IDT Files Initial Documents for Spin-off of Genie Energy

Genie is a wholly-owned subsidiary of IDT that holds IDT's energy assets consisting of:

IDT Energy, an energy services company that resells electricity and natural gas to residential and small business customers in New York, New Jersey and Pennsylvania; and

A 99.3% interest in Genie Oil and Gas, which consists of (1)American Shale Oil Corporation, which holds and manages a 50% interest in American Shale Oil, LLC, an oil shale initiative in Colorado, and (2)an 89% interest in Israel Energy Initiatives, Ltd., an oil shale initiative in Israel.

IDT expects to execute the spin-off in late October 2011 after the registration statement becomes effective.

"The spin-off of Genie is one of the key strategic moves we announced last year to enable stockholders to realize the inherent value in IDT's businesses," said Howard Jonas, Chairman and CEO of IDT and Chairman of Genie. "The growing global demand for energy coupled with supply disruptions caused by unrest in certain oil producing regions makes the development of oil shale more important than at any other time in our history."

Claude Pupkin, CEO of Genie, said, "We believe that, as separate entity, we will be better able to execute on our development plans for both our IDT Energy retail supply business and our unconventional energy projects. In the last year, IDT Energy has expanded its operations into two new states. Genie Oil and Gas is pursuing an environmentally sustainable approach to develop the vast oil shale resources in the United States and Israel. Both businesses possess tremendous growth potential."

The spin-off is intended to be tax-free to IDT and its shareholders.