IDT Reports Record Revenues for First Quarter Fiscal 2005 • 13th Consecutive Quarter of Record Revenues • Consolidated Gross Margins Highest in 6 Years • IDT Entertainment Adds Management Talent

NEWARK, N.J. — December 8, 2004 —IDT Corporation (NYSE: IDT, IDT.C) today reported record quarterly revenues of $629.7 million for the first quarter of its fiscal 2005, the three months ended October 31, 2004. First quarter revenues increased 22.7% versus the first quarter of fiscal 2004’s revenues of $513.1 million and 3.0% over the prior quarter’s $611.2 million. Consolidated gross margins of 25.4% were the highest recorded in six years.

First quarter of fiscal 2005’s net loss was $11.7 million, or ($0.12) per share, as compared to a net loss of $14.0 million, or ($0.17) per share, in the first quarter of fiscal 2004 and to a net loss of $23.3 million, or ($0.25) per share, in the fourth quarter of fiscal 2004.

As of October 31, 2004, cash, cash equivalents and marketable securities stood at $999.6 million, including $125.8 million held by Net2Phone.

Loss from operations for the first quarter of fiscal 2005 was $11.9 million, compared to losses from operations of $18.4 million and $29.0 million for the first quarter of fiscal 2004 and the fourth quarter of fiscal 2004, respectively.

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