IDT Reports Results, Including Record Revenues, for Fourth Quarter and Fiscal 2004 ·Fiscal Year Consolidated Revenues Increase 20.8% ·IDT Telecom Fiscal Year Operating Profits Surge 23.8% ·IDT Entertainment Fiscal Year Revenues Top $100 Million ·Cash, Cash Equivalents & Marketable Securities Remain Above $1 Billion

NEWARK, N.J. — October 14, 2004 —IDT Corporation (NYSE: IDT, IDT.C) today reported record annual revenues of $2.217 billion for fiscal 2004, up 20.8% from fiscal 2003’s $1.835 billion of revenues, and record quarterly revenues of $611.2 million for the fourth quarter of its fiscal 2004, the three months ended July 31, 2004. Fourth quarter revenues increased 8.1% over the prior quarter’s $565.7 million and 25.8% versus the fourth quarter of fiscal 2003’s revenues of $485.7 million.

Fourth quarter of fiscal 2004’s net loss was $23.3 million, or ($0.25) per share, as compared to a net loss of $76.8 million, or ($0.84) per share, in the third quarter of fiscal 2004 and to net income of $8.3 million, or $0.10 per diluted share, in the fourth quarter of fiscal 2003. For fiscal 2004, IDT recorded a net loss of $95.7 million, or ($1.09) per share, compared with a net loss of $17.5 million, or ($0.22) per share, in fiscal 2003.

Cash, cash equivalents and marketable securities stood at $1.062 billion, including $132.8 million held by Net2Phone, as of the close of fiscal 2004.

Loss from operations for the fourth quarter was $29.0 million, compared to losses from operations of $58.4 million and $29.4 million for the third quarter of fiscal 2004 and the fourth quarter of fiscal 2003, respectively.

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