IDTPowering

What’s Next in Communicatio

ns

IDTPowering

What’s Next in Communicatio

ns 01 May 200001 May 2000

Forward-looking statements in this presentation involve a number of risks and uncertainties which are detailed in IDT’s SEC filings. Actual results may differ materially from the Company’s projections.

IDT is…IDT is…

• An $800 million semiconductor solutions provider to leading-edge communications companies

• Growing at 40% per year

• Generating greater than 70% of revenues from high-growth communications customers

• Delivering more than 50% gross margin

• Demonstrating strong overall profitability — over 20% pre-tax and growing

Solutions for the Communications MarketSolutions for the Communications Market

High-SpeedSRAMs

High-Performance

Logic&

Clock Management

Communications ICs

Comm MemoriesComm ASSPs

Strong Communications Market Growth for IDTStrong Communications Market Growth for IDT

Communications

Personal Computing

SANs/Other Peripherals

Miscellaneous 36%36%

34%34%

17%17%13%13%

Fiscal 1996

71%71%8%8%

8%8%13%13%

Fiscal 2000

IDT Communications ICsIDT Communications ICs

• More than 40% of revenue from Communications ICs

• World leader in FIFOs and dualports with 70% market share growing at 40% per year

• Communications ASSPs growing at 100% per year

• Multiple families of high-margin, proprietary products

Key Communications CustomersKey Communications Customers

• Alcatel• Cabletron• Cisco• EMC• Ericsson• Fujitsu

Emerging Companies• Copper Mountain• Tollbridge• Extreme Networks• Foundry Networks

• Lucent• Motorola• NEC• Nokia• Nortel Networks• 3Com

• Orckit• Hauwei• Air Fiber

Where Are We Winning?Where Are We Winning?

H igh-end routers and line cards

LAN switches

WAN access switches

XDSL network termination

W ireless base stations

Voice-over-IP gateways

Ho

t C

om

mu

nic

atio

ns

Set-top boxes

D igital video

S torage area networks Hi-

Per

f A

pp

s

Communications and Networking Design UpdateCommunications and Networking Design Update

SuperSync II FIFOs

Cisco

Ericsson

Intel

Lucent

MTK

Alcatel

Switch

Base station

Gigabit switch

Terabit router

3rd gen base station

Switch

Communications and Networking Design UpdateCommunications and Networking Design Update

x36 Sync Dual-Ports

Ericsson

Nokia

Nokia

Nortel

NEC

Fujitsu

Foundry

3rd gen base station

3rd gen base station

IP router

Switch

WAN switch

WAN switch

Gigabit switch

Communications and Networking Design UpdateCommunications and Networking Design Update

Communications ASSPsNortel

Nortel

Air Fiber

Nortel

Siemens

Orckit

3Com

Ramp Networks

SwitchStar

PHY

SwitchStar

PHY

PHY

PHY

SAR

SAR

3G base station

3G base station

Wireless ATM

Switch

DSLAM

DSLAM

ADSL modem

ADSL modem

Newly Introduced ProductsNewly Introduced Products

Product Applications

TSI Switch Family VoIP gateways3rd gen base stations

Gigabit SERDES Serial backplanesGigabit Ethernet links

x72 SuperSync II FIFOs Gigabit and terabit switchesGigabit and terabit routers

9-Mbit ZBT Gigabit and terabit switchesGigabit and terabit routers

Growth Rate(CAGR 2000-2003)

25%

31%

35%

86%

250%

High-Growth MarketsHigh-Growth Markets

Shipments(2000E)

2.1 Million Units

34 Million Ports

250 million Phones

900,000 Units

400,000 Ports

Sources: Dataquest, In-Stat, Semico, IDT

Markets

Routers

100 Mbit Switches

Base Stations

ADSL

VoIP Gateways

Product LeadershipProduct Leadership

#1 Share in FIFOs

#1 Share in ZBT SRAM

#2 Share in high-performance logic

#1 Share in 25/51 Mbps PHYs

#1 Share in multi-ports

High-End RouterLAN Interface Line CardHigh-End RouterLAN Interface Line Card

8 x10 / 100Ethernet

MACs

CPURC3041

PacketDual-Port70V3389

FIFO72V263

ALVCLogic

1 GbpsSERDES

HeaderFIFO

72V36110

RoutingTable

4-Mbit ZBT71V3558

L3Lookup

ASIC

SystemControl

ASICDRAM

3rd Generation Base Station3rd Generation Base Station

SRAM

DSP

DSP FIFO

AIRI / F

TransSerDesor

PHY

DualportMemory

VoiceCodec

DualportMemory

Rec

FIFO

SRAM

MuxDemux

IntegratedProcessor

SerialBackplane

ADSL Access Switch ADSL Access Switch

HeaderTranslate77V012

155PHY

SRAM64K x 3271V633

IntegratedCPU SwitchStar

Controller77V500

DPI to U277V011

DPI to U277V011

SwitchStarData PathMemory77V400

PHY

PHY

PHY

PHY

PHY

PHY

PHY

PHY

77V1254

ADSL

Our strategy is paying off

Revenue from OperationsRevenue from Operations

$139$154

$165$177

$198$217*

$100

$150

$200

FQ499 FQ100 FQ200 FQ300 FQ400 FQ101*

Core revenue x86 revenue

$ Millions

* Estimated Analysts’ consensus

Earnings Per Share (Excluding Non-operating Items)Earnings Per Share (Excluding Non-operating Items)

$0.04$0.09

$0.18

$0.28

$0.41 $0.44*

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

FQ499 FQ100 FQ200 FQ300 FQ400 FQ101*

* Estimated Analysts’ consensus — tax rate changes from 5% to 20%

Increased Manufacturing CapacityIncreased Manufacturing Capacity

3.65 5.5

6.3 6.3

8.9 9.7

13.3

0

2

4

6

8

10

12

14

FY95 FY96 FY97 FY98 FY99 FY00 FY01* Full

Millions Square Inches Fully Facilitized

0.18-micron capability provides additional dieoutput without additional wafer capacity

* Forecasted

IDT is Positioned for SuccessIDT is Positioned for Success

World leader in the integration of high performance memory and logic for high-bandwidth applications

E ngaged with the existing and emerging communications leaders

Accelerating growth in revenue — $1B runrate by fiscal Q401

Opportunity for increasing earnings and valuation

S trong financial performance — revenue and earnings

E xcellent new product acceptance and solid roadmaps