Cabbage Patch Kids is a licensed property of OAA represented exclusively by 4Kids Entertainment. IDT Media is a division of IDT Corporation, a multinational carrier, technology and telephone company.

This year celebrates the 20th anniversary of Original Appalachian Artworks' (OAA) launch of the Cabbage Patch Kids franchise. Since the original hand made doll was created by Xavier Roberts more than two decades ago, over 90 million have been "adopted" worldwide. These projects mark the first time Cabbage Patch Kids have been animated in 3-D.

"DPS is quickly becoming the animation company of choice for marquee properties," said Jim Courter, IDT's CEO. "Cabbage Patch is one of the most recognized toy franchisees in the world. The fact that 4Kids Entertainment has put its trust in DPS to bring Cabbage Patch Kids to life says a great deal about our talent, as well as, our ability to produce high end 3-D digital productions at lower cost."

Presently, DPS is completing production on the Cabbage Patch Kids music video featuring Ripe Records pop singing sensation Jaimie Lee aka J-ME. Showcasing an original song "Every Kid is One of a Kind" the video features a live Jaimie Lee interacting with 3-D animated Cabbage Patch Kids. A 30 second advance clip from the video debuted June 1, 2003 at Zootopia, a live music event at Giants Stadium sponsored by Z-100 FM in New York. Simultaneously, DPS is producing "Cabbage Patch Kids Jump" an all 3-D animated active play video designed to encourage children to exercise.

"This agreement is an important step in our development plan," said Morris Berger, Executive Vice President, of IDT Media. "These projects allow us to demonstrate our ability to utilize our Global Protocol on complex productions. Moving ahead our goals are partnering with toy companies interested in animating their established brands and sharing in revenue from sales."

Both projects will be packaged together for the direct-to-DVD market. 4Kids Entertainment Home Video will handle distribution. Scheduled release date is 4th Quarter 2003.

"We're impressed by DPS's combination of creativity and management savvy," said Carlin West, 4Kids Entertainment Sr. VP of Marketing and Licensing. "Cabbage Patch is one of the world's best loved toys with a loyal following of millions of children and adults. We're confident DPS will bring our "Kids" to 3-D life with all the care they deserve."

IDT Corporation, through its IDT Telecom, Inc. subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. IDT Telecom, by means of its own national telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media Corporation own 95% and 5% of IDT Telecom, respectively. IDT Media, Inc. is the IDT subsidiary principally responsible for the Company's initiatives in media, new video technologies and print media. Winstar Holdings, LLC is the IDT subsidiary through which we provide broadband and telephony services to commercial and governmental customers through a fixed-wireless and fiber infrastructure. In December 2002, we announced that the services offered by Winstar would begin to be offered under the name "IDT Solutions." Net2Phone, Inc., which we reconsolidated effective August 1, 2002, is a leading provider of high-quality global retail Voice over IP services, either directly or via a partner.

IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C.