Liberty Media Closes Stage One of IDT Entertainment Buy

ENGLEWOOD/NEWARK, August 25: Liberty Media Corporation has
completed the first stage of its acquisition of IDT Entertainment, taking
control of the American and select international operations.

IDT Corporation’s sale of the Canadian and Australian
operations to Liberty Media will occur in the next several weeks after certain
regulatory approvals have been obtained and customary closing conditions have
been satisfied. IDT Entertainment will be combined with the Starz Entertainment
Group and will be attributed to the Liberty Capital Group.

"Joining IDT Entertainment and Starz will allow both to
benefit and grow as part of an integrated media organization with substantial
programming production capabilities and access to all distribution outlets,"
said Liberty’s president and CEO, Gregory B. Maffei. "And this transaction
advances our strategy of converting passive assets into operating business
units."