IDT Corp. Announces Creation of IDT Media and Appoints CEO of Division |
NEWARK, N.J. – March 14, 2002 – IDT Corporation (NYSE:IDT, IDTB) today unveiled its strategic plan for its Ventures division and announced that the unit will change its name to IDT Media., to better reflect the focus of its core businesses. In addition, the company is pleased to announce the appointment of a veteran media executive as the new CEO of IDT Media.
To help implement IDT Media’s strategic plan, Mitch Burg, former President/COO of The Media Edge, has been named CEO of the division. Burg brings more than 25 years of media and marketing experience to IDT Media. Mitch’s creativity and “imagineering” helped earn The Media Edge the coveted Media Agency of the Year awards from both Advertising Age Magazine and the Cable Advertising Bureau.
“Few industries are as consumer-sensitive as the media business. Zeroing in and staying on top of the ever-changing tastes and trends in news, talk and entertainment is a daunting task,” reflected Jim Courter, IDT CEO and Vice Chairman. “Mitch Burg knows people and knows how to read the trends. We feel confident that he will help create a powerhouse media company.”
“IDT Media will open new avenues of profit and diversify the company’s business portfolio,” said Howard Jonas, IDT Chairman. “Our radio properties in particular will benefit IDT’s core telecommunications business by strengthening IDT’s leading brand position, especially in the Hispanic and other ethnic markets through targeted licensed and original programming.”
IDT Media’s radio initiatives include the Talk America Radio Network, which was acquired in November, 2001. Talk America is adding a state-of-the-art production complex at IDT’s Newark, New Jersey headquarters. The Division is also in the process of acquiring radio stations in top 30 markets, including one in the Washington, D.C. area.
“IDT has entered the media market at exactly the right time,” said new CEO Mitch Burg. “U.S. ad spending in 2001 fell almost 10%, the biggest decline in over fifty years. That has provided incredible opportunities to aggressive companies. With the downturn in ad spending noticeably slowing during the fourth quarter, a turnaround may be just around the corner, allowing IDT Media to make significant profits from its acquisitions.”
IDT Media has developed and plans to introduce a broadband platform to stream four simultaneous channels to desktops over the Winstar system. Its Digital Production Studio offers producers high quality, cost effective 3D animation via a worldwide network of animators with real-time monitoring of projects. It is also developing proprietary encryption technology to securely distribute video content. At the same time IDT Media is continuing to expand its CTM brochure distribution unit beyond local attractions to garner national advertising revenue.
IDT CORPORATION
IDT, through its IDT Telecom subsidiary, is a leading facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT Telecom provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT Media is the IDT subsidiary principally responsible for the Company’s initiatives in media, new video technologies and print media. Through its various subsidiaries, IDT has interests in several telecom, Internet-related and media companies. Recent IDT acquisitions include Winstar Communications, Net2Phone, and Talk America Radio Network.
Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Exchange Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2001 and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward looking statements.
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Mar 14, 2002 |
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