IDT to Pursue Spin-Off of Retail Energy Supplier with Other Energy Businesses

IDT Corporation's Board of Directors has directed management to pursue a spin-off of its Genie Energy division, which includes competitive retail supplier IDT Energy.

Genie Energy would include:

• IDT Energy, a competitive retail electric and natural gas supplier operating in New York, New Jersey and Pennsylvania;
• American Shale Oil Corporation, which holds IDT's interest in a joint oil shale venture with Total, SA operating in Western Colorado;
• Israel Energy Initiatives (IEI), which holds a majority interest in an oil shale venture in Israel, and;
• Certain related smaller initiatives, and the cash resources necessary to execute on those projects.

"The spin-off of Genie Energy will enable both Genie and IDT Telecom to focus on their respective growth strategies and more effectively meet their long term capital requirements while providing investors with industry focused investment vehicles," said Howard Jonas, Chairman and CEO of IDT.

"The moves that we are announcing today provide a framework that will help shareholders realize the underlying value of IDT's businesses and holdings," Jonas added.

The spinoff of Genie Energy under consideration is intended to be tax-free to IDT stockholders.

IDT Energy recently reported income from operations of $37.8 million for fiscal 2010, versus $45.4 million for fiscal 2009 (Only in Matters, 10/15). Total meters served by IDT Energy as of July 31, 2010 were approximately 369,000.