IDT Buys Belgacom's Prepaid Unit

IDT acquires Expercom prepaid calling card business from Belgacom to increase its presence in Europe

April 22, 2005

2 Min Read

NEWARK, N.J. and LONDON -- IDT Europe announced today that it has acquired the Expercom pre-paid phone card business from Belgacom, Belgium's leading telecommunications company. The deal strengthens IDT's presence in Europe. IDT Europe is a division of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, technology and entertainment company.

Expercom markets calling cards throughout Belgium. The cards are available at post offices, railway stations, and retail location such as newspaper stands, neighborhood shops and supermarkets. Expercom's cards provide low cost, high quality phone service within Belgium and to more than 200 countries worldwide. Calls may be placed from private, public or mobile phones. For the first part of 2004, Expercom calling card sales averaged more than 250,000 cards a month.

"This acquisition provides IDT with a solid platform for continued expansion across Europe, The Middle East and Africa," said Jim Courter, IDT's CEO. "IDT Europe's plan is to expand organically and through strategic acquisitions. This is similar to how IDT built its calling card business in the U.S."

IDT Europe presently markets more than 350 individual brands of calling cards in 17 European countries. The addition of Expercom's calling card products gives IDT Europe a larger share of the market in Belgium and provides a platform for further expansion.

"The combination of IDT Europe and Expercom's operations and plans for European expansion are an ideal fit, offering a tremendous opportunity of growth within the region," said Marc Bodner, Managing Director of IDT Europe. "The quality of our products and commitment of our team have enabled us to grow considerably despite the competition in the calling card industry. IDT Europe has consolidated its position as the leading force in the European telephony industry and integrating the Expercom operations into IDT Europe will be a key focus for the next quarter."

IDT Corp.

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