Sale of IDT’s European Prepaid Payment Services Business To Neovia Will Not Close

IDT Corporation (NYSE: IDT; IDT.C) said that it was informed today by
NEOVIA Financial Plc (“Neovia”) that the previously announced sale of
IDT’s European prepaid payment services business to Neovia would not be
consummated.

On March 19, 2009, the Gibraltar Financial Services Commission (“FSC”)
informed Neovia that it would not approve the previously announced sale
of IDT’s European prepaid payment services business, IDT Financial
Services Holding Limited, to Neovia until the FSC received the required
notification from a specific shareholder of Neovia. On March 20, 2009,
Neovia informed IDT that this shareholder is unwilling to provide the
requested notification to the FSC.

IDT is considering its options with respect to the business and Neovia’s
actions.

About IDT Corporation:

IDT
Corporation (www.idt.net)
is a multinational holding company focused on the telecommunications and
energy industries. IDT Corporation’s Class B Common Stock and Common
Stock trade on the New York Stock Exchange under the ticker symbols IDT
and IDT.C, respectively.

IDT Corporation
Bill Ulrey, 973-438-3838