Position in USA Strengthened

Telefonica SA
4 May 2000


               TERRA S.A STRENGTHENS ITS POSITION IN USA

MADRID, MAY 3, 2000  -  -  Terra  Networks,  S.A.  ('Terra')  (MC:TRR;
NASDAQ:TRRA),  interested in strengthen the development of its Internet
activities in USA, announced today that it will acquire IDT Corporation's
(NASDAQ:DTC) 49% holding in Terra Networks Access Services (the U.S. 'ISP')
and 10% holding in Terra Networks Interactive Services (the U.S. 'portal') in
exchange for Terra Networks, S.A. stock.

Under the terms of this agreement, IDT will receive ordinary shares of Terra  in
exchange for its existing stakes in Terra Networks Access Services and in Terra
Networks Interactive Services. As a result of this transaction, Terra will hold
100% of the equity of the U.S. ISP and  U.S. portal and IDT will increase its
stake in Terra.

IDT is a leading facilities-based multinational carrier that combines its
position as an international telecommunications operator with its experience as
an Internet Service Provider to provide a broad range of telecommunications 
services to its wholesale and retail customers worldwide.

Terra Networks, a 67% owned subsidiary of Telefonica, S.A., is the leading
provider of Internet access (ISP) and local-language interactive content
and services to residential and small office/home office (SOHO) users in
the Spanish- and Portuguese-speaking world.  On March 30, 2000, its ISP
business has 1.98  million customers; its portals serve more than 684 million 
page-views per month and get more than 64 million visits per month.

Terra currently is the leader in Internet activities in Spanish and Portuguese
speaking countries, including Spain, Argentina, Brazil,  Mexico, Chile, Peru,
Venezuela, Guatemala and the United States.  Terra plans to launch new portals 
and Internet access services in its target markets.

In all of its current markets, Terra is developing online interactive solutions
for advertising, marketing, e-commerce and related activities.  Terra also 
combines strong regional and international content and world-class functionality
with local content that reflects its users' own communities and  is relevant to
their daily lives.

Terra is part of the Telefonica Group, and it is listed in Spanish Stock
Exchange and in the American NASDAQ.