MASTER

Slide1 : Howard Jonas, Chairman Jim Courter, Chief Executive Officer Ira Greenstein, President Steve Brown, Chief Financial Officer Marcelo Fischer, Chief Accounting Officer IDT Corporation December 2003 Confidential


Summary Market Information : Market Cap: $1.6 Billion Fiscal 2003 Revenues: $1.8 Billion Cash Balance: $1 Billion Exchange: NYSE Headquarters: Newark, NJ Employees: 3,800 Offices: 17 Countries On 5 Continents State Of Incorporation: Delaware Equity Research: Wm Smith Securities, Janco Partners Attorneys: McDermott Will & Emery Auditors: Ernst & Young Board Representation: 8 Outside Directors, 6 Inside Directors Tickers: IDT IDT.C Class A Price As Of 12/12/03: $20.00 $19.25 Not Traded 52 Week High: $20.50 $19.50 52 Week Low: $13.75 $13.70 Shares Outstanding: 51.2 Mil. 22.1 Mil. 9.8 Mil. 83.1 Mil Total As Of 10/20/03 Summary Market Information


IDT Revenue Run Rate Q4 2003 : IDT Revenue Run Rate Q4 2003 Entertainment (94% owned) $48 million Digital Production Solutions (90% owned) Film Roman (82% owned) Vanguard Anim. (12.5% owned) OTV Liberty Broadcasting WMET CTM Brochure Display Net2Phone Global Services Net2Phone Cable Telephony Telecom (95% owned) $1.8 billion Net2Phone (controlled, 22% owned) $76 million Consumer Phone 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 Revenue $2.1 billion MainFrame Entertainment (62% owned) Anchor Bay Ent. (100% owned upon closing)


Slide4 : 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 History : IDT History July 1997 Begin Marketing Prepaid Cards July 1996 Launch Net2Phone October 2001 Reacquire NTOP Control December 2001 Acquire Winstar Assets March 1996 IPO February 2001 List on NYSE Acquire PT1 August 2000 Sell NTOP Shares To AT&T July 1999 Net2Phone IPO April 1995 Introduce Carrier Service


Slide6 : IDT Telecom


Overview Telecom Fast Facts : 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)


Telecom Major Services : 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


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


Contribution Of Telecom Services : Calling Cards $1,080.0 $240.0 292.0 66.2 7.9% Wholesale Carrier 405.5 45.6 125.6 13.8 50.5% Consumer Phone Services 152.0 85.8 37.2 19.4 4.4% Callback 1.3 0.7 0.1 – – Total $1,638.7 $372.2 455.0 99.6 16.6% Contribution Of Telecom Services 22.2% 11.2% 56.5% 59.3% 22.7% $ Millions Fiscal 2003 Revenue Gross Profits Q1 2004 Revenue Gross Profits 22.7% 11.0% 52.2% 57.4% 21.9% Revenue Growth


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


Slide12 : IDT Solutions Services provided by Winstar Communications L.L.C., an IDT Company


The Winstar Network : 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


Service Offerings : 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


IDT Solutions Unique Value Proposition : 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


IDT Solutions Acquisition : IDT Solutions Acquisition December 19, 2001, – April 17, 2002 Cash $ 30.0 million IDT Class B Shares 25.8 million Purchase $ 55.8 million Working Capital* 150.0 million Total $205.8 million IDT Solutions *Amount funded as of July 2003


22 Cities Of IDT Solutions : Atlanta Baltimore Boston Chicago* Cincinnati Dallas/Ft. Worth* Denver Detroit Houston Los Angeles* Miami Minneapolis/St Paul New York City* Newark (NJ) Orange County (CA) Philadelphia Phoenix San Francisco Seattle Stamford (CT) Tampa Washington DC* 22 Cities Of IDT Solutions IDT Solutions *Top 5 cities (account for 45% of on-net revenue) 17 Offices 12,500 Customer accounts


IDT Solutions Burn Reduction Plan : 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


Leadership In … : 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


Global Animation Studios : 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


Vanguard Films, Inc. : 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


Slide22 : IDT Entertainment


IDT Entertainment Acquisitions : IDT Entertainment Acquisitions IDT Entertainment


Executive Bios : 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


Innovative, Technologically  Advanced Communications Platforms : Innovative, Technologically Advanced Communications Platforms IDT Media


Liberty Broadcasting Systems : 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


Delivering Video To The Office Desktop : 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


CTM Achieves Record Sales / EBITDA : 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


Communication Without Borders : Communication Without Borders


Net2Phone Key Points : 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 Voice Over IP Offerings : 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


Cable Market Opportunity : 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


Slide33 : 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.


Slide34 : Services provided by Winstar Communications L.L.C., an IDT Company


Consolidated Balance Sheet : Consolidated Balance Sheet


Consolidated Income Statement : Consolidated Income Statement


Slide37 : Consolidated Quarterly Income Statement


Slide38 : Financial Information Telecom Quarterly Operating Statement


Slide39 : Financial Information IDT Solutions Quarterly Operating Statement


Slide40 : Financial Information Media Quarterly Operating Statement


Slide41 : Entertainment Operating Statement


Slide42 : Corporate Quarterly Operating Statement


Slide43 : Net2Phone Quarterly Operating Statement


Slide44 : Telecom Secretary William Cohen Muni Figueres Vito Spitaleri Net2Phone Stephen Goldsmith Jesse King Harry McPherson James R. Mellor Marc J. Openheimer Dan Schulman Dr. Michael Weiss Tony Werner Media & Entertainment Merv Adelson Rev. Eric Cosentino Rabbi Irwin Katsof Roberto Muller Harvey Schiller Governor Pete Wilson Solutions Claire Calandra Director Jacob Lew George Rupp Howard Safir Herbert H. Tate Corporate Governance Independent Directors IDT Corporation 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


Slide45 : 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 University Former CEO of University Optical Products, Inc. Chairman of the Advisory Committee of the Center for Global Food Issues Former 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 LLC Former partner, Hicks,Muse, Tate & Furst, Inc. Former Deputy Head of Investment Banking, Smith Barney Vice Chairman and Co-Chief Executive Officer of Teledisic LLC Former Vice Chairman of the Joint Chiefs of Staff Principal, Leeds Weld & Co. Former Governor of Massachusetts Independent Directors Corporate Governance IDT Corp.


Slide46 : Chairman and CEO of The Cohen Group Former Secretary of Defense and former 3-term U.S. Senator Writer on Economics and Politics Former External Relations Advisor of the Inter-American Development Bank Former Costa Rican Minster of Foreign Trade Financial Advisor Former Vice President and Treasurer of Mars, Inc. Secretary William Cohen Muni Figueres Vito Spitaleri Corporate Governance IDT Telecom Independent Directors


Slide47 : Claire Calandra Director Jacob Lew George Rupp Howard Safir Herbert H. Tate President of the CLC Group Former executive with TyCom Ltd and AT&T Executive Vice President and Professor of Public Administration at New York University Former 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 Committee Prior President of Columbia and Rice Universities Chairman and CEO of SafirRosetti Former New York City Police Commissioner Professor, N.J. Institute of Technology Former President of the N.J. Board of Public Utilities Financial Information Corporate Governance IDT Solutions Division Independent Directors


Slide48 : 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 HaTorah Co-author with Larry King of Powerful Prayers and How to Get Your Prayers Answered President and CEO of The Muller Sports Group Former president of International Founder of PONY Sports and Leisure Chairman and CEO of YankeeNets Former Governor of the State of California Former U.S. Senator Former Mayor of San Diego Financial Information Corporate Governance Media & Entertainment Independent Directors


Slide49 : 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