IDT Entertainment and Vanguard Animation Launch Production of Animated Feature Film ``Space Chimps''; Comedy to Be Distributed by Twentieth Century Fox

"We have developed this project over the past several years withextremely talented writers, and I'm thrilled with the result," saysthe film's producer and Vanguard CEO John H. Williams ("Shrek")."We've put enormous time and creative energy into the evolution of thecharacters, the look of the film, and the story arc, and we'reconvinced we have a franchise film."

"We're delighted that "Space Chimps" is now underway," says MorrisBerger, IDT Entertainment CEO. "This comedic family entertainment haseverything we look for in the films we produce including enthrallingstorytelling and engaging characters. We're looking forward to aterrific collaborative experience."

Norton Virgien ("The Rugrats Movie," "Rugrats Go Wild!") andDonovan Cook ("Mickey, Donald, Goofy: The Three Mouseketeers") willdirect. The writer is Kirk DeMicco, whose credits include last year'scomedy "Racing Stripes," "The Twits," in development forVanguard/Disney (co-writing with John Cleese), and the upcoming "CroodAwakening" for Aardman and DreamWorks. Other writers are JasonVenokur, Dave Goetsch, & Ross Venokur.

Extensive character design and storyboarding are currentlyunderway in Vancouver, BC at IDT Entertainment and Vanguard'sstate-of-the-art CG animation studio.

John Williams is the Producer, Curtis Augspurger is Co-Producer,Tom Jacomb is Associate Producer, and Eric Bennett and Neil Braun areExecutive Producers for Vanguard Animation. Morris Berger, Stephen R.Brown, Janet Healy and Jerry Davis are Executive producers for IDTEntertainment. "Space Chimps" is an IDT Entertainment presentation ofa Vanguard Animation film. Odyssey Entertainment has sold the film inall major international territories.

Neil Braun, IDT Entertainment's President of Feature Films andTelevision, continues to serve as President and Chief OperatingOfficer of Vanguard Animation. IDT Entertainment owns approximately23% of Vanguard Animation.

Vanguard Animation/Vanguard Films is a film and animationproduction company, which produced "The Tuxedo" with Jackie Chan forDreamWorks and "Seven Years in Tibet" with Brad Pitt for Sony.Vanguard's first independently financed animated feature film,"Valiant," was distributed domestically by Disney in 2005 and debutedon DVD in December 2005. Vanguard's next CG-animated film with theBerliner Film Center and Berlin Animation Fund, "Happily N'EverAfter," has just wrapped production.

IDT Entertainment is a vertically integrated entertainment companythat develops, produces, and distributes proprietary and licensedentertainment content. The company's first CG feature film,"Everyone's Hero," distributed through Twentieth Century Fox,premieres nationwide on September 15th. IDT Entertainment is adivision of IDT Corporation (NYSE:IDT)(NYSE:IDT.C), an internationaltelecom, entertainment, and technology company.

Important Note: In this press release, all statements that are notpurely about historical facts, including, but not limited to, thosewith the words "believe," "anticipate," "expect," "plan," "intend,""estimate, "target" and similar expressions, are forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995. While these forward-looking statements representIDT's current judgment of what may happen in the future, actualresults may differ materially from the results expressed or implied bythese statements due to numerous important factors, including, but notlimited to, those described in IDT's most recent report on SEC Form10-K (under the heading "Management's Discussion and Analysis ofFinancial Condition and Results of Operations"), which may be revisedor supplemented in subsequent reports on SEC Forms 10-Q and 8-K andother filings IDT may make with the SEC.