Exhibit 99.1

IDT to Revise Fiscal 2002 Results To Consolidate Net2Phone

• Changes to Have No Effect on Net Loss or Loss Per Share

• Quarterly Reports for Fiscal 2003 Already Consolidate Net2Phone

NEWARK, N.J.—July 21, 2003—IDT Corporation (NYSE: IDT, IDT.C) today announced that it plans to file with the Securities and Exchange Commission (“SEC”) an amendment to its Annual Report on Form 10-K for the fiscal year ended July 31, 2002 (“Fiscal 2002”) to revise the financial statements and other financial information included therein to consolidate the results of Net2Phone, Inc. (NASDAQ: NTOP) for the period beginning on October 23, 2001 through July 31, 2002. The Company will also file with the SEC amendments to its Quarterly Reports on Form 10-Q for the fiscal year ending July 31, 2003 (“Fiscal 2003”) to revise the Fiscal 2002 comparative information contained therein accordingly.

Until these revisions, the Company has accounted for its investment in Net2Phone during Fiscal 2002 using the equity method. The change in accounting for IDT’s investment in Net2Phone from the equity method to consolidation does not change the Company’s Net Loss or Loss Per Share for any previously reported period. The Company had previously begun consolidating Net2Phone’s results in its financial statements effective August 1, 2002.

The decision to amend these filings was made by the Company in the context of resolving the comments made by the staff of the SEC during its ordinary course review of the Company’s SEC filings. During the review process, the SEC staff had questioned the Company’s decision to continue using the equity method of accounting rather than consolidation to account for its interest in Net2Phone for the period beginning on October 23, 2001 through the end of Fiscal 2002.

As fully disclosed in the Company’s Fiscal 2002 Form 10-K and Fiscal 2003 Form 10-Q filings, on October 23, 2001, the Company and AT&T Corporation each contributed their minority stakes in Net2Phone into a newly formed limited liability company (the “LLC”), which was owned by the Company, AT&T and Liberty Media Corporation. After these contributions, the LLC held a majority voting stake in Net2Phone. Under the terms of the LLC’s operating agreement, the Company was granted the right to vote the LLC’s stake in Net2Phone. As a result, the Company effectively controlled the voting power of Net2Phone. However, the LLC’s operating agreement also granted each owner of the LLC the unilateral right, effective January 1, 2004, to cause the immediate liquidation of the LLC. Accordingly, the Company’s ability to control the voting power of Net2Phone would immediately terminate on January 1, 2004, the effective date of the liquidation rights.

Under the accounting rules that existed at the time of the formation of the LLC, an entity was prohibited from consolidating a controlled subsidiary if that control was likely to be temporary. Therefore, the Company believed that it should not consolidate Net2Phone during the approximately 26-month period (i.e., October 23, 2001 through December 31,

2003) that it would control Net2Phone (the “Control Period”), as the length of this period rendered its control temporary. Instead, the Company continued to account for its investment in Net2Phone through the end of Fiscal 2002 using the equity method.

In commenting on the Company’s SEC filings, and in subsequent conversations with the Company, members of the SEC staff contended that, although they were unaware of any clear accounting guidance as to the definition of “temporary” control, the Control Period of approximately 26 months was too long to render the Company’s control temporary. Accordingly, the staff believed that Net2Phone’s results should have been consolidated during the period from October 23, 2001 through the end of Fiscal 2002. Therefore, the Company is revising its results of that fiscal year to consolidate the results of Net2Phone for that period.

As of July 31, 2002, the Company’s effective economic interest in Net2Phone (through the LLC) was 19.2%. Accordingly, through the revised consolidation of the results of operations of Net2Phone for Fiscal 2002, the Company will record in minority interests the 80.8% of Net2Phone’s results attributable to the other shareholders of Net2Phone.

The Company had previously begun consolidating Net2Phone’s results in its financial statements effective August 1, 2002, when it adopted the new accounting rules that eliminated the prohibition from consolidation for a controlled subsidiary for which control is likely to be temporary.

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IDT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year ended July 31
	2000			2001			2002
							(Restated)
	(in thousands, except per share data)
Revenues	$	1,093,912		$	1,230,950		$	1,583,794
Costs and expenses:
Direct cost of revenues (exclusive of items shown below)		918,257			1,066,845			1,214,802
Selling, general and administrative		343,702			337,107			467,916
Depreciation and amortization		48,564			60,351			83,916
Restructuring, severance and impairment charges		—			199,357			257,501
Total costs and expenses		1,310,523			1,663,660			2,024,135
Loss from operations		(216,611	)		(432,710	)		(440,341	)
Interest income, net		7,231			52,768			24,174
Other income (expense):
Equity in loss of affiliates		(6,289	)		(75,066	)		(2,226	)
Gain on sales of subsidiary stock		350,344			1,037,726			—
Investment and other income (expense), net		258,218			164,762			(13,754	)
Income (loss) before minority interests, income taxes, extraordinary item and cumulative effect of accounting change		392,893			747,480			(432,147	)
Minority interests		59,336			(5,726	)		151,436
(Provision for) benefit from income taxes		(218,403	)		(209,395	)		124,345
Income (loss) before extraordinary item and cumulative effect of accounting change		233,826			532,359			(156,366	)
Extraordinary loss on retirement of debt, net of income taxes of $1,894		(2,976	)		—			—
Cumulative effect of accounting change, net of income taxes of $3,525		—			—			(146,983	)
Net income (loss)	$	230,850		$	532,359		$	(303,349	)
Earnings per share:
Income (loss) before extraordinary item and cumulative effect of accounting change:
Basic	$	3.34		$	7.79		$	(2.08	)
Diluted	$	3.11		$	7.12		$	(2.08	)
Extraordinary loss on retirement of debt, net of income taxes:
Basic	$	(0.04	)	$	—		$	—
Diluted	$	(0.04	)	$	—		$	—
Cumulative effect of accounting change, net of income taxes:
Basic	$	—		$	—		$	(1.96	)
Diluted	$	—		$	—		$	(1.96	)
Net income (loss):
Basic	$	3.30		$	7.79		$	(4.04	)
Diluted	$	3.07		$	7.12		$	(4.04	)
Weighted-average number of shares used in calculation of earnings per share:
Basic		69,933			68,301			75,108
Diluted		75,239			74,786			75,108

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IDT CORPORATION

CONSOLIDATED QUARTERLY STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	Oct. 31, 2001			Jan. 31, 2002			April 30, 2002			July 31, 2002
	(Restated)			(Restated)			(Restated)			(Restated)
Revenues	$	341,563		$	391,937		$	419,447		$	430,847
Costs and expenses:
Direct cost of revenues (exclusive of items shown below)		267,121			296,573			323,062			328,044
Selling, general and administrative		71,346			135,706			140,570			120,295
Depreciation and amortization		15,904			22,181			23,791			22,040
Restructuring, severance and impairment charges		8,692			15,287			114,436			119,087
Total costs and expenses		363,063			469,747			601,859			589,466
Loss from operations		(21,500	)		(77,810	)		(182,412	)		(158,619	)
Interest income, net		9,002			3,660			4,531			6,981
Other income (expense):
Equity in income (loss) of affiliates		(5,812	)		—			—			3,586
Investment and other income (expense), net		(14,500	)		8,580			(4,432	)		(3,402	)
Loss before minority interests, income taxes and cumulative effect of accounting change		(32,810	)		(65,570	)		(182,313	)		(151,454	)
Minority interests		3,256			32,640			111,487			4,053
Benefit from income taxes		18,222			15,718			21,233			69,172
Loss before cumulative effect of accounting change		(11,332	)		(17,212	)		(49,593	)		(78,229	)
Cumulative effect of accounting change, net of income taxes of $3,525		(146,983	)		—			—			—
Net loss	$	(158,315	)	$	(17,212	)	$	(49,593	)	$	(78,229	)
Loss per share:
Loss before cumulative effect of accounting change:
Basic	$	(0.16	)	$	(0.23	)	$	(0.64	)	$	(0.99	)
Diluted	$	(0.16	)	$	(0.23	)	$	(0.64	)	$	(0.99	)
Cumulative effect of accounting change, net of income taxes:
Basic	$	(2.06	)	$	—		$	—		$	—
Diluted	$	(2.06	)	$	—		$	—		$	—
Net loss:
Basic	$	(2.22	)	$	(0.23	)	$	(0.64	)	$	(0.99	)
Diluted	$	(2.22	)	$	(0.23	)	$	(0.64	)	$	(0.99	)
Weighted-average number of shares used in calculation of loss per share:
Basic		71,409			73,382			76,938			78,704
Diluted		71,409			73,382			76,938			78,704

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IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

	July 31
	2001			2002
	(in thousands, except share data)
				(Restated)
ASSETS
Current assets:
Cash and cash equivalents	$	1,091,071		$	415,464
Marketable securities		3,489			684,502
Trade accounts receivable, net of allowance for doubtful accounts of $22,508 at July 31, 2001 and $39,207 at July 31, 2002		116,759			129,308
Other current assets		32,413			78,796
Total current assets		1,243,732			1,308,070
Property, plant and equipment, net		224,042			283,506
Goodwill		178,293			34,411
Licenses and other intangibles, net		19,511			27,242
Investments		60,732			44,085
Marketable securities		—			18,704
Other assets		155,279			48,725
Total assets	$	1,881,589		$	1,764,743
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	163,313		$	128,863
Accrued expenses		54,893			160,159
Deferred revenue		71,387			120,206
Capital lease obligations—current portion		20,927			25,963
Other current liabilities		17,819			19,491
Total current liabilities		328,339			454,682
Deferred tax liabilities, net		390,914			233,518
Capital lease obligations—long-term portion		50,179			48,068
Other liabilities		14,502			5,060
Total liabilities		783,934			741,328
Minority interests		21,419			166,564
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—10,000,000; no shares issued		—			—
Common stock, $.01 par value; authorized shares—100,000,000; 22,791,789 and 19,568,634 shares issued and outstanding in 2001 and 2002, respectively		228			196
Class A common stock, $.01 par value; authorized shares—35,000,000; 9,816,988 shares issued and outstanding in 2001 and 2002		98			98
Class B common stock, $.01 par value; authorized shares—100,000,000; 39,291,411 and 49,990,681 shares issued and outstanding in 2001 and 2002, respectively		393			500
Additional paid-in capital		494,093			606,387
Deferred compensation		—			(12,919	)
Treasury stock, at cost		(138,087	)		(153,713	)
Accumulated other comprehensive loss		(2,575	)		(2,435	)
Retained earnings		722,086			418,737
Total stockholders’ equity		1,076,236			856,851
Total liabilities and stockholders’ equity	$	1,881,589		$	1,764,743

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IDT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year ended July 31
	2000			2001			2002
							(Restated)
	(in thousands)
Operating activities
Net income (loss)	$	230,850		$	532,359		$	(303,349	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization		48,564			60,351			83,916
Restructuring, severance and impairment charges		—			199,357			257,501
Write-off of inventory		—			—			2,773
Loss on sale of assets		—			—			3,707
Extraordinary loss on retirement of debt before income taxes		4,870			—			—
Cumulative effect of accounting change before income taxes		—			—			150,508
Minority interests		(59,336	)		5,726			(151,436	)
Price guarantee of Class B common stock		—			—			5,310
Deferred tax liabilities		216,903			204,188			(135,799	)
Issuance of common stock to charitable foundations		—			26,378			2,952
Net realized (gains)/losses from sales of marketable securities and investments		(261,025	)		148,724			8,443
Equity in loss of affiliates		6,289			75,066			2,226
Non-cash compensation		42,917			3,082			16,440
Gain on Tycom settlement		—			(313,486	)		—
Gain on sales of subsidiary stock		(350,344	)		(1,037,726	)		—
Changes in assets and liabilities:
Trade accounts receivable		(52,643	)		36,029			35,406
Other assets		(28,194	)		14,234			(7,157	)
Trade accounts payable, accrued expenses and other liabilities		90,053			64,675			(48,655	)
Deferred revenue		34,026			7,271			42,807
Net cash (used in) provided by operating activities		(77,070	)		26,228			(34,407	)
Investing activities
Purchases of property, plant and equipment		(101,192	)		(106,513	)		(49,026	)
Issuance of notes receivable		—			(12,089	)		(12,455	)
Investments and acquisitions, net of cash acquired		(38,803	)		(73,722	)		(91,383	)
Increase in cash from consolidation of Net2Phone		—			—			144,177
Collection of notes receivable		9,524			—			—
Sales of marketable securities		—			164,052			801,593
Purchases of marketable securities		(7,059	)		—			(1,456,093	)
Net proceeds from sale of equity interests in subsidiary		115,434			1,042,113			—
Net cash (used in) provided by investing activities		(22,096	)		1,013,841			(663,187	)
Financing activities
Distributions to minority shareholders of subsidiaries		(3,177	)		(18,908	)		(19,018	)
Proceeds from borrowings		13,898			—			—
Proceeds from exercise of warrants		117			—			—
Proceeds from exercise of stock options		22,706			6,883			53,924
Repayment of capital lease obligations		(9,833	)		(14,736	)		(20,971	)
Repayment of borrowings		(108,146	)		(26,054	)		(6,308	)
Proceeds from issuance of common stock and Class B common stock		128,648			74,787			—
Proceeds from offerings of common stock by Net2Phone		261,189			—			—
Collection of loans to stockholders by Net2Phone		623			—			—
Proceeds from sale of subsidiary stock		5,000			—			30,000
Proceeds from issuance of stock options		—			2,000			—
Repurchases of common stock and Class B common stock		(101,883	)		(135,849	)		(15,640	)
Net cash provided by (used in) financing activities		209,142			(111,877	)		21,987
Net (decrease) increase in cash and cash equivalents		109,976			928,192			(675,607	)
Cash and cash equivalents at beginning of year		52,903			162,879			1,091,071
Cash and cash equivalents at end of year	$	162,879		$	1,091,071		$	415,464
Supplemental disclosure of cash flow information
Cash payments made for interest	$	10,074		$	7,997		$	6,189
Cash payments made for income taxes	$	1,050		$	5,963		$	12,176
Supplemental schedule of non-cash investing and financing activities
Purchases of property, plant and equipment through capital lease obligations	$	45,541		$	27,010		$	22,046
Exchange of Net2Phone common stock for shares of Yahoo! Inc.	$	—		$	150,000		$	—
Issuance of Class B common stock for acquisitions	$	—		$	—		$	34,964

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