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IDT Corporation to Acquire a Controlling Interest in EGL Oil Shale LLC

Posted on: Tuesday, 22 January 2008, 18:00 CST

IDT Corporation (IDT) and EGL Oil Shale, LLC (EGL) announced today that IDT has signed a binding Letter of Intent to acquire a 75% interest in EGL. EGL is one of three holders of 10-year leases granted by the US Bureau of Land Management (BLM) to research, test and demonstrate the potential for commercial oil shale production in Western Colorado. This area is estimated to contain the world's richest oil shale reserve, with 1.2 trillion barrels of potentially recoverable oil. The 10-year lease affords EGL the opportunity to demonstrate its innovative oil shale recovery technology in the field. The other holders of similar leases in Colorado are Royal Dutch Shell and Chevron. Proceeds from IDT's investment will be used to fund EGL's Research, Development and Demonstration plan. Once EGL demonstrates the economic and environmental viability of its technology, it will have the opportunity to expand its lease to 5,120 acres for commercial development.

IDT's investment in EGL is part of a broader strategic initiative to significantly expand its operations in the energy sector. Claude Pupkin, SVP of Corporate Development, stated: "We believe that EGL represents a great strategic fit as it combines oil & gas expertise, an entrepreneurial spirit and an innovative approach to the oil shale opportunity."

Oil shale is a mineral that contains a solid hydrocarbon that requires heating to high temperatures to produce oil and gas. Past efforts to commercialize oil shale in Colorado were based upon mining and surface processing methods. EGL's approach is to recover the shale oil underground without mining by using modern oil and gas drilling, completion and recovery technologies not available to earlier developers. Following an environmental assessment, EGL's process was given a finding of No Significant Impact by the BLM. The transaction may be subject to applicable regulatory approvals.

"We are extremely pleased to be working with IDT, a company that shares our values and approach to solving the energy challenges facing our country and the world," said Wes Perry, EGL's President. "EGL's mission is to be a good steward of the asset, providing for an energy independent America in an environmentally conscious manner."

Howard Jonas, Chairman of IDT Corporation, stated: "We are extremely excited to join forces with EGL in this effort. A successful development of this resource will help break our country's dependence on imported oil, greatly improving our national security while making a significant contribution to the US economy."

About EGL

E.G.L. Oil Shale, LLC is a subsidiary of EGL Resources, Inc., a privately owned independent oil & gas company with operations in the southwestern United States. EGL Resources is a working alliance of petroleum geologists, geophysicists, engineers, management and property operating professionals based in Midland, Texas.

About IDT

IDT Corporation is an innovative and opportunity seeking multinational holding company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. IDT Energy operates an Energy Services Company (ESCO) in New York State. 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 receivables portfolio management and collection, ethnic food distribution, brochure distribution, Internet Mobile Group, Net2Phone Ventures 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.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those with the words "believe,""anticipate,""expect,""plan,""intend,""estimate,""target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to IDT as of the date thereof, and IDT assumes no obligation to update any forward-looking statements or risk factors.

Source: Business Wire

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