Howard Jonas, Chairman

Jim Courter, Chief Executive Officer

Ira Greenstein, President

Steve Brown, Chief Financial Officer

Marcelo Fischer, Chief Accounting Officer

IDT Corporation

December 2003Confidential

2

Market Cap: $1.6 BillionFiscal 2003 Revenues: $1.8 BillionCash Balance: $1 BillionExchange: NYSEHeadquarters: Newark, NJEmployees: 3,800Offices: 17 Countries On 5 ContinentsState Of Incorporation: Delaware

Equity Research: Wm Smith Securities, Janco PartnersAttorneys: McDermott Will & EmeryAuditors: Ernst & YoungBoard Representation: 8 Outside Directors, 6 Inside DirectorsTickers: IDT IDT.C Class A

Price As Of 12/12/03: $20.00 $19.25 Not Traded52 Week High: $20.50 $19.5052 Week Low: $13.75 $13.70Shares Outstanding: 51.2 Mil. 22.1 Mil. 9.8 Mil. 83.1 Mil Total

As Of 10/20/03

Summary Market Information

IDT Corporation

3

IDT Revenue Run Rate Q4 2003

Media(94% owned)$23 million

Solutions(100% owned)

$85 million

Entertainment(94% owned)$48 million

Digital ProductionSolutions

(90% owned)

Film Roman(82% owned)

Vanguard Anim.(12.5% owned)

OTV

Liberty Broadcasting

WMET

CTMBrochure Display

Net2Phone Global Services

Net2Phone Cable Telephony

Telecom(95% owned)$1.8 billion

Net2Phone(controlled, 22% owned)

$76 million

ConsumerPhone Services

$149 million

Callback $0.5 million

Retail$1.3 billion

Calling Cards$1.17 billion

Domestic$955 million

International$165 million

Wholesale$502 million

IDT Corporation

IDT CorporationRevenue $2.1 billion

MainFrameEntertainment(62% owned)

Anchor BayEnt. (100% owned

upon closing)

4

Economic Interest: Voting Interest:

Retail Holders 20.6%

Howard Jonas 21.4%

Liberty Media 12.3%

AT&T 1.6%

Institutional Holders 43.9%

Institutional Holders 33.0%

Retail Holders 8.6%

Howard Jonas 56.3%

AT&T 0.2%

Liberty Media 1.8%

Class B 51.2 Million Shares NYSE: IDT 1/10 Vote/Share

Common 22.1 Million Shares NYSE: IDT.C 1 Vote/Share

Class A 9.8 Million Shares 3 Votes/Share

Class A Convert To Common Upon Sale

Ownership & Control Of IDT Corporation

IDT Corporation

5

IDT History

IDT Corporation

0

100

200

300

400

500

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2Q95 4Q95 2Q96 4Q96 2Q97 4Q97 2Q98 4Q98 2Q99 4Q99 2Q00 4Q00 2Q01 4Q01 2Q02 4Q02 2Q03 4Q03

International Retail Serv ices Wholesale Carrier Serv icesInternet/Media Net2PhonePrepaid Calling Cards Consumer Phone Serv icesSolutions Entertainment

July 1997Begin Marketing

Prepaid CardsJuly 1996

Launch Net2Phone

October 2001Reacquire NTOP

Control

December 2001Acquire Winstar

Assets

March 1996IPO

February 2001List on NYSEAcquire PT1August 2000

Sell NTOP Shares To AT&T

July 1999Net2Phone IPO

April 1995 IntroduceCarrier Service

6

IDT Telecom

7

Overview Telecom Fast Facts

Provides retail and wholesale telecommunications services worldwide

Telecom minutes-of-use run-rate in excess of 1.5 billion minutes per month, 19 billion annually

Fiscal 2003 revenue of $1.6 billion

Operating Income ($ millions) Telecom Minutes Of Use (millions)

Revenue ($ millions)

IDT Telecom

0

5

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15

20

25

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

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200

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400

500

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

0200400600800

1,0001,2001,4001,600

Aug

-02

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Nov

-02

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Jan-

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8

Telecom Major Services

Calling cards– Monthly sales exceed 18 million cards– Over 350,000 global points of distribution– Access to 230 countries– Private label - high margin business

• Walgreens – Largest major retail private label customer• Also sell corporate cards and promotional cards

Consumer phone services– Five cents-a-minute plan has over 525,000 customers– America Unlimited Flat Rate Service roll out began in August 2003– America Unlimited customer count 70,000 and growing about 8,000 per week– Currently offered in NY, NJ, PA, MD, DE, WV, MA and NH

Wholesale carriers

IDT Telecom

9

Wholesale Carrier

Our customers include most of the largest, most important Telecom companies in the world.

IDT Telecom

10

Calling Cards $1,080.0 $240.0 292.0 66.27.9%

Wholesale Carrier 405.5 45.6 125.6 13.8 50.5%

Consumer Phone Services 152.0 85.8 37.2 19.44.4%

Callback 1.3 0.7 0.1 ––

Total $1,638.7 $372.2 455.0 99.616.6%

Contribution Of Telecom Services

22.2%

11.2%

56.5%

59.3%

22.7%

IDT Telecom

$ MillionsFiscal 2003

Revenue Gross ProfitsQ1 2004

Revenue Gross Profits

22.7%

11.0%

52.2%

57.4%

21.9%

RevenueGrowth

11

U.S. Calling Card OperationsDark blue shaded areas represent states where significant numbers of IDT calling cards are distributed.

IDT Telecom

12

IDT Solutions

Services provided by Winstar Communications L.L.C., an IDT Company

13

The Winstar Network

Hybrid fixed-wireless and fiber infrastructure

“Last Mile” wireless connectivity to customer using licensed commercial spectrum – Spectrum holdings cover 100% of U.S.

Rights to 1,200 intra-city fiber miles and 250 interstate fiber miles

Access to nationwide fiber network

Customer building to hub to switch– 4800 Buildings with access rights– 2300 Provisioned (wired) buildings– 154 Hubs– 5 Data POPs– 21 Voice switches– 54 Data switches

Two network operating centers– Herndon, VA– Seattle, WA

IDT Solutions

14

Service Offerings

IDT Solutions provides a full range of broadband and telephony services to commercial and governmental customers.

– Voice services• Local • Long distance (dedicated & switched) • International

– Internet & data services• High Speed Internet• Dedicated internet• Private lines• WAN

– Other services• Conferencing• Web hosting• Calling cards

IDT Solutions

Winstar Central Office

Customer Location

15

IDT Solutions Unique Value Proposition

One of few carriers that can deliver a bundled suite of local, long distance and data services

Provide true network diversity and redundancy to fiber-based networks

Competitive pricing

Service reliability, performance and security – multi-layered fault tolerant architecture

IDT Solutions

16

IDT Solutions Acquisition

December 19, 2001, – April 17, 2002

Cash $ 30.0 millionIDT Class B Shares 25.8 millionPurchase $ 55.8 million

Working Capital* 150.0 million

Total $205.8 million

IDT Solutions

*Amount funded as of July 2003

17

AtlantaBaltimoreBostonChicago*CincinnatiDallas/Ft. Worth*DenverDetroitHoustonLos Angeles*MiamiMinneapolis/St PaulNew York City* Newark (NJ)Orange County (CA)PhiladelphiaPhoenixSan FranciscoSeattleStamford (CT) TampaWashington DC*

22 Cities Of IDT Solutions

IDT Solutions

*Top 5 cities (account for 45% of on-net revenue)

17 Offices

12,500 Customer accounts

18

IDT Solutions Burn Reduction Plan

Interim Goal – $2.5 Million Maximum Monthly Cash Burn

Reduce excess capacity on network

Terminate leases on buildings with limited revenue potential

Measure and enforce productivity targets for sales

Eliminate underused hubs, thereby further reducing real estate and capacity costs without sacrificing current or future revenue

Reduce headcount

Burn Reduction Plan

Preserves current revenue

Does not prevent future growth

Does not destroy asset value

IDT Solutions

19

Leadership In …

High Quality 3D Computer Animation And 2D Cel Animation

Developing/Acquiring Libraries Of Animated Intellectual Properties

Distribution Of Owned And Licensed Intellectual Properties To Retail

IDT Entertainment

20

Global Animation Studios

4 production hubs in Newark, LA, Toronto, Israel linking 2500 global animators Highest quality animation at low costs, high speed and improved management control Recent productions: Monster Monster Trucks, Cabbage Patch Kids – JUMP!, Hip Hop & Hamilton Currently in development: Starpoint Academy, Happily N’ever After, one other film Requires credibility and recognition to gain access to better project flow

Film Roman, Inc. Controlling interest acquired May 2003 Leading 2-D animation producer of primetime series (Simpsons™, King of the Hill™) Creative strength and credibility in the television industry

IDT Entertainment

21

Vanguard Films, Inc. Minority stake purchased in July 2003 Feature film industry powerhouse known for creativity, discipline, efficiency Relationships with Disney, Dreamworks, Warner Brothers, Sony, Nickelodeon

Mainframe Entertainment Inc. Controlling interest acquired September 2003 Leading 3-D animation producer for TV and direct-to-video products Canadian animation hub Relationships with Hasbro, Mattel, Sony

Anchor Bay Entertainment Group A leading independent video distributor of licensed intellectual properties to retailers such as Wal-Mart, K-

Mart and Target Specializes in horror and children genres; #1 distributor of fitness home-video titles Relationships with proven Hollywood directors including Sam Raimi, Werner Herzog and George Romero Distributes titles such as Thomas the Tank Engine and Crunch fitness videos

IDT Entertainment

22

IDT Entertainment

Film Roman(85% owned)

Anchor Bay(100% owned)

Starpoint Academy

Monster Monster Trucks

Happily N’Ever After

Hip Hop & Hamilton

Valiant Thomas The Tank Engine

IDT Entertainment

Film Roman(82% owned)

DPS(90% owned)

MainFrame(62% owned)

Vanguard(12.5% owned)

The Simpsons

King Of The Hill

X-Men: Evolutions

Tripping The Rift

Barbie

Spider-Man

Alien Legion

Tony Hawks SHADE

Thomas The TankEngine

Crunch

Halloween

Evil Dead

23

IDT Entertainment Acquisitions

IDT Entertainment

$ Millions DatesFilm Roman, Inc. 2.1 May-03 Sep-03Vanguard Films, Inc. 2.0 Jul. 2003MainFrame Entertainment, Inc. 14.0 Sept. 2003Anchor Bay Entertainment Group 60.0 Dec. 2003

Total 78.1

24

Executive Bios

John Hyde, President and CEO, Film Roman – extensive experience in entertainment production and distribution, as well as management consulting and restructuring of entertainment companies. CEO of Crossroads V Communications and Starbound Records, Chairman and CEO of MCEG Sterling.

John Williams, CEO, Vanguard Animation – originating producer of Shrek, other credits include “The Tuxedo” and “Seven Years in Tibet.”

Neil Braun, President, Vanguard Animation - President of the NBC Television Network, Chairman and CEO of Viacom Entertainment, President of Imagine Entertainment, and Senior Vice President of HBO

Rick Mischel, CEO, Mainframe Entertainment - President and Chief Operating Officer at The Harvey Entertainment Company, Senior Vice President of Live Entertainment.

IDT Entertainment

25

Innovative, Technologically Advanced Communications Platforms

IDT Media

26

Liberty Broadcasting Systems

Barter syndication networks 5 Million+ listeners Long Form programs + features CY 2003 Revenue exceeds CY2002 by about 50% Intelligent product includes current hosts William Kristol and Linda Chavez; Charles Krauthammer

to begin in March

WMET Building out station to 50K watts daytime DC will serve as a distribution point for the new “Intelligent Talk” format Liberty Broadcasting System)

IDT Media

27

Delivering Video To The Office Desktop

Broadcast quality 24/7 news delivered to the office desktop via high speed IP

Research indicates demand for news product at significant markup exists

Content agreements reached

Ops tests completed / Microsoft endorsed

Patent pending “plug-ins” in development

Subscription / advertising financial model

– 1MM desktops = $90MM in annual revenue

Will be marketed via IDT Solutions, private internet and direct to fortune 1000 companies

IDT Media

28

CTM Achieves Record Sales / EBITDA

Primarily distributes brochures to hotels, travel hubs and corporations

10,000+ racks, estimated 70% market share east of the Mississippi in the U.S. and Canada

Recently entered Puerto Rico market

FY 2003 revenue exceeds $15MM

EBITDA approaches 25%

Growth will come from expansion of delivery areas, printing and diversification into collateral distribution

IDT Media

29

Communication Without Borders

Net2Phone

30

Net2Phone Key Points

Interim goal – $2.5 million maximum monthly cash burn

Cable telephony subscribers expected to grow almost 30% annually through 2006, exceeding 22MM subscribers

– Telecom providers in the U.S. projected to lose over $10bn in revenues to cable VoIP by 2012

Net2phone the only fully outsourced, proven “PSTN” quality cable telephony solution for MSOS

Proven ability to develop and deploy VoIP services

Profitable core business, which earned $1.8 million in FY 2003 on revenues of $91 million

Conservative capital structure and strong liquidity. Recent secondary offering netted $63 million, raising liquid assets to $157 million

Net2Phone

31

Net2Phone Voice Over IP Offerings

International Communication Services (ICS) – 55% of NGS revenue– Channel sales

• Integrated sale of VoIP hardware and minutes through distribution channels worldwide• Emerging markets are a significant growth opportunity

– PC-to-phone service– Wholesale Services to Carriers using VoIP technology– Big market opportunities on the horizon as telecommunication markets deregulate, including Latin America and the Middle East

Calling card services – 45% of NGS revenue– Disposable– Rechargeable

Net2Phone cable telephony targeting a sizeable, immediate market– Complete suite of NCT services allow cable companies to deliver residential phone service– Only fully outsourced, proven “PSTN” telecom solution for cable operators– Leverage existing technology– Tailored to meet MSO’s strategic and financial needs– Conforms to CableLabs’ PacketCable standards– Initial contract signed in October

Net2Phone

32

Cable Market Opportunity

Cable telephony a likely replacement for traditional phone– Users spend just as much on cable telephony as they do on regular telephony ($53/month) (FCC and ATT Broadband)– When a cable provider adds telephony services to their suite, penetration rates increase 25-30% (DB Alex. Brown)– Cox reports cable telephony bundle has 30% penetration of homes passed in mature markets– AT&T Broadband reports a 40-50% churn reduction by offering triple play; Cox reports 53% churn reduction among triple play

subs, vs. 25% among video and data only subs– By outsourcing IP telephony, cable operators can reduce their incremental deployment costs for telephony by 90%– Primary line cable telephony revenue to hit $4.4 billion by 2006 (JP Morgan)

Net2Phone’s opportunity: Second tier cable – Internal estimate of Net2Phone’s cable market opportunity is 82 million homes– Competitive edge by offering “triple play”– Second tier companies need incremental revenue– 20% of MSO’s revenue will come from telephony services by 2007 (Goldman Sachs) – Can’t spend the Cap Ex– Have regulatory commitments to deliver telephony– Cable companies do not have telecom expertise

Net2Phone cable business model– Licensing fees– Per minute recurring revenue– Annual maintenance and support fees

Net2Phone

33

Economic Interest: Voting Interest:

NTOP Holdings, LLC 38.8%

Other 61.2%

Net2Phone Investment Breakout

NTOP Holdings, LLC 55.9%

Other 44.1%

As of 11/25/2003 NTOP Holdings, LLC is a group consisting of IDT Corp. and Liberty Media. IDT controls the right to vote for the LLC in most matters, and is the managing member of the LLC. IDT and Liberty Media each also hold 1,250,000 shares of Net2Phone outside the LLC.

Additionally, Net2Phone is obliged to issue 6.9 million shares of restricted Class A Common Stock to IDT upon signing a telecom services agreement which has been negotiated. There are a total of 74.4 million NTOP shares outstanding.

Net2Phone

34

Financial Information

Services provided by Winstar Communications L.L.C., an IDT Company

35

Consolidated Balance Sheet

Financial Information

In Thousands 10-31-01 1-31-02 4-30-02 7-31-02 10-31-02 1-31-03 4-30-03 7-31-03 10-31-03AssetsCurrent assets:Cash and cash equivalents 1,180,350 1,075,882 830,849 415,464 315,830 162,010 243,415 99,046 141,465 Marketable securities 26,709 117,516 294,222 684,502 798,642 916,465 794,259 921,669 859,206 Trade accounts receivable, net 118,628 147,836 133,893 129,308 119,905 123,393 133,127 126,303 134,871 Other current assets 54,664 66,267 60,477 78,796 77,901 85,302 88,199 81,304 80,893

Total current assets 1,380,351 1,407,501 1,319,441 1,308,070 1,312,278 1,287,170 1,259,000 1,228,322 1,216,435

Property, plant and equipment, net 347,048 377,769 296,303 283,506 271,429 281,974 288,070 286,807 291,941

Licenses and other intangibles,net 21,982 27,242 24,826 25,974 24,310 23,503 22,777

Restricted cash 21,290 23,064 23,485

Goodwill 48,984 52,023 35,812 34,411 34,689 34,302 34,424 41,651 41,859

Investments 25,186 34,209 41,838 44,085 43,639 39,194 39,471 41,628 50,749

Other noncurrent assets 200,281 196,839 194,114 80,348 44,581 47,771 54,928 87,367 64,616

Total assets 2,001,850 2,068,341 1,909,490 1,777,662 1,731,442 1,716,385 1,721,493 1,732,342 1,711,862

Liabilities and stockholders' equityCurrent liabilities:Trade accounts payable 139,610 137,725 123,811 128,863 125,537 122,335 97,760 106,836 70,046 Accrued expenses 75,612 125,287 155,806 160,159 138,302 142,599 173,601 179,665 207,477 Deferred revenue 92,884 98,227 106,137 120,206 119,111 122,073 120,836 145,343 146,509 Notes payable - current 7,439 6,955 7,873 Capital lease obligations - current 24,937 27,515 26,116 25,963 26,186 26,324 25,318 27,862 24,989 Other current liabilities 21,824 19,034 12,576 19,491 19,473 34,122 33,412 8,061 7,426

Total current liabilities 362,306 414,743 432,319 454,682 428,609 447,453 450,927 467,767 456,447

Deferred tax liability, net 380,764 344,332 314,573 233,518 227,908 205,420 191,436 150,131 150,131

Notes payable - long term 8,752 8,729

Capital lease obligations - long term 58,642 55,444 51,016 48,068 42,883 41,540 38,502 45,084 46,548

Other Long Term Liabilities 566 2,168 2,142 5,060 5,332 6,565 14,299 24,486 22,630

Total liabilities 811,030 825,416 800,050 741,328 704,732 700,978 695,164 687,468 675,756

Minority Interest 294,162 301,960 180,625 166,564 168,355 162,585 162,184 147,347 135,581

Stockholders' equity:Common stock at par value 698 759 780 794 795 799 805 820 833Additional paid-in capital 496,082 555,393 589,327 606,387 609,371 615,250 636,445 654,170 666,259 Treasury stock (153,375) (153,713) (153,713) (153,713) (153,713) (153,713) (153,713) (150,603) (149,067) Other comprehensive income (10,662) (8,166) (4,678) (2,435) (1,837) (2,397) (4,369) (8,080) (4,754) Deferred compensation (10,907) (9,304) (7,907) Retained earnings 563,904 546,692 497,099 418,737 414,646 402,187 392,884 401,220 387,254

Total stockholders' equity 896,658 940,965 928,815 869,770 858,355 852,822 864,145 897,527 900,525 Total liabilities & equity 2,001,850 2,068,341 1,909,490 1,777,662 1,731,442 1,716,385 1,721,493 1,732,342 1,711,862

Shares outstanding 70,918,604 75,845,492 78,031,042 79,466,303 79,496,690 79,954,255 80,570,054 81,986,556 83,266,466

Note: Net2Phone consolidated starting 10/31/02

36

Years Ending July 31

$ Million 1999 2000 2001 2002 2003

Revenues

Telecommunications

Wholesale 289.0 520.5 388.1 289.3 405.5

Retail 395.5 502.5 816.4 1,121.7 1,233.2

Total Telecom 684.5 1,023.0 1,204.5 1,411.0 1,638.7

Winstar 0.0 0.0 0.0 79.6 87.6

Net2Phone * 30.7 56.1 0.0 71.9 80.8

Internet/Ventures/Media 16.9 14.8 26.4 21.3 27.5

Total Revenues 732.1 1,093.9 1,230.9 1,583.8 1,834.5

Costs and Expenses

Direct Costs 575.0 918.2 1,066.8 1,214.8 1,409.5

Selling, G & A 128.5 342.7 334.0 451.5 421.8

Depreciation & Amortization 36.4 48.6 60.4 83.9 89.3

Non-cash compensation 1.0 3.1 16.4 32.3

Settlement by Net2Phone of litigation (58.0)

Impairment Charges 0.0 0.0 199.4 257.5 13.3

Total Costs and Expenses 739.9 1,310.5 1,663.7 2,024.1 1,908.2

Income (Loss) from Operations (7.8) (216.6) (432.7) (440.3) (73.7)

Minority Interest (3.3) 59.3 (5.7) 151.4 (43.0)

Net Income before Interest and Taxes (11.1) (157.3) (438.4) (288.9) (116.7)

Interest and Other (net) (3.3) 609.5 1,180.2 8.2 28.8

Income (Loss) before Taxes (14.3) 452.2 741.8 (280.7) (87.9)

Taxes 7.3 218.4 209.4 (124.3) (70.4)

Net Income (Loss) before Extraordinary Item (21.6) 233.8 532.4 (156.4) (17.6)

Extraordinary Items (3.3) (3.0) 0.0 (147.0) 0.0

Net Income (Loss) (18.2) 230.9 532.4 (303.4) (17.6)

Adjusted EBITDA 28.6 (167.1) (169.9) (82.5) 61.2

* Net2Phone not consolidated in Fiscal Year 2001; it was reconsolidated on Oct. 23, 2002.

Consolidated Income Statement

Financial Information

37

Consolidated Quarterly Income Statement

Financial Information

$ Millions 10-31-01 01-31-02 04-30-02 07-31-02 10-31-02 01-31-03 04-30-03 07-31-03 10-31-03 % of

Revenues Revenue

Telecommunications

Wholesale 67.5 65.9 73.2 82.7 83.4 95.6 109.2 117.3 125.6 24.5%

Retail 265.3 274.7 285.4 296.2 306.8 308.2 299.9 318.3 329.4 64.2%

Total Telecom 332.8 340.6 358.7 378.9 390.2 403.8 409.0 435.6 455.0 88.7%

Entertainment 0.1 0.3 0.2 4.4 12.1 2.3%

Internet/Solutions 19.2 33.1 27.3 24.5 20.7 20.8 21.6 21.3 4.2%

Net2Phone 3.0 26.4 23.5 18.9 22.6 21.1 19.6 17.4 19.0 3.7%

Ventures/Media 5.7 5.7 4.2 5.7 5.6 4.9 5.3 6.7 5.8 1.1%

Total Revenues 341.6 391.9 419.4 430.8 443.2 450.8 454.9 485.7 513.1 100.0%

Costs and Expenses

Direct Costs 267.1 296.6 323.1 328.0 340.1 349.0 347.1 373.3 394.2 76.8%

Selling, G & A 70.9 129.4 131.5 119.7 105.3 106.6 105.0 105.0 106.6 20.8%20.7% 33.0% 31.4% 27.8% 23.8% 23.6% 23.1% 21.6% 20.8% 0.0%

Non-cash Compensation 0.5 6.3 9.1 0.6 3.9 3.2 16.6 8.5 3.6 0.7%

Depreciation & Amortization 15.9 22.2 23.8 22.0 21.3 21.6 22.3 24.0 22.7 4.4%

Impairment & Other Charges 8.7 15.3 114.4 119.1 (51.8) 1.0 1.7 4.3 4.4 0.9%

Total Costs and Expenses 363.1 469.7 601.9 589.5 418.8 481.5 492.8 515.1 531.5 103.6%

Income (Loss) from Operations (21.5) (77.8) (182.4) (158.6) 24.3 (30.7) (37.9) (29.4) (18.4) -3.6%

Minority Interest 3.3 32.6 111.5 4.1 (46.5) 0.5 (1.0) 3.9 (12.9) -2.5%Net Income before Interest and Taxes (18.2) (45.2) (70.9) (154.6) (22.1) (30.2) (38.9) (25.5) (31.3) -6.1%

Interest and Other (net) (11.3) 12.2 0.1 7.2 4.4 1.4 18.8 4.2 22.1 4.3%

Income (Loss) before Taxes (29.6) (32.9) (70.8) (147.4) (17.7) (28.8) (20.1) (21.3) (9.2) -1.8%

Taxes (18.2) (15.7) (21.2) (69.2) (13.6) (16.3) (10.8) (29.6) 4.7 0.9%Net Income (Loss) before Ex traordinary Item (11.3) (17.2) (49.6) (78.2) (4.1) (12.5) (9.3) 8.3 (14.0) -2.7%

Extraordinary Items (147.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0%

Net Income (Loss) (158.3) (17.2) (49.6) (78.2) (4.1) (12.5) (9.3) 8.3 (14.0) -2.7%

38

Financial Information

Telecom Quarterly Operating Statement

39

Financial Information

IDT Solutions Quarterly Operating Statement

40

Financial Information

Media Quarterly Operating Statement$ Millions 10-31-02 01-31-03 04-30-03 07-31-03 10-31-03

Total Revenues 5.6 4.9 5.3 6.7 5.8

Direct Costs 0.6 0.5 0.3 2.2 0.1

Gross Profit 5.1 4.4 4.9 4.5 5.7

Costs & Expenses

S G & A 5.6 6.2 6.1 5.8 6.4

Depreciation 0.3 0.4 0.6 0.7 0.6

Total Costs & Expenses 5.8 6.6 6.6 6.5 7.0

Loss from Operations (0.8) (2.2) (1.7) (2.1) (1.3)

EBITDA (0.5) (1.8) (1.1) (1.3) (0.7)

Notes: Quarter Ended 7-31-02 omits an impairment charge of $111.1 million due to the write-down of undersea fiber assets.

41

Entertainment Operating Statement

Financial Information

$ Millions 10-31-02 01-31-03 04-30-03 07-31-03 10-31-03

Total Revenues 0.1 0.3 0.2 4.4 12.1

Direct Costs 0.0 0.0 0.0 3.9 10.6

Gross Profit 0.1 0.3 0.2 0.5 1.5

Costs & Expenses

S G & A 0.6 0.9 0.8 1.2 2.1

Depreciation 0.0 0.0 0.0 0.0 0.1

Total Costs & Expenses 0.6 0.9 0.8 1.2 2.2

Loss from Operations (0.5) (0.6) (0.6) (0.6) (0.7)EBITDA (0.5) (0.6) (0.6) (0.6) (0.6)

42

Corporate Quarterly Operating Statement

Financial Information

$ Millions 10-31-01 01-31-02 04-30-02 07-31-02 10-31-02 01-31-03 04-30-03 07-31-02 10-31-03

Costs & Expenses

S G & A 5.5 6.2 5.9 6.5 7.9 8.2 7.9 9.0 8.9Non-cash Compensation 0.5 13.7 0.0 1.7

Depreciation 0.7 0.7 0.6 0.4 0.6 0.3 0.4 0.4 0.4Loss from Operations 6.2 6.9 6.5 6.9 8.5 9.0 22.0 9.4 11.0

Note: The 4-31-03 quarter's non-cash compensation is predominantly due to the exchange of options to purchase IDT.C shares for an identical number

of identically priced shares of IDT.

43

Net2Phone Quarterly Operating Statement

Financial Information

$ Millions 10-31-01 01-31-02 04-30-02 07-31-02 10-31-02 01-31-03 04-30-03 07-31-03 10-31-03

Total Revenues 3.0 26.4 23.5 18.9 22.6 21.1 19.6 17.4 19.0

Direct Costs 1.2 11.1 9.8 7.4 12.6 10.4 10.0 8.9 9.5

Gross Profit 1.8 15.3 13.7 11.5 10.0 10.8 9.6 8.5 9.5

60.5% 58.1% 58.4% 60.7% 44.2% 50.9% 49.2% 49.0% 49.8%

Costs & Expenses

S G & A 3.7 36.5 25.1 17.5 13.7 14.6 12.7 12.6 12.5

Non-cash Compensation 0.5 6.3 6.7 1.0 1.7 2.7 2.7 8.2 1.8

Depreciation 0.7 7.3 7.0 2.9 2.5 2.4 2.3 3.9 2.5

Restructuring, Impairment & Other 5.9 15.3 114.4 7.6 (53.3) 1.1 1.7 (0.2) 0.2

Total Costs & Expenses 10.8 65.4 153.3 29.0 (35.5) 20.7 19.5 24.5 17.1

Income (Loss) from Operations (8.9) (50.0) (139.6) (17.5) 45.5 (10.0) (9.8) (16.0) (7.6)

Adjusted EBITA (1.9) (21.1) (11.4) (6.0) (3.7) (3.8) (3.1) (4.1) (3.1)

44

TelecomSecretary William Cohen

Muni FigueresVito Spitaleri

Net2PhoneStephen Goldsmith

Jesse KingHarry McPhersonJames R. Mellor

Marc J. OpenheimerDan Schulman

Dr. Michael WeissTony Werner

Media &Entertainment

Merv AdelsonRev. Eric CosentinoRabbi Irwin Katsof

Roberto MullerHarvey Schiller

Governor Pete Wilson

SolutionsClaire Calandra

Director Jacob LewGeorge RuppHoward Safir

Herbert H. Tate

Corporate Governance Independent Directors

Financial Information

IDT CorporationJ. Warren Blaker

Senator Rudy BoschwitzSaul K. Fenster

Governor James S. GilmoreThe Honorable Jack Kemp

Michael J. LevittAdmiral William OwensGovernor William Weld

45

J. Warren Blaker

Senator Rudy Boschwitz

Saul K. Fenster

Governor James S. Gilmore

The Honorable Jack Kemp

Michael J. Levitt

Admiral William Owens

Governor William Weld

Professor, Fairleigh Dickinson UniversityFormer CEO of University Optical Products, Inc.

Chairman of the Advisory Committee of the Center for Global Food IssuesFormer U.S. Senator

President of NJ Institute of Technology

Partner at Kelley Drye and Warren LLP, practicing homeland security, corporate and technology law Sixty-eighth Governor of the Commonwealth of Virginia

Former 9-term U.S. Congressman and former Secretary of Housing & Urban Development

Chairman of Ilios Capital LLCFormer partner, Hicks,Muse, Tate & Furst, Inc.Former Deputy Head of Investment Banking, Smith Barney

Vice Chairman and Co-Chief Executive Officer of Teledisic LLCFormer Vice Chairman of the Joint Chiefs of Staff

Principal, Leeds Weld & Co. Former Governor of Massachusetts

Independent Directors

Corporate Governance IDT Corp.

Financial Information

46

Chairman and CEO of The Cohen GroupFormer Secretary of Defense and former 3-term U.S. Senator

Writer on Economics and PoliticsFormer External Relations Advisor of the Inter-American Development BankFormer Costa Rican Minster of Foreign Trade

Financial AdvisorFormer Vice President and Treasurer of Mars, Inc.

Secretary William Cohen

Muni Figueres

Vito Spitaleri

Corporate Governance IDT Telecom

Independent Directors

Financial Information

47

Claire Calandra

Director Jacob Lew

George Rupp

Howard Safir

Herbert H. Tate

President of the CLC GroupFormer executive with TyCom Ltd and AT&T

Executive Vice President and Professor of Public Administration at New York UniversityFormer Director of the U.S. Office of Management and Budget, and also a former member of the National Security Council

President of the International Rescue CommitteePrior President of Columbia and Rice Universities

Chairman and CEO of SafirRosettiFormer New York City Police Commissioner

Professor, N.J. Institute of TechnologyFormer President of the N.J. Board of Public Utilities

Financial Information

Corporate Governance IDT Solutions Division

Independent Directors

48

Merv Adelson

Rev. Eric Cosentino

Rabbi Irwin Katsof

Roberto Muller

Harvey Schiller

Governor Pete Wilson

Co-founder of Lorimar Telepictures, where he served as Chairman and CEO

Rector of the Episcopal Church of the Divine Love in Montrose, New York

Executive Director of the Jerusalem Fund of Aish HaTorahCo-author with Larry King of Powerful Prayers and How to Get Your Prayers Answered

President and CEO of The Muller Sports GroupFormer president of InternationalFounder of PONY Sports and Leisure

Chairman and CEO of YankeeNets

Former Governor of the State of CaliforniaFormer U.S. SenatorFormer Mayor of San Diego

Financial Information

Corporate Governance Media & Entertainment

Independent Directors

49

Stephen Goldsmith

Jesse King

Harry McPherson

James R. Mellor

Marc J. Oppenheimer

Dan Schulman

Dr. Michael Weiss

Tony Werner

Special Advisor to President Bush. Also Sr. VP for e-Government and Strategic Initiatives with Affiliated Computer Services, Faculty Director for innovations in American Government at Harvard's Kennedy School of Government, and Chairman the Corporation for National and Community Service.

COO, Daniels Fund. Former Operations Manager for Rockefeller Foundation's Next Generation Leadership Program and The Philanthropy Workshop.

Chairman, Verner, Liipfert, Bernhard, McPherson and Hand. Former Chairman of the U.S. International Cultural and Trade Center Commission.

Chairman, USEC, Inc. Former Chairman and CEO of General Dynamics.

President and CEO of Crystallex International Corporation. Former Director of Trade and Merchant Banking with Midlantic National Bank.

CEO, Virgin Mobile USA, LLC. Former President and COO of priceline.com. Former President of the AT&T Consumer Markets Division and of AT&T WorldNet Service.

Associate Clinical Professor of Ophthalmology at Columbia College of Physicians and Surgeons and Director of Uveitis Service at the Edward S. Harkness Eye Institute.

Chief Technology Officer, Liberty Media. Former CEO of Aurora Networks & CTO for AT&T broadband.

Corporate Governance Net2Phone

Independent Directors

Financial Information