IDT Europe and Safeway Stores Sign Deal to Offer Free Promotional Phone Cards Submitted By: Nelson Bostock Unlimited Friday, 25 October 2002

IDT Europe and Safeway Stores sign deal to offer free promotional phone cards Submitted by: Nelson Bostock Unlimited Friday, 25 October 2002

Specially branded Safeway cards offer international calls at national rates London UK, 15 October 2002 – IDT Europe, the UK’s leading provider of pre-paid phone cards and supermarket giant Safeway, will offer free phone cards to shoppers at more than 400 Safeway stores across the UK for a limited time. IDT Europe is a division of IDT Corporation (NYSE: IDT.B, IDT), a leading, multinational carrier and telephone company. As part of the promotion, IDT Europe will supply 400,000 specially branded pre-paid phone cards that will be distributed free to UK consumers shopping at participating Safeway supermarkets from now until the end of November. “Calling friends and family in other countries has never been easier or more economical,” said Marc Bodner, MD of IDT Europe. “We’re hoping that even more consumers will realise the benefits -- ease-of-use, quality and the huge cost-savings that can be enjoyed when making international calls with an IDT calling card. The aim of this promotion is to put IDT’s phone cards into the hands of Safeway shoppers to make them aware of the immediate benefits and so they become frequent users.” IDT Europe will supply Safeway with promotional cards that will be specially branded versions of IDT Europe’s UnityTM phone card. The Safeway branded card will differ from the traditional pre-paid card in that it allows users to make international calls and just be billed by their local provider at the cost of the national call rate. As part of the promotion, recipients will also be able to purchase the traditional Unity card at a 10% discount at any of the participating Safeway stores. Matt Bullas, telecoms category manager for Safeway Stores Ltd, said, “Safeway has a reputation for selling competitively-priced, quality products and therefore it was important that we used an established market leader, like IDT Europe, that can match this quality of service for our valued customers. In the past we have had tremendous success with promotional goods and money-off campaigns and we look forward to realising the same effect with the Safeway Unity card.” IDT’s traditional Unity card, the UK’s foremost pre-paid phone card, is already available in Safeway stores and features market-leading rates and quality to destinations around the world. About IDT Europe IDT Europe, a division of IDT Telecom, concentrates its expertise in two main product categories: retail calling cards (through IDT Phonecards Ireland Limited) and wholesale carrier services. Formed in 1998, IDT Europe has already established itself as one of the leading prepaid card operators in Europe, offering more than 40 different phone cards in over 100,000 retail outlets. IDT Europe's core retail and wholesale strengths have enabled the company to maintain a broad customer base while significantly

Page 1 enhancing gross margins and profitability. By establishing long-term agreements with the major global carriers to interconnect IDT's facilities with those of their foreign partners in Europe, Latin America, Africa and Asia, IDT Europe terminates traffic to over 180 countries. IDT Europe is headquartered in London and has offices and/or Points of Presence (POPs) in Ireland, the Netherlands, Belgium, France, Germany, Italy, Spain, and Scandinavia. For more information please go to http://www.idteurope.com For media enquiries, please contact: Sophia Uddin IDT Europe [email protected] +44 (0)207 549 6000 [email protected] Sarah Griffiths / Claire Smither Nelson Bostock Tel: +44 (0)20 7229 4400 About Safeway plc. Safeway plc is one of the leading grocery retailers in the UK, with annual sales of £8.7 billion, over 92,000 employees and nearly 480 stores nationwide. Stores cover the UK from Lerwick in the Shetland Isles to Jersey and from Enniskillen in Northern Ireland to Lowestoft in East Anglia. This wide spread of stores is unmatched by any of the other major UK food retailers. Safeway wish to be the first choice retailer for those customers who have the opportunity to shop locally in one of the many stores. To deliver this goal they began to implement a new commercial strategy for the business in Autumn 1999. This new strategy is transforming Safeway - attracting over a million new customers in its first year, driving sustained increases in sales and delivering 45% growth in profits in the two years to March 2002. IDT Corporation IDT, through its IDT Telecom subsidiary, is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT Telecom provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media own 95% and 5 % of IDT Telecom, respectively. IDT Media is the IDT subsidiary principally responsible for the Company's initiatives in media, new video technologies and print media.

Page 2 Through its various subsidiaries, IDT has interests in several telecom, Internet-related and media companies. IDT acquired Winstar Communications in December, 2001. IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT.B and IDT. As of June 10, 2002, there were 53.4 million shares of Class B common stock (IDT.B) outstanding, and 24.9 million shares of common stock (IDT). Of these, 4.0 million shares of Class B common stock and 5.4 million shares of common stock were held by units of IDT Corporation. Except for historical information, all of the expectations and Assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward-looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2001 and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward-looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward-looking statements.

Page 3

Distributed via Press Release Wire (https://pressreleases.responsesource.com/) on behalf of Nelson Bostock Unlimited