C.D.I. Systems Announces the signing of a Strategic Services Agreement with IDT Ventures

January 15 2005, JERUSALEM---C.D.I. Systems, a developer of an innovative online publishing solution, NetIS™, announced today the signing of a Strategic Services Agreement with IDT Ventures, a division of multinational telecommunications, entertainment and technology company IDT Corp. (NYSE: IDT). Under the agreement, IDT Ventures will provide various business acceleration services to C.D.I. to assist C.D.I. in expanding its business in the US.

Hillel Ashkenazy, Adv., C.D.I. Systems Chairman and founder emphasizes: "The agreement with IDT comprises an important reference point in the development of our company overseas. According to numerous market researches, the paid online content market is significantly growing worldwide. Based upon our professional and eager team, our rich experience in the e-publishing industry and subsequent intensive years of R&D, we have been able to provide the online publishing industry with the right tools at the right time".

According to research by the Online Publishers Association (OPA), U.S. consumer spending for paid online content reached an all-time annual high of $1.8 billion in 2004. C.D.I. Systems believes that the market for paid online content remains promising, with significant room for growth.

Itzhak Levit, C.D.I Systems' CEO said: "Protecting content from illegal use has become a crucial issue. There is a strong increase in demand for solutions that provide both, a practical approach for online publishing and practical protection methods. It is not by chance that prestigious companies such as D&B, IDC and Globes are using our technology. They rightfully expect their valuable information to be tightly controlled and protected so that only those who have the specific rights or clearances are permitted to access. The integrated nature of our proprietary technology - NetIS™- providing Digital Rights Management (DRM), Web Content Management, Retrieval and e-commerce tools under one logical roof, fulfill these needs, fitting like a glove".

Levit adds: "IDT is the ultimate partner for our company and I am confident that IDT will be able to accelerate our activities in the US through their strong business relationships and market presence".

Until now, C.D.I. Systems' primary activities have been focused on expanding the NetIS™ customer base in Europe through the establishment of a reseller network. C.D.I. Systems has entered into agreements with French, Dutch and German system integrators and now intends to continue expanding its system integrator network worldwide.

About C.D.I. Systems

Founded in 1992, C.D.I. Systems is a privately owned software house, headquartered in Israel. The Company's online publishing solutions have been deployed throughout the world as part of interactive legal productions on CD-ROM, dynamic professional databases (on-line and handheld), newspapers, phone directories, electoral registries and encyclopedias. C.D.I. Systems is the leading e-publisher of legal content in Israel and is a principal technology provider to the legal market in Germany, with a multitude of applications and customers, and including high profile applications such as the Dun and Bradstreet - Market analyzer, IDC Israel - Pay per view site, and Globes archive - Israel leading business newspaper.

Contact:
Ely Calderon
Deputy CEO
C.D.I. Systems
+972-2-587-0112
ecalderon@cdisys.com