1. IDT: Positioned for Success Stockholders’ Meeting December 14, 1999 Jerry Taylor The following presentation contains Jerry Taylor’s key points from Stockholder’s Meeting on 12/14/99

2. Forward-Looking Statement This presentation contains forward-looking statements which involve a number of risks and uncertainties, including product demand, manufacturing capacity and costs, competition, pricing, third party intellectual property rights, timely development and supply of new products and processes, availability of capital, cash flow and other risks detailed in the Company’s Securities and Exchange Commission filings. Actual results may differ materially from our projections. Please review the section titled “Forward-Looking Statements” in IDT’s most recent 10Q and 10K forms on file with the Securities and Exchange Commission.

3. Positioned for Success Right organization Right business model Right market Right products

4. Accelerating Stockholder Value Completed manufacturing restructure Achieved.18-micron technology milestone Integrated QSI portfolio Increased content of value-added and higher margin products Leadership transition Increased revenues; reduced costs Increased investment and focus on high-growth communications market; exited x86 business Generated record revenue from communications memories Achieved break-even in SRAM Strong return to profitability “The last year has been a time of great transition for IDT. But the achievements have well positioned IDT for success and increased value for our stockholders.”

5. Why Focus on Communications? It’s where the next revolution is happening It’s the highest growth market It’s where we add value It’s where we are strong “Communications is changing the way the world lives and works. IDT is enabling the infrastructure that supports that market..”

6. Strong Communications Market Growth for IDT 36% 34% 17% 13% Fiscal 1996 70% 8% 9% 13% Fiscal 2000 Communications Personal Computing Large Network Servers/Peripherals Miscellaneous “Communications represents IDT’s area of focus and will continue to be the company’s fastest-growing market.”

7. Digitally Connected World Wireless Network SOHO/ Consumer ADSL Enterprise Network Cable Satellite The Telephone Network The Telephone Network The Internet The Internet “The high- performance applications in these segments of the market are the targets for IDT products.”

8. Source: Forrester Research Internet Users 250 M “Growth in the number of Internet users is driving the significant growth in the communications industry that IDT serves.”

9. Phone Lines 700 M1400 M Wireless Users 300 M900 M Total 1 Billion 1000 new providers of communications services worldwide from 1998 to 2000 Voice – No Slowdown Here Either! Today 2.3 Billion 2015 Source: Lucent “Voice, led by wireless, represents tremendous growth on an already large base.”

10. The Bandwidth Explosion 1995 2.5 gigabits 1998 400 gigabits 2002 2-3 terabits Source: Lucent Over the same period the amount of installed fiber will double C apacity of a Single Fiber “The infrastructure is in place. The growth will be limited by the equipment available to support it. That’s where IDT products are utilized.”

11. Growth Rate (CAGR 1999-2002) High-Growth Markets Source: Dataquest/In-Stat Jan-April 1999 Market Routers 100 Mbit Switches Cellular ADSL Shipments (1999E) 2,100,000 Units 34,600,000 Ports 200,000,000 Phones 900,000 Units 25% 31% 30% 86% “Our customers are serving the highest-growth segments of the communications industry and we’re prepared to grow with them.”

12. What are IDT’s Goals? or #2 in the markets we serve #1 billion in revenues in 2- 3 years $1 pretax profit 20% Be an industry leader in value-added semiconductor products for the communications industry “My vision for IDT is to be a world leader in communications semiconductors. This is where we can add value and achieve consistent success.”

13. Are we headed in the right direction ? “This strategy is not new for IDT. Let’s take a look at how we’re doing.”

14. 1996 60% of IDT SRAM Family Logic 60% of IDT Communications Memories RISC Microprocessors Network Products Clock Products 2000 PROCESSING MEMORY COMMODITYPROPRIETARY * Fiscal Year IDT Products – Increased Value “IDT has made a dramatic shift from commodity products to value-added products for the communications market.”

15. Revenue Growth (Excluding WinChip and QSI) $ Millions “For four quarters in a row, we have grown our core businesses at 6-9% and we see this trend continuing.”

16. Earnings Per Share (Excluding One-Time Charges) *Consensus Analyst Estimates “More importantly, there has been a dramatic increase in our profitability. We have steadily improved our earnings for the last four quarters. Our increased stock value is a direct result of this feat.”

17. * Forecasted Increased Manufacturing Capacity “IDT is well-positioned with the capacity to support the growth in our businesses that we anticipate. We have increased our fab output by 30%. We have capability to increase output by another 40% with additional equipment. We also plan to aggressively scale to.18 technology to support our growth. ”

18. Outpacing the Competition (Dec. 9, 1999) Historical chart data and daily updates provided by Standard & Poor’s ComStock IDTI 52-week stock performance compared to PMC- Sierra, National, Cypress, TI, Micron and AMD “IDT has grown more than 300% in stock valuation during the last year. We have done a solid job in driving the results that supports that value.”

19. Average P/E based on CY2000 estimates = 42 IDTI P/Es of Semi Stocks “IDT’s P/E ratio still has room to improve. The increased stock valuation has been a result of profitability, but we have far more aggressive goals for IDT’s stock value.”

20. What Differentiates IDT? E ngagement with existing and emerging communications industry leaders H igh percentage of current revenues in communications V alue-added solutions for communications “IDT’s customers are the ‘Who’s Who’ in communications.”

21. Solutions for the Communications Market Based on MIPS ® Architecture Embedded µProcessors System Controllers Microprocessors High-Speed Logic ALVC/LVC 3.3v Logic QuickSwitch ® Clock Management SRAMs PBSRAMs Asynchronous SRAMs Networking Devices Physical Layer 25-155M Switch Memory/Controller SAR Controllers Communications Memories FIFOs Multi-Ports ZBT ® /QDR™Memories “Few of IDT’s competitors can match our product portfolio that supports the communications market.”

22. What Differentiates IDT? P erformance I nnovation P roduct Breadth “IDT is a performance leader. We have the industry’s broadest portfolios in many product categories and are the standard-setter in communications memories.”

23. Key Customers Alcatel Bay Networks/Nortel Cabletron Cisco EMC Ericsson FORE Systems Fujitsu IBM Lucent/Ascend Motorola NEC Newbridge Nokia Samsung Siemens/Italtel Sony 3COM Toshiba Xylan “Among IDT’s top 20 customers are the world’s leading communications suppliers.”

24. Where Are We Winning? H igh-end routers and line cards L AN switches W AN access switches A DSL network termination W ireless base stations V oice over IP gateways Hot Communications S et-top boxes D igital video H igh-end printers Hi-Perf Apps “IDT has won a record number of designs in leading- edge communications systems. Additionally, our products are used in other high-performance applications.”

25. Header FIFO 72V36110 CPU RC3041 1 Gbps Serdes Routing Table 4-Mbit ZBT 71V3558 L3 Lookup ASIC DRAM System Control ASIC 8 x 10/100 Ethernet MACs Packet Dual-Port 70v3389 ALVC FIFO 72v263 High-End Router LAN Interface Line Card Powered by “IDT provides many of the key components and solutions needed in communications systems with our broad product portfolio.”

26. PHY ADSL PHY 77V1254 WAN Access Switch Powered by Header translate 77V012 SWITCH StAR Data Path Memory 77V400 SWITCHStAR Controller 77V500 SRAM 64K x 32 71V633 DPI to U2 77V011 PHY 77155 7M9512 CPU Module DPI to U2 77V011

27. CH1CH2CH3CH4 CH5CH7CH6CH8 CPU RC64V574 DRAM DSP Network I/F DSP AIR I/F Voice Codec ATM, ISDN T1/E1 Wireless Base Station Powered by SRAM 32K x 24 FIFO FourPort Memory 7054 SRAM 32K x 24 SRAM 32K x 24 System Controller RC64145 SRAM 32K x 24

28. Why Are We Winning? I ntegration of high-performance logic and high-density memory on chip A rchitectural innovation B road portfolio of the right solutions aimed at leading- edge applications

29. IDT’s Direction for the Future G row revenue and maximize market share C ontinue to support the high- performance needs of leading- edge communications customers D rive new product development in communications and networking products I ncrease perception of IDT as a leader in ICs for communications by aggressively telling the company story “There are still a lot of people who think of us as an SRAM company serving the PC space. That’s not who we are and we’re committed to telling that story.”

30. Positioned for Success I ncreased focus on communications E ngaged with the existing and emerging industry leaders W inning by delivering high-value products in leading-edge applications S ucceeding in providing stockholder value