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IDT Corporation (NYSE: IDT; IDT.C) announced today that its founder and
Chairman, Howard Jonas, has elected to receive his base compensation in
the form of IDT stock rather than cash.
Under the agreement between Mr. Jonas and the Company, Mr. Jonas – who
is entitled to annual base salary of $856,000 but has been accepting
only $750,000 – will be paid his base compensation for calendar years
2009 through 2011 in IDT Common Stock (NYSE: IDT-C) rather than in cash.
Mr. Jonas will receive 1,704,545 shares (all of which will vest on
January 5th, 2012) based on the stock‘s
September 3rd, 2008 closing price of $1.32 per
share.
“The market‘s
valuation of IDT is absurdly low,“ Mr. Jonas
said. “The company is on track to achieve
operational profitability in fiscal 2009. Our core businesses are
generating positive cash flow, and we are incubating several ventures
that have the potential to generate truly remarkable returns for our
shareholders.“
Mr. Jonas‘ decision follows significant
purchases of the company‘s stock by other
members of senior management earlier this year. In March, CEO James A.
Courter and members of his family collectively purchased $2.98 million
(790,000 shares) of Class B Common Stock and President Ira A. Greenstein
purchased over $205,000 (55,000 shares) of Class B Common Stock.
About IDT Corporation:
IDT
Corporation (www.idt.net) is a
multinational holding company with subsidiaries spanning several
industries including: IDT Telecom,
which provides telecommunications services to consumers and businesses,
including prepaid and rechargeable calling cards, local, long distance
and wireless phone services, wholesale carrier services, and a range of
voice over Internet protocol (VoIP) communications services; IDT
Energy (www.idtenergy.com),
which operates an Energy Services Company (ESCO) in New York State; IDT
Carmel, which manages receivables portfolios and collections; Zedge
(www.zedge.net), which provides a
web-based, worldwide destination for free, user-generated mobile content
distribution and sharing; American Shale
Oil Corporation (AMSO) (www.amso.net),
which manages IDT’s U.S. oil shale research and development initiative,
and IDT Capital, whose portfolio
of companies includes IDT Spectrum
(www.idtspectrum.com), CTM
Media Group (www.ctmmediagroup.com),
and IDW Publishing (www.idwpublishing.com).
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.
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those with 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.All forward-looking statements and
risk factors included in this document are made as of the date hereof,
based on information available to IDT as of the date thereof, and IDT
assumes no obligation to update any forward-looking statements or risk
factors.
IDT Investor Relations:
Bill Ulrey, 973-438-3838
