Business Editors/High-Tech Writers

NEWARK, N.J.--(BUSINESS WIRE)--Sept. 18, 2003

IDT Contact Services Acquires Two Teleservices Centers

IDT Corporation (NYSE: IDT, IDT.C) today announced the creation of IDT Contact Services, a new business unit that will develop, manage and provide call center services to IDT and to external clients. In addition, the company announced the acquisition of two existing teleservices companies, Marketing Ally, based in Provo, Utah and Contact America, Inc, headquartered in LaJolla, California. IDT Corporation is a multinational carrier, telephone and technology company.

"IDT Contact Services hits the ground running," said Howard Jonas, Chairman and Founder of IDT. "In an industry where others are falling by the wayside, IDT will thrive. Not only will we save money by fulfilling our own teleservices needs but the new division will generate significant revenue by providing high quality call center services to other companies."

IDT Contact Services consists of the two recently acquired call centers companies in the United States, IDT's existing U.S. based call centers and a customer contact services center in Israel. The IDT Puerto Rico customer service center will also work with IDT Contact Services.

Both of the newly acquired companies are well established with existing clients. Marketing Ally is a full-service call center providing customer service and order processing, lead generation, and market and political surveying. Contact America, Inc., manages several centers throughout the US. Both companies are expected to retain their current management and staffing.

"Our plan is to create a wide reaching network of call centers to service companies around the globe," said Jim Courter, IDT's CEO. "Using our existing telecom infrastructure, our expertise in efficiently routing calls and our growing international presence, we can offer companies around the clock call center services that will outperform the competition."

IDT Contact Services will offer both in-bound and out-bound telemarketing services including lead generation, telesales, customer service, charitable fundraising and surveying. The workforce is both multi-lingual and multi-cultural with international backgrounds that can be matched to potential clients and their customers.

IDT Corporation, through its IDT Telecom, Inc. subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. IDT Telecom, by means of its own national telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media Corporation own 95% and 5% of IDT Telecom, respectively. Liberty Media Corporation also owns a 5.6% stake in IDT Media. IDT Media, Inc. is the IDT subsidiary principally responsible for the Company's initiatives in media, new video technologies and print media. Winstar Holdings, LLC is the IDT subsidiary through which we provide broadband and telephony services to commercial and governmental customers through a fixed-wireless and fiber infrastructure. In December 2002, we announced that the services offered by Winstar would begin to be offered under the name "IDT Solutions." Net2Phone, Inc., a subsidiary of IDT Corporation, is a leading provider of high-quality global retail Voice over IP services, either directly or via a partner.

IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our retail telecommunications services, particularly our prepaid calling card business; availability of termination capacity; financial stability of our customers; our ability to maintain carrier agreements with foreign carriers; effectiveness of our marketing and distribution efforts; increased competition, particularly from regional bell operating companies; our ability to manage our growth; competitiveness of our Winstar subsidiary; impact of government regulation; our ability to obtain telecommunications products or services required for our products and services; and general economic conditions, particularly in the telecommunications markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.