8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 9, 2007

IDT CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-16371	22-3415036
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

520 Broad Street Newark, New Jersey	07102
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (973) 438-1000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01Regulation FD Disclosure.

On December 28, 2006, IDT Corporation (the “Registrant”) issued a news release in which it announced that it would host an Investor Day in Newark, N.J on January 17, 2007. The Registrant indicated that the presentation would be accessible via audio webcast by visiting the Registrant’s website at www.idt.net, or by using the hyperlink: http://www.vcall.com/IC/CEPage.asp?ID=112437, and that slide presentations for the event will be posted on the Presentations tab of the Investor Relations section of the Registrant’s website. Information discussed at the Investor Day, including ceratin earnings guidance, financial results and current and contemplated ventures of the Regsitrant, are available through an archived webcast by clicking on Investor Relations at www.idt.net and going to Presentations. A copy of the December 28 news release is being furnished as Exhibit 99.1 to this report and copies of the slides presented at the Investor Day are being furnished as Exhibit 99.2 to this report. Both Exhibit 99.1 and Exhibit 99.2 are incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Document
Exhibit 99.1	News Release dated December 28, 2006.
Exhibit 99.2	Slides presented at Registrant’s Investor Day on January 17, 2007.

1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

IDT CORPORATION
By:	/s/  James A. Courter
	Name: James A. Courter
	Title: Chief Executive Officer

Dated: January 17, 2007

2

EXHIBIT INDEX

Exhibit Number	Description
99.1	News Release dated December 28, 2006.
99.2	Slides presented at Registrant’s Investor Day on January 17, 2007.

3

EX-99.1

IDT Corporation to Host Investor Day January 17^th,

At Company Headquarters in Newark, N.J.

NEWARK, NJ- December 28, 2006- IDT Corporation (NYSE: IDT, IDT.C) announced today that it will host an Investor Day on Wednesday, January 17th, 2007. The event will take place at the Company’s headquarters in Newark, N.J., beginning 9:30 AM (EST) and ending approximately 1 PM, and will feature presentations by senior executives.

Due to space limitations, registration is required in advance of the event. Analysts and Institutional Investors wishing to attend should submit requests to attend to: investorday@corp.idt.net.

We are pleased to also offer audio access to the event via webcast. The webcast may be accessed by visiting the IDT Corporation website at www.idt.net, or by using the hyperlink: http://www.vcall.com/IC/CEPage.asp?ID=112437. You will need Windows Media software to listen to the streaming feed. Please allow at least 15 minutes to download any necessary audio software prior to the call. Slide presentations for the event will also be posted on the Presentations tab of the Investor Relations section of the IDT Corporation website.

We look forward to your participation in this event.

About IDT

IDT Corporation is an innovative and opportunity seeking multinational company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. IDT’s Capital division incubates newer businesses, and the company’s Spectrum subsidiary holds its spectrum license assets. IDT Telecom provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards, consumer local, long distance, and wireless phone services, and wholesale carrier services. Under the Net2Phone brand name, the company also provides a range of voice over Internet protocol (VoIP) communications services. IDT Capital’s operations include an Energy Services Company (ESCO) in New York State, ethnic food distribution, brochure distribution and other initiatives. IDT Corporation's Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.

Contact:

Investor Relations:

Yossi Cohn

973-438-3858

Corporate Communications:

Gil Nielsen

973-438-3553

EX-99.2

IDT
Corporation



Investor Day
January 17, 2007
Newark, NJ

1

IDT INVESTOR DAY

8:30Registration

9:30Company Overview

The Future of IDT- Howard Jonas

IDT Corporate Q&A

11:00Break

IDT Telecom Overview

IDT Telecom Q&A

IDT Capital Overview

IDT Capital Q&A

Concluding Remarks

1:15Lunch

Agenda

2

IDT INVESTOR DAY

IDT Management Participants

Howard JonasChairman of the Board

Jim CourterChief Executive Officer

Ira GreensteinPresident

Motti LichtensteinChief Operating Officer

Marcelo FischerChief Financial Officer

Yossi CohnDirector Investor Relations

CORPORATE TEAM

3

Yona KatzChief Executive Officer

Kathleen TimkoChief Operating Officer

Norman RosenbergChief Financial Officer

Avi LazarPresident, Global Wholesale and

International Emerging Businesses

Michael LeibovPresident, Union Telecard Alliance

Esti WittySVP, Consumer Phone Services

Jose ColagrossiGeneral Manager, International Channel
Sales

IDT Management Participants

TELECOM TEAM

IDT INVESTOR DAY

4

Steve Brown   Co-Chief Executive Officer

David GreenblattCo-Chief Executive Officer

Geoff RochwargerPresident

Yaacov DiorCEO, IDT Carmel

Morris BergerCEO, IDT Internet Mobile

Barry LudenCEO, IDT Local Media

IDT Management Participants

CAPITAL TEAM

IDT INVESTOR DAY

5

IDT
Corporation



Jim Courter
Chief Executive Officer

6

This presentation highlights certain information about the Company, its businesses and its financial
results and condition.  It is not complete and should be considered in conjunction with the more
fulsome disclosures regarding the Company and its operations in the reports the Company files with
the SEC, including the audited and un-audited financial statements included with those reports.

This presentation may contain forward-looking statements that are either general or specific in
nature.  These statements are subject to risks and uncertainties that may cause actual results to
differ materially from those we anticipate.  These risks and uncertainties include, but are not limited
to the specific risks or uncertainties discussed in our reports that we file with the SEC.  

We assume no obligation to update any forward-looking statements in this presentation or to update
any of the factors that may cause actual results to differ materially from those forecasted.  All
information is given only as of the date indicated and should not be interpreted to imply anything
about the comparable information as of any other date.  We do not undertake any duty to update
that information or indicate whether trends have continued or not continued other than in the filings
we make with the SEC.

7

IDT
Corporation



Motti Lichtenstein
Chief Operating Officer

8

About IDT

IDT OVERVIEW

  Management and Employees

  Dedicated professional team with operational excellence and financial discipline

  Operating Businesses and Transaction

  IDT has continually innovated and built new operating businesses

  IDT will sell operating businesses for the correct price

Telecom

  Largest Ethnic Prepaid Calling Calling Card Company

  Selling approximately 280 million cards a year

Leading Global International Voice Carrier

  Transporting over 20 billion minutes annually

Capital

Incubating, Building and Operating New Businesses

Spectrum

  Largest Holder of 39 GHz Licensed Spectrum in the U.S.

9

Company Overview

IDT OVERVIEW

IDT Corporate

IDT Telecom

Calling Cards/
Prepaid Products

IDT Capital

IDT Spectrum

Consumer Phone
Services - US

Wholesale Carrier
Services

Other Initiatives

IDT Energy

IDT Local Media

Ethnic Grocery
Brands

Consumer Phone
Services –
International Sales

IDT Carmel

IDT Internet &
Mobile

Other Hispanic
Initiatives

10

IDT OVERVIEW

EXISTING OPERATIONS

OPPORTUNISTICALLY GROW
BUSINESS

Sustainable Free Cash Flow

Efficient Operations

That Fit our Risk Adjusted ROI Criteria

Strategically Fit with Existing Infrastructure and Businesses

Utilize Balance Sheet

Strategic Goals

BUILD SHAREHOLDER
VALUE

11

  January 26, 2006- Remaining Winstar Operations & Liabilities Divested

  March 3, 2006- Corbina Sold

  March 13, 2006- Acquisition of Net2Phone Completed

  3Q06 - Overhead Reductions Initiated

  4Q05 – 4Q06-  Open Market Buyback of 6.4 mm Shares ($79 mm)

  4Q06 - IDT Energy surpassed 200,000 meters

  September 29, 2006- Sale of IDT Entertainment to Liberty Media Completed

  October 12, 2006- Sale of Toucan to Pipex Communications plc Completed

  1Q07- Organizational Integration of Net2Phone Completed

  January 9, 2007- JV with FFPM Formed; Debt Portfolios Purchased

Recent Events

IDT OVERVIEW

12

  Transactions

  Re-evaluation of all businesses

  Integration of businesses

  Efficiency in existing operations

Cost cutting initiated in 3Q06

Projected annual SG&A savings of
$35-40 million

  Launch of new IDT Capital businesses

IDT In Transition

  Stabilize IDT Telecom businesses

  Pursue expansion opportunities

  Deploy capital for future growth

IDT Capital

Technologies

  Explore strategic alternatives for
IDT Spectrum

FISCAL 2006

IDT OVERVIEW

FISCAL 2007

13

  Mature Telecom Businesses

-and-

  Many opportunities, with small amounts of
capital deployed to date:

Calling Card Expansion

International Telecom Expansion

IDT Energy

IDT Carmel

Ethnic Grocery Brands

IDT Local Media

IDT Internet Mobile

IDT Spectrum, etc.

IDT Portfolio in Transition

  Mature Telecom Businesses

-and-

  Focused deployment of capital to specific
businesses

  Continued innovation of new business ideas

  Retain opportunistic mindset to all
opportunities

TODAY

FUTURE

IDT OVERVIEW

14

IDT Portfolio – Plan for the Future

Operating
Businesses

IDT OVERVIEW

Efficient operations and generation of free
cash flow

Transaction

IDT will sell operating businesses for the
correct price

Growth

Concentrate on specific opportunities:

  Build upon existing infrastructure

   Leverage strength of IDT’s balance
sheet

  Consumer oriented

  Deregulating markets

  Fragmented/undercapitalized
businesses

15

IDT
Corporation



Marcelo Fischer
Chief Financial Officer

16

Capital Deployment

IDT OVERVIEW

  Goal

  Allocate capital to the highest returning opportunities companywide

  Financial Metrics

  Absolute hurdle rate – Risk-Free Rate

  Targeted base hurdle rate – 15% IRR (risk adjusted); 3 year timeframe

Investment Approach

  IDT has significant cash on hand

  IDT is comfortable waiting for the correct opportunities

  In the interim, earn absolute hurdle rate

17

IDT OVERVIEW

Revenue by Division

The IDT “Portfolio”

$ in millions

18

Total IDT Corporation

400

500

600

700

1Q 05

1Q 06

1Q 07

Total IDT Telecom

300

400

500

600

1Q 05

1Q 06

1Q 07

Total IDT Capital

30

60

90

1Q 05

1Q 06

1Q 07

Total IDT Entertainment

30

60

90

1Q 05

1Q 06

1Q 07

Total IDT Solutions

1

2

3

4

5

1Q 05

1Q 06

1Q 07

Equity Structure

CLASS A

CLASS B

CLASS C

3 Votes/ Share

1/10 Vote/ Share

1 Vote / Share

9.8 mm

56.7 mm

15.2 mm

  Howard Jonas, Chairman and Founder of IDT, controls 17.75 mm shares

  21% economic ownership

  63% voting control

Not Traded

IDT

IDT.C

  6.3 mm options outstanding

  $9.44 average strike price

Votes per Share

Shares Outstanding

Ticker (NYSE)

Information as of most recent filings

IDT OVERVIEW

19

Stock Buyback

  Fiscal 2005

  1.2 mm shares

  $16 mm

  Fiscal 2006

  5.2 mm shares

  $64 mm

  14.9 mm shares from Liberty Media in sale of IDT Entertainment

  Purchased 7.9 mm options held by employees

Remaining Buyback Authorization

  24.5 mm shares

  IDT will continue to be an opportunistic purchaser of its shares on the open market

IDT OVERVIEW

20

Cash per Share

As of October 31, 2006

Cash & Marketable Securities$808

Investments    52

Capital Lease Obligations  (47)

Severance Accrual  (11)

Regulatory Accrual (Telecom)  (51)

Working Capital Adjustment Accrual (Entertainment)  (20)

Net Cash $731

Shares Outstanding (undiluted)  81.7

Cash per Share: $8.95

Calculation excludes Mortgage Notes Payable and Offsetting Real Estate Assets

In millions

IDT OVERVIEW

21

Operating Cash Flow – 1Q07

Adjusted EBITDA^*

Telecom  $23

Capital      2

Solutions      -

Corporate  (14)

Total Adjusted EBITDA  $11

Capital Expenditures  (10)

Distributions to UTA Minority Partners    (4)
Interest, Taxes      1

Working Capital Changes (Telecom / Corporate)    (5)

Working Capital Changes (Capital / Solutions)  (12)

FCF Before Other Items($19)

Restructuring    (5)

Telecom Regulatory Payments    (8)

Free Cash Flow($32)

In millions

*Adjusted EBITDA, as calculated: Gross Profit – SG&A + Non-Cash Compensation

IDT OVERVIEW

22

IDT OVERVIEW

$ in millions

Adjusted EBITDA by Division

*Adjusted EBITDA, as calculated: Gross Profit – SG&A + Non-Cash Compensation

23

Total IDT Corporation

5

10

15

20

25

1Q 05

1Q 06

1Q 07

Total IDT Telecom

10

20

30

40

1Q 05

1Q 06

1Q 07

Total IDT Capital

-3

-2

-1

1

2

3

1Q 05

1Q 06

1Q 07

Total IDT Entertainment

2

4

6

8

10

1Q 05

1Q 06

1Q 07

Total IDT Solutions

-7

-6

-5

-4

-3

-2

-1

1Q 05

1Q 06

1Q 07

Total Corporate

-20

-15

-10

-5

1Q 05

1Q 06

1Q 07

The Future of IDT




Howard Jonas
Chairman of the Board

24

IDT Corporate




Question and Answer

25

IDT Telecom




Yona Katz
Chief Executive Officer

26

We will provide a full suite of high-quality, favorably-priced communications
products and services to retail and wholesale customers worldwide

We will be driven by innovation and we will embrace technology, in order to
improve our products, services, processes and interaction with our customers

We will expand our operations internationally, taking advantage of the
numerous attractive opportunities presented by a constantly changing,
deregulating worldwide Telecommunications industry

We will remain focused on our ultimate goal: maximizing profits, cash flow and
shareholder value

Our Mission

IDT TELECOM

27

Market maturity and aggressive, price-based competition have resulted in
revenue declines in several key business units

New products and geographic markets have yet to gain traction, providing little
incremental revenue to offset core decline

Top-line pressure has continued into 2Q07

Steps to reverse trend could lead to narrower gross margins

Fixing the model:

Overall and unit profitability rebounding off 2Q06 low

SG&A expense savings began to materialize in 1Q07

Net2Phone integration proceeding

Will yield cost savings and revenue growth opportunities

IDT TELECOM

Current Status

28

IDT TELECOM

Revenues

$ in millions

29

IDT TELECOM

Gross Margins

30

IDT TELECOM

SG&A Expenses

$ in millions

31

Includes impact of non-cash compensation.

IDT TELECOM

EBITDA

$ in millions

32

Prepaid Services

Calling cards (US/Europe/South America/Asia Pacific)

Wireless services (US/Europe)

Carrier Wholesale Services

Voice(US/Europe/South America/Asia Pacific/Africa)

Portfolio of Carrier Services

Consumer Phone Services

CPS (US)

Net2Phone reseller

Net2Phone Cable Telephony (NCT)  

IDT TELECOM

Businesses

33

Market leader in world’s #1 prepaid calling card market

TTM net revenues of approximately $1.0 billion

Distributed through Union Telecard Alliance

joint venture

Over 200,000 retail points of sale nationwide

Prepaid Solutions (PPS) unit distributes cards

      through some of the largest retailers in the U.S.

Walgreen’s, Sears, Kroger’s, BP, Exxon Mobil

and 7-11

IDT TELECOM

U.S. Calling Cards

34

U.S. Calling Cards

Distribution network still too heavily
concentrated on East Coast

Mature, commodity product

Threatened by wireless substitution

Competition intensifying, resulting
in market share losses

Raises question of gross margin
sustainability

Continued build-out of nationwide
distribution network

Enhanced in-market, on-the-street
presence

TuYo Mobile will allow IDT to serve
its calling card customers’ wireless
needs

Selectively lower rates, where such
moves can be effective

Position IDT as high-quality, reliable
consumer friendly provider of calling
cards

IDT TELECOM

RISKS

RESPONSES

35

Based on minutes-of-use, FY 2007 to date.

IDT TELECOM

U.S. Calling Cards- Geographic
Breakdown

36

IDT TELECOM

Prepaid Wireless- TuYo

37

Pan-European operation

Sales in 19 countries

Expanding to 21 by year-end 2007

Headquartered in London, England

and Dublin, Ireland

Offices in 13 countries

Selling nearly 300 different cards

through various distribution channels

Including > 100,000 (3^rd party) point-of-sale

      activation (POSA) terminals

IDT TELECOM

Europe Calling Cards

38

Market share losses to aggressive
competitors

“One-dimensional” distribution
network has narrow, limited reach

Changing customer needs require
new products

24 month investment plan launched

Allowing each market to cycle through
“investment” and “harvest” phases

Enabling electronic distribution

Development of point-of-sale activation
(POSA) terminal network

Adding prepaid MVNO and prepaid
debit card to product suite, and
enhancing feature set on traditional
card products

IDT TELECOM

Europe Calling Cards

RISKS

RESPONSES

39

Based on minutes-of-use, November 2006

IDT TELECOM

Europe Calling Cards- Geographic
Breakdown

40

Historically an arbitrage-driven minutes trading operation

Wholesale business has evolved into a multi-faceted carrier services business
over the past few years

Serving > 500 carrier customers worldwide

Generating over $500 million in annual revenues

Offers a wide variety of services, including:

Voice Services

VoIP Solutions

Mobile Solutions

Fixed/Mobile Convergence

Platform Services

Also responsible for provisioning and routing minutes for IDT’s calling card
businesses

IDT TELECOM

Carrier Wholesale

41

Traditionally narrow margin
business, with questionable
customer loyalty

Customers increasingly seeking IP
interconnection and related
services

Mobile carriers accounting for a
growing share of the global
wholesale market

Addition of higher-margin,
“contracted” revenues from strong
partners

Cable companies

Integration of NTOP network

Speeding up IDT network’s IP evolution

IDT now offers a full suite of
services targeting mobile carrier
customers, including:

Voice premium routing service

Inter-carrier SMS/MMS services

Premium messaging services

Mobile partnering service

IDT TELECOM

Carrier Wholesale

RISKS

RESPONSES

42

IDT TELECOM

Carrier Wholesale

$ in millions

43

Local and long distance (LD) voice services

Broadband Internet access

VoIP services

Satellite TV

Sold to residential and small business customers

Bundled local and LD customers: ~110,000 in 13 states (as of 12/31/06)

LD-only customers: ~235,000 nationwide (as of 12/31/06)

Recently launched IDT Passport

Internationally-targeted LD service

1Q07, launched two new services

IDT Voiceline

IDT Triple Play

IDT TELECOM

Consumer Phone Services (CPS)

44

With abolishment of UNE-P rules in
late 2004, costs have increased,
making it more difficult to compete
with incumbent carriers

Residential VoIP taking some
market share from traditional
wireline services

Local calling and domestic LD
markets provide little opportunity to
undercut competition

Base business in harvest mode,
steps have been taken to increase
profit/customer

Launched IDT Voiceline, powered
by Net2Phone

IDT Passport, targeting
international callers

provides significant cost savings vs.
incumbents, while allowing IDT to
generate healthy margins

IDT TELECOM

Consumer Phone Services (CPS)

RISKS

RESPONSES

45

Voiceline

Residential Internet Telephone Service

Unlimited local and long distance to US, Canada and Puerto Rico

$19.95 per month through 1/31/07

$5.00 less than Vonage

Free modem; no installation fee

Customer Pitch

Value

Significantly lower than traditional phone service or other VoIP competitors

Feature Rich

Reliability

30 day money back guarantee

Simple

Easy to install

Migrate existing number

IDT TELECOM

Consumer Phone Services (CPS)

46

IDT TELECOM

Consumer Phone Services (CPS)

47

IDT TELECOM

VoIP Customers

48

Use forward-ROI approach to determine investment potential of each business

existing and potential

Monetize businesses whose projected future cash flows fall below ROI
threshold

via sale or harvest

Take advantage of existing network capacity to add incrementally profitable
minutes

Allocate financial and human resources towards areas of highest growth and
return potential

IDT TELECOM

The Plan

49

January 2006: 843,594 total ports

January 2007: 844,338 total ports

IDT TELECOM

Global Telecom Network Capacity
Utilization

50

Global Network Topology

IDT TELECOM

IDT Telecom




Question and Answer

52

IDT Capital



David Greenblatt
Co-Chief Executive Officer

53

  The Business Development Incubator for IDT

  Provides a process-driven infrastructure for business development

  Assess, filter and process new opportunities for IDT

  With strict financial discipline and analysis

IDT Capital is Focused on Businesses that

  Are consumer-oriented

  Build upon IDT’s existing infrastructure and expertise

  Leverage the strength of IDT’s balance sheet

What is IDT Capital?

IDT CAPITAL

54

IDT Capital Incubation Process

IDT CAPITAL

  Model the Opportunity

  Research

  Identify key assumptions

  Design business model/project plan based on the assumptions

  Create a budget to test the opportunity

  Test the Model

  Create a small test of the target business (with internal IDT business, if applicable)

  Validate key assumptions in advance of significant capital deployment

  Build an Accretive Business

  Evolve successful “test” into a successful businesses

  Identify and hire the correct management team to bring the business to the next level

  Operate the Business

  Execute as an ongoing business operation

  Bring business to cash-flow positive

  Stand-Alone Business Unit

55

   IDT Energy

    Gas & Electric ESCO (Energy Service Company) in New York State

   IDT Carmel

Receivables Purchasing/Sales and Contingency Collections

   IDT Internet Mobile

  Zedge

     Content-focused business, at the intersection of Mobile platforms and the Internet

Capital Companies

IDT CAPITAL

56

  IDT Local Media

CTM Brochure Display, WMET Radio, New Media

  Local advertising opportunities

  Ethnic Grocery Brands

Vitarroz

  Branding and distribution of ethnic oriented grocery products

  IDT Global Services

Call Center and BPO (Business Process Outsourcing) Services

  IDT Hispanic

Ingles Para Hoy (ESL), Confie Seguros (Insurance), Sigo (Financial Services)

Hispanic consumer focused business initiatives

Capital Companies (continued)

IDT CAPITAL

57

IDT Energy

IDT CAPITAL

IDT Energy Vision

Create a large and robust base of retail energy customers

Low customer cost of acquisition

Low churn

Through multiple products and services

Focus on brand awareness

Up-sell additional energy oriented products and services

Continually enhance the customer experience

IDT Energy is the Energy Solution for its customers

IDT ENERGY

59

Deregulation

Non-utilities can resell natural gas and energy

In New York State, deregulation model offers resellers low risk programs

Purchase of receivables (POR)

Utility-provided billing

Dual meters (natural gas and electricity) available for resell

Dynamic supply management, with mature markets for buying energy

Other states have been slow to adopt the New York State model

Low Risk

Customer acquisition costs are recouped in first ~6 months

Receivables are guaranteed by the utilities

Customers are on a variable rate plan

Builds on Existing Infrastructure

Leverages IDT’s balance sheet

Letters of credit and guarantees provide IDT Energy with the flexibility to manage
scheduling and purchasing of energy and natural gas

IDT Energy’s ESCO Business

IDT ENERGY

60

New York State ESCO Market Landscape

New York State Total Meters:

  Natural Gas Meters:

  Upstate: 1,300,000

  Downstate: 1,400,000

  Electric Meters:

  Upstate: 2,500,000

  Downstate: 3,000,000

Market Breakdown of IDT Meters

  Upstate:  48,500

  Downstate:209,500

NY State meter count source: PSC website

IDT Energy meter count: as of Oct. 31, 2006

IDT Energy has Captured Over 20% of the New York
Residential ESCO Market

IDT ENERGY

61

Where are we now?

Regulatory-friendly regions within NY State

Upstate utility markets (NFG, NIMO/National Grid, RG&E)

Downstate utility markets (Central Hudson, Con Edison, Keyspan, Orange & Rockland)

How do we acquire customers?

Residential consumers

Door-to-door sales strategy

Refer-a-friend program

Web portal

Direct mail

Small businesses

Agent programs

Strategy forward

Grow New York footprint

Expand into new territories as they embrace a deregulated environment similar to NY State

Up-sell additional products and services to our existing ESCO customers

IDT Energy’s ESCO Business

IDT ENERGY

62

Competition/Marketing Risks

Competitors with deep pockets and large marketing budgets may enter the market

Current ESCO discount may prove insufficient to convince customers to switch from incumbent
providers

Comparison shopping as customers and the market matures

Political Risks

New York State pro-deregulation policy could reverse

Expansion beyond New York State requires favorable ESCO environment in other states

Enactment of a do-not-knock law could stop or restrict door-to-door marketing campaign

Commodity Risks

Volatility in pricing could force IDT Energy to pass along higher costs to our customers, which
could increase churn

Weather (warm or cool) can effect customer usage

High volume/Low margin business

General ESCO Risk Factors

IDT ENERGY

63

The Portal Opportunity

Internet offers the infrastructure for the world to shop for energy products and information

One-stop source for energy consumers

Comprehensive energy information to better understand the energy industry and how it impacts their home

IDT Energy Portal

Multiple web environments designed to cover the broad field of energy

ESCO customer acquisition - www.idtenergy.com

E-Commerce - www.shopidtenergy.com

Traditional products

Energy efficient products

Alternative energy products

Sale of our energy services

Information and expertise - idtenergy.wordpress.com

Social Community

Goal

Interact with our energy customers

Build a web brand

Act as a consolidator, private-labeling energy products

Develop and maintain a master database of energy users

Keep a finger on the pulse of energy consumers

IDT Energy Web Portal

IDT ENERGY

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www.IDTENERGY.com

Main E-Commerce Site

  New customer acquisition

  Online bill pay

  Customer Stories

  Energy Saving Tips

  Entry to blogs/social community

  Green Energy Information

  Education

  News

  Links to energy sites

Services

  Home Energy Audits

  Energy Insurance

  Weatherization

IDT ENERGY

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www.IDTENERGYSTORE.com

Traditional energy products

Batteries

Thermostats

Filters

Energy efficient products

Heat Pump

Humidistats

Propane Heaters

Alternative energy products

Hydropower

Power Panels

Solar Air Heating

IDT ENERGY

Additional products and
services continuously
added

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Key Economic Drivers

Number of Customers/Meters

Consumption

Price per Unit

Customer Acquisition Cost

Drives volume and revenues

Determined by weather patterns, drives
volume and revenues

Generated by capturing and managing costs
and rate setting

Together with customer turnover determines
the rate of return of the business

IDT ENERGY

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Number of customers needed to cover fixed SG&A:~120,000

Number of customers at end of 1Q07:~180,000

Number of energy meters at end of 1Q07:~258,000

Incremental Customer Acquisition

Acquisition cost payback period:~6 months

IRR assuming avg. customer life of 3 years: 152%

IDT Energy – Key Financials Metrics

IDT ENERGY

Based on current churn expectations

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IDT Energy – 1Q07 Financial Highlights

Revenue       $36

Direct Cost         28

Gross Profit         $8

Gross Margin      22%

Impact of Market Pricing Opportunities         $6

Normalized Gross Profit         $2

Gross Margin        6%

  Model assumes ~6% gross margin

In millions

IDT ENERGY

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IDT CAPITAL

Consumer Debt Growth

Consumer charged off debt growing at a ~14% CAGR since 1993

Charge-offs and delinquency rates have decreased over the last 5 years, with a slight
increase over the last two quarters

Creditors

Consolidation amongst the largest issuers of credit card debt has led to larger portfolios
offered for sale

Collection Industry

Industry generated $9.5B in revenue in 2004

Majority of revenue concentrated in top five contingency collection firms

Debt Buying

Top 15 debt buyers purchase approximately 80% of all debt that is sold in today’s market

Consumer debt portfolio pricing has increased in the past two years

20% average price increase for national portfolios

Consumer Debt Industry Overview

IDT CARMEL

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Consumer debt focus – opportunity still maturing  

Room for a big player - 95% of the players generate less than $8 mm annual revenue

International opportunities - international debt markets are opening up

$48B in face value was purchased in international markets in 2005

Brazil, Mexico and Poland

Maintain a strong balance sheet with minimal capital at risk

Purchased portfolios are a highly liquid asset; real market value that can be resold

Leverages existing IDT infrastructure & relationships

IDT as corporate parent lends legitimacy to the business

Relationships in the Telecom & Utilities industries lend themselves to the possibility of
purchasing and collecting debt from those sectors

IDT has presence in international markets with infrastructure in every major region

The “Fit” Into IDT Capital

IDT CARMEL

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Build strong management

Maintain balance between purchasing and contingency collections

Accelerate portfolio purchases

Strategic acquisitions - niches, along with management expertise

Maintain balance between collecting purchased debt in-house and through an
established outsourcing collection network

Strategy For Growth

IDT CARMEL

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Portfolio Pricing

Margins can be impacted as excess liquidity and growth pressures may lead to aggressive
portfolio purchasing, causing portfolio prices to increase

Availability of Portfolios

Purchase of more lucrative portfolios is often relationship driven

Economic Environment

Employment and general economic conditions could alter consumer’s ability to repay debt

Execution

Inefficient collection process can diminish liquidation rates and increase collection costs

Debt purchasing analytics must be strong to ensure profitability

Legal & Legislative

Industry heavily regulated at both the Federal and State levels

Risk Factors

IDT CARMEL

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First Half Fiscal 2005 - Launched IDT Carmel

June 2006 - Acquired Big Ten Capital Management, a debt purchasing company
located in Minnesota

FY 2006 - Trained and built collection staff in Minnesota and Israel

~120 employees today in Minnesota and Israel, 75 collectors

FY 2006 - Executed many small and medium debt portfolio purchases and sales

Acquired Big Ten with ~50 portfolios

Purchased additional face value of ~$250 mm, at a cost of ~$13 mm (1Q07: $6 mm)

Flips and resales generated proceeds of ~$5mm (1Q07: $4 mm)

IDT Carmel - Timeline

IDT CARMEL

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January 2007 -  Formed joint venture with First Financial Portfolio Management
(FFPM)

JV to purchase fresh credit card debt from a major financial institution

Forward-flow portfolio for a total of twelve months

Total over twelve months will range from $45 mm to $121 mm

FFPM is a debt purchasing/collections company with over 30 years of
management experience

FFPM is managing the JV, subject to Carmel’s approval of major decisions

Purchasing fresh debt

No post charge off collection attempts

Fresh forward-flow debt is infrequent in the debt purchasing market, as creditors generally
first outsource such debt for collection

Joint Venture Overview

IDT CARMEL

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IDT Internet Mobile

IDT CAPITAL

Consumer

Attractive product to build a brand identity

Early stages

First mover advantage

Zedge is the largest Internet Mobile portal today

~3.7 million users

~500,000 pieces of content

Minimal Risk

Small acquisition price, and minimal investment necessary for further build out

Build on existing infrastructure and expertise

IDT Entertainment experience in content

Net2Phone technological expertise

Business Characteristics - IDT’s Opportunity

IDT INTERNET MOBILE

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Exploding demand for content on mobile devices

Driven by mobile phone penetration, and wireless broadband service

Mobile content market is presently PC based

Load content from PC to mobile device

Nascent space

No incumbent

Zedge is presently the largest portal

User generated content

Growing popularity, similar to MySpace, YouTube, Flickr, etc.

Alternative to the ‘Walled Gardens’ of standard mobile operators and content providers

Mobile community sites

Will link users to the web, and to other users on their mobile phones

Commerce platforms

Affiliate programs have emerged  which empower web sites to sell content for mobile phones

Industry Overview

IDT INTERNET MOBILE

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Global destination

Users are global

~11% US and UK based

Rapidly adding users

Zedge has acquired over 3.7 million registered users in 2 years

Adding 165,000 registered users per month

Content leader

~500,000 unique pieces of mobile content

Adding ~45,000 pieces per month

Broad based approach

We also own a US Latino social community – Mimun2.com

IDT Internet Mobile - Today

IDT INTERNET MOBILE

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Competition

Many others are making significant investments in the mobile community
and content aggregation markets

Low barriers to entry

Revenue Model

Other than ringtones, mobile content has yet to become a significant
source of revenues in the US market

Risk Factors

IDT INTERNET MOBILE

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User Forums

>500,000 posts

Mobile Applications

Screensavers

Wallpapers

User Generated Content

~500,00 pieces

User Profiles

~100,000

The Zedge Experience

IDT INTERNET MOBILE

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Financial Overview

Purchase Price:$3.4 million

paid over 2 years

  Ownership Acquired:90%

  Planned Investment:$7 million

IDT INTERNET MOBILE

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Build the brand

Become a household name for the purpose of obtaining mobile content

Mobile portal for all types of products and services

Growth

User base

Increase user base through viral and targeted marketing

Goal is to have 5.5 million registered users by the end of FY07

Content

Increase content through users and toolsets

Goal is to have 650,000 pieces of content by the end of FY07

Revenue Model

Increase monthly page views

Increase traffic from monetizable locations (e.g. US/UK)

Sell CPM or sponsorship type advertising

Create premium areas for paying Zedge members

IDT Internet Mobile - Strategy

IDT INTERNET MOBILE

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IDT Capital



Question and Answer

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IDT
Corporation



Ira Greenstein
President

86

IDT
Corporation



Thank You for Attending

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