strong year-to-year growth in prepaid calling card revenues was fueled primarily by the February 2001 acquisition of the calling card operations of PT-1. In addition, IDT made market share gains at the expense of competitors who left the industry, or significantly scaled back their operations. We also benefited from the continued geographic expansion of our debit card distribution operations into areas outside our traditional northeast U.S. strongholds.

During the fourth quarter, prepaid calling card margins improved from the third quarter's levels, reflecting the successful migration of the minutes-of-use generated by the PT-1 calling cards onto IDT's debit card platform. Compared to Fiscal 2000, prepaid calling card margins narrowed, reflecting residual competitive pricing pressure, which began to ease in some markets toward the end of the fiscal year.

Looking to Fiscal 2002, we expect prepaid calling card revenues to continue to grow, albeit at a slower pace than we experienced in Fiscal 2001. In particular, we anticipate that increased calling card sales in Europe and Latin America will be the primary drivers behind the expected growth in calling card sales in Fiscal 2002.

CONSUMER LONG DISTANCE

Consumer long distance revenues for the quarter were up 38% from the third quarter, and nearly quadrupled from the same quarter in Fiscal 2000, as the Company's $0.05 per minute long distance plan continues to attract new customers. For Fiscal 2001, consumer long distance revenues totaled $56.1 million, up from $13.7 million in Fiscal 2000. We currently have over 300,000 active long distance customers.

During the fourth quarter, gross margins for the consumer long distance business improved significantly, compared to both the previous quarter and the prior year period, continuing to benefit from increased scale. In addition, our customer acquisition costs remain well below industry averages, allowing us to grow our consumer long distance business in a disciplined manner. We anticipate that the consumer long distance business will continue its strong growth in Fiscal 2002, as we continue to add customers, and as we continue to rollout new, aggressively-priced international calling plans.

WHOLESALE

IDT's wholesale carrier business reported revenues of $80.3 million, down 14% from the third quarter of Fiscal 2001, and a 40% decrease from the fourth quarter of Fiscal 2000. For the year, wholesale carrier revenues of $388.1 million were 25% lower than those recorded in Fiscal 2000.

The decrease in wholesale carrier revenues reflects an ongoing shift in the Company's wholesale customer base. Throughout Fiscal 2001, the Company has repositioned its domestic wholesale carrier business, in response to the declining financial fortunes of several of its customers. We have significantly reduced sales to customers that we have labeled as overly risky, with an eye towards reducing overall exposure to these companies. Over time, we intend to replace these revenues with sales to more financially stable customers. Toward that end, we have restructured our carrier group, focusing on forging long-term strategic relationships with the world's largest multinational telecom carriers.

Gross margins for the wholesale carrier business continued to improve in the fourth quarter, and improved sequentially during each quarter of Fiscal 2001. However, wholesale carrier margins remain below the levels seen throughout most of Fiscal 2000, with pricing pressures only recently having begun to abate in some of our key markets.

IDT VENTURES

The IDT Ventures division recorded an operating loss of $7.6 million (before an impairment charge), on revenues of $5.0 million, in the fourth quarter of Fiscal 2001. This compared to a $15.6 million operating loss, on revenues of $2.8 million, in the third quarter of Fiscal 2001. For the year, IDT Ventures recorded an operating loss of $60.1 million before the impairment charge (writing down the Tycom fiber), compared to an operating loss of $27.3 million in Fiscal 2000. Revenue for IDT Ventures for Fiscal 2001 amounted to $16.6 million, compared to revenues of $1.6 million in Fiscal 2001.

GUIDANCE FOR FISCAL 2002

Looking to Fiscal 2002, we anticipate that Telecom revenues will post a double-digit increase, fueled by higher retail revenues. In particular, we anticipate growth in pre-paid calling card sales, both in the U.S. and abroad, and continued strong gains in domestic long distance revenues. Wholesale carrier revenues are expected to decline from the level attained in Fiscal 2001, but are expected to bottom out in the first half of the year, with some sequential gains anticipated in the second half of Fiscal 2002. We anticipate increasing gross margins 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 Ventures division, we anticipate improved operating results, primarily reflecting the recent implementation of stricter management controls over operating expenses, and the recent restructuring of our business portfolio, with a shift in focus towards more stable businesses. We also expect higher Ventures revenues in Fiscal 2002. However, given the early-stage nature of several of our Ventures businesses, the timing and magnitude of future revenues are often difficult to predict.

CAPITAL MARKETS

On May 4, 2001, IDT declared a stock dividend of one share of Class B common stock for every one share of common stock, Class A common stock and Class B common stock. The shares of IDT's Class B common stock are entitled to one-tenth of a vote per share. IDT distributed the dividend shares on May 31, 2001 and the Class B common stock commenced trading on the NYSE on June 1, 2001. As of October 29, 2001, there were an aggregate outstanding total of 71,016,194 shares of IDT common stock of all classes. This calculation excludes shares owned by IDT affiliates, conforming to the calculation of shares outstanding used in our financial statements to determine per share figures.

PRESENTATION OF FINANCIAL RESULTS

On August 11, 2000, IDT completed the sale of the majority of its shares of Net2Phone to AT&T. As a result of that transaction, our voting interest in Net2Phone was reduced from approximately 56% to approximately 21%. Consequently, in accordance with Generally Accepted Accounting Principles (GAAP), beginning with the first quarter of Fiscal 2001, we ceased consolidating Net2Phone's financial results into IDT's financial results. Therefore, as presented above, our results for Fiscal 2000 include Net2Phone operations, while Fiscal 2001 results do not, except for our proportionate equity participation in Net2Phone's loss for that period. This is in line with the manner in which the results for the Fiscal 2000 and Fiscal 2001 periods were reported in our Annual Report on Form 10K for the period ended July 31, 2001, which was filed today with the Securities & Exchange Commission (SEC).

As a result of our recently-announced transaction with AT&T and Liberty Media, we will once again own a control position in Net2Phone.

In addition, as discussed in our Annual Report of Form 10K for the fiscal year ended July 31, 2001, which the Company filed today, we intend to adopt SFAS No. 142, relating to the evaluation of intangible assets, as of August 1, 2001, the first day of Fiscal 2002. The adoption of this accounting principle will result in a significant non-cash impairment of our net intangible assets during the first quarter of Fiscal 2002.

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 #2114924 for domestic callers, or 1-706-645-9291, passcode #2114924 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 is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its wholesale and retail customers worldwide.

Through its own national telecommunications backbone and fiber optic network infrastructure, IDT provides its customers with integrated and competitively priced international and consumer long distance telephony, and prepaid and rechargeable calling cards. The Company's Ventures division is developing several innovative telecom, Internet and media-related businesses. Through its IDT Investments subsidiary, IDT has equity interests in several telecom and Internet-related companies.

Investors:
Mary Jennings
Manager, Investor Relations
(973) 438-3124