Newark, N.J., October 13, 2004 - IDT Entertainment today announced the launch of New Arc Entertainment, a film production company producing live action feature films and animated movies in the supernatural/thriller/action genre. New Arc is committed to producing multiple live action features, several animated films and one animated series within its first 15 months of operation. John W. Hyde, COO of IDT Entertainment, will manage the new company. IDT Entertainment is a subsidiary of IDT Corporation (NYSE: IDT, IDT.C), an international telecom, entertainment and technology company.

Principal photography on "The Fallen Ones," New Arc's first feature, was completed in September 2004. The film, starring Casper Van Dien, Robert Wagner, Tom Bosley, and Kristin Miller, and directed by Kevin Van Hook, is a supernatural thriller. New Arc's next film, "All Souls Day: Dia De Los Muertos," starring Laura Elena Harring and Danny Trejo and directed by Jeremy Kasten, (The Attic Expeditions), began principal photography in October 2004. The film was produced by Mindfire Entertainment through their CFQ Films division and was written by Mark Altman and produced by Mark Gottwald and Altman, also publishers of CFQ (formerly Cinefantastique) and Femme Fatales magazines. "All Souls Day" will be promoted in CFQ (formerly Cinefantastique) and Femme Fatale magazines.

Additional New Arc projects in pre-production include several feature films with acclaimed producer Stephen J. Cannell. IDT Entertainment home video subsidiary Anchor Bay is currently distributing several of Cannell's television series including the fall release of "Silk Stalkings," "21 Jump Street" and "The Commish."

IDT Entertainment animation productions included under the New Arc umbrella are: "El Superbeasto" by Rob Zombie, Todd McFarlane's "Spawn," and the six picture series "Stan Lee Presents¿" the first two of which are "Chameleon" and "El Lobo." New Arc anticipates additional announcements for new projects soon.

"New Arc's major launch is sparking interest in Hollywood," said Jim Courter, IDT's CEO. "First, IDT Entertainment made its mark in animation by assembling a group of innovative and creative companies. Now, New Arc is bringing together today's top talent to deliver live action movies to an audience of millions."

Initially, New Arc will distribute its movies direct to DVD. Anchor Bay, IDT Entertainment's home video subsidiary, will distribute New Arc product in the U.S., Canada and the U.K. IDT Entertainment Sales will handle international sales in all media.

"Anchor Bay currently distributes a number of cult classics by George Romero, John Carpenter, Clive Barker and Sam Rami," said John Hyde, CEO of New Arc Entertainment. "Through New Arc, IDT Entertainment continues the genre with a lineup of new classics guaranteed to cause viewers to watch with the lights on while sitting on the edge of their seats."

For many of New Arc's live action features the company will rely on DPS Film Roman's Forum Visual Effects for special effects work. Forum Visual Effects is well known for creating visual effects for such films as "I, Robot," "Daredevil," "My Favorite Martian" and "Miss Congeniality."

IDT Entertainment, a division of IDT Corporation, is a vertically integrated entertainment concern that develops, produces and distributes proprietary and licensed entertainment content, with a particular focus on high-quality animation.