IDT Reports Results for Fourth Quarter and Fiscal Year 2003 · Annual Consolidated Revenues Increase 16% · IDT Telecom ’03 Operating Profits Double Those of ‘02 · Strong Cost Controls Yield a $30 Million Year-over-Year Improvement in Consolidated SG&A Expenses ·Cash, Cash Equivalents & Marketable Securities Remain Above $1 Billion

NEWARK, N.J. — October 23, 2003 —IDT Corporation (NYSE: IDT, IDT.C) today reported record revenues of $485.7 million for the fourth quarter of its Fiscal Year 2003, the three months ended July 31, 2003. Revenues for the fourth quarter increased 6.8% from the third quarter, and 12.7% over the revenues recorded during the fourth quarter of Fiscal Year 2002. For Fiscal Year 2003, IDT recorded revenues of $1.8 billion, up 15.8% from Fiscal Year 2002.

Net income for the fourth quarter of Fiscal Year 2003 was $8.3 million, or $0.10 per diluted share. This compares with a net loss of $78.2 million, or ($0.99) per share, in Fiscal Year 2002’s fourth quarter, and a net loss of $9.3 million, or ($0.12) per share, in Fiscal Year 2003’s third quarter. For the Fiscal Year ended July 31, 2003, IDT recorded a net loss of $17.5 million or ($0.22) per share, compared with a net loss of $303.3 million or ($4.04) per share in Fiscal Year 2002.

As of the close of the fourth quarter of Fiscal Year 2003, consolidated cash, restricted cash, cash equivalents and marketable securities stood at $1.0 billion, which includes $94.1 million held by Net2Phone.

IDT recorded a loss from operations of $29.4 million for the fourth quarter of Fiscal Year 2003. This compares with a loss from operations of $158.6 million in Fiscal Year 2002’s fourth quarter, and a loss from operations of $37.9 million in Fiscal Year 2003’s third quarter. Excluding the $16.0 million loss from operations of Net2Phone (IDT’s Internet Telephony business segment)1, the loss from operations would have been $13.3 million in the fourth quarter of Fiscal Year 2003. This compares with a loss from operations of $141.1 million in Q4 of Fiscal Year 2002, and a loss from operations of $28.1 million in the third quarter of Fiscal Year 2003, a 52.3% sequential quarterly improvement.

For Fiscal Year 2003, consolidated SG&A expenses declined 6.6%, or $29.7 million from $451.5 million to $421.8 million, decreasing from 28.5% of Fiscal Year 2002 revenues to 23.0% of Fiscal Year 2003 revenues. SG&A expenses for Q4 of Fiscal Year 2003 were $14.7 million lower than in Q4 of Fiscal Year 2002, a 12.3% decline. Compared to the third quarter of Fiscal Year 2003, SG&A expenses were exactly even at $105.0 million. This amounted to 21.5% of Fiscal Q4 2003 revenues, versus 23.1% of Fiscal Q3 2003 revenues.

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