----

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| Delaware                                                       | 26-4831346                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Large accelerated filer  o | Accelerated filer  o              |
|--------------------------------------|---------------------------------------------|
| Non-accelerated filer  o   | Smaller reporting company  þ |

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| (a) | The following documents are filed as part of this Report: |
|-----|-----------------------------------------------------------|

| 1. | Report of Management on Internal Control over Financial Reporting |
|----|-------------------------------------------------------------------|

|   | Report of Independent Registered Public Accounting Firms on Consolidated Financial Statements |
|--------|-----------------------------------------------------------------------------------------------|

|   | Consolidated Financial Statements covered by Report of Independent Registered Public Accounting Firm |
|--------|------------------------------------------------------------------------------------------------------|

| 2. | Financial Statement Schedule. |
|----|-------------------------------|

|   | All schedules have been omitted since they are either included in the Notes to Consolidated Financial Statements or not required or not applicable. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The exhibits listed in paragraph (b) of this item. |
|----|---------------------------------------------------------|

| (b) | Exhibits. |
|-----|-----------|

| ExhibitNumber      | Description of Exhibits                                                                |
|--------------------|----------------------------------------------------------------------------------------|
|   2.1(1) | Separation and Distribution Agreement, dated September 14, 2009.                       |
|               |                                                                                   |
|   3.1(2) | Amendment No. 1 to the Second Restated Certificate of Incorporation of the Registrant. |
|               |                                                                                   |
|   3.2(3) | By-laws of the Registrant.                                                             |
|               |                                                                                   |
| 10.1(3)            | 2009 Stock Option and Incentive Plan of CTM Media Holdings, Inc.#                      |
|               |                                                                                   |
| 10.2(1)            | Master Service Agreement, dated September 14, 2009.                                    |
|               |                                                                                   |
| 10.3(1)            | Tax Separation Agreement, dated September 14, 2009.                                    |

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| 10.4(4) | Restricted Stock Agreement, dated October 14, 2009 between the Company and Howard Jonas. #                |
|---------|-----------------------------------------------------------------------------------------------------------|
|    |                                                                                                      |
| 14.1(1) | Code of Business Ethics and Conduct, adopted on August 18, 2009.                                          |
|    |                                                                                                      |
| 21.1    | Subsidiaries of the Registrant.                                                                           |
|    |                                                                                                      |
| 23.1*   | Consent of Zwick & Banyai, PLLC.                                                                      |
|    |                                                                                                      |
| 31.1*   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.       |
|    |                                                                                                      |
| 31.2*   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  |
| 32.1*   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       |
|    |                                                                                                      |
| 32.2*   | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       |

| (1)   | Incorporated by reference to the Company’s Form 10-K filed October 29, 2009. |
|-----------------|------------------------------------------------------------------------------------|

| (2)   | Incorporated by reference to the Company’s Form 10-K filed October 28, 2011. |
|-----------------|-----------------------------------------------------------------------------------------|

| (3)   | Incorporated by reference to the Company’s Form 10-12G/A filed August 10, 2009. |
|-----------------|--------------------------------------------------------------------------------------------|

| (4)   | Incorporated by reference to the Company’s Form 8-K filed October 20, 2009. |
|-----------------|-----------------------------------------------------------------------------------|

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|   | CTM MEDIA HOLDINGS, INC. |                                       |
|--------|--------------------------|--------------------------------------------|
|   |                     |                                       |   |
|   | By:                      | /s/    Marc E. Knoller |   |
|   |                     | Marc E. Knoller                            |   |
|   |                     | Chief Executive Officer          |   |

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| /s/ Marc E. Knoller                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------|
| Marc E. Knoller                                                                                                           |
| Chief Executive Officer, President and Director (Principal Executive Officer)                                             |
|                                                                                                                      |
| /s/ Leslie B. Rozner                                                                                  |
| Leslie B. Rozner                                                                                                          |
| Chief Financial Officer, Treasurer and Corporate Secretary (Principal Financial Officer and Principal Accounting Officer) |

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| Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements                    | F-2    |
|-----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                            |   |
| Consolidated Balance Sheets as of  July 31, 2011 and 2010                                        | F-3    |
|                                                                                                            |   |
| Consolidated Statements of Operations for the Years Ended July 31, 2011 and 2010                           | F-4    |
|                                                                                                            |   |
| Consolidated Statements of Stockholders’ Equity (Deficit) for the Years Ended July 31, 2011 and 2010 | F-5    |
|                                                                                                            |   |
| Consolidated Statements of Cash Flows for the Years Ended July 31, 2011 and 2010                           | F-6    |
|                                                                                                            |   |
| Notes to Consolidated Financial Statements                                                                      | F-7    |

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| /s/  Zwick & Banyai, PLLC                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Zwick & Banyai, PLLCSouthfield, Michigan                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                          |
| October 27, 2011                                                                                                                                                                                                                                                                                                                              |

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|                                                                                                                                                                                                              |   | Fiscal Year Ended July 31, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
| (in thousands, except per share data)                                                                                                                                                                        |   | 2011                       |    |   | 2010 |   |
|                                                                                                                                                                                                              |   |                       |    |   |   |   |
| Assets                                                                                                                                                                                                            |   |                       |    |   |   |   |
| Current assets:                                                                                                                                                                                                   |   |                       |    |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                         |   | $                          | 7,001   |   |   | $ | 6,516 |   |
| Short term investment                                                                                                                                                                                             |   |                       | 1,033   |   |   |   | 1,030 |   |
| Trade accounts receivable, net                                                                                                                                                                                    |   |                       | 3,383   |   |   |   | 3,496 |   |
| Inventory – finished goods                                                                                                                                                                                  |   |                       | 1,743   |   |   |   | 1,462 |   |
| Prepaid expenses                                                                                                                                                                                                  |   |                       | 938     |   |   |   | 965 |   |
| Note receivable – current portion                                                                                                                                                                           |   |                       | 975     |   |   |   | 321 |   |
| Total current assets                                                                                                                                                                                              |   |                       | 15,073  |   |   |   | 13,790 |   |
| Property and equipment, net of accumulated depreciation of $7,996 and $7,251 at July 31, 2011 and 2010, respectively                                                                                              |   |                       | 2,021   |   |   |   | 2,013 |   |
| Licenses and other intangibles, net                                                                                                                                                                               |   |                       | 36      |   |   |   | 17 |   |
| Note receivable                                                                                                                                                                                                   |   |                       | 1,425   |   |   |   | 2,400 |   |
| Deferred tax                                                                                                                                                                                                      |   |                       | 2,262   |   |   |   | - |   |
| Other assets                                                                                                                                                                                                      |   |                       | 183     |   |   |   | 181 |   |
| Total assets                                                                                                                                                                                                      |   | $                          | 21,000  |   |   | $ | 18,401 |   |
| Liabilities and stockholders’ equity                                                                                                                                                                        |   |                       |    |   |   |   |   |   |
| Current liabilities:                                                                                                                                                                                              |   |                       |    |   |   |   |   |   |
| Trade accounts payable                                                                                                                                                                                            |   | $                          | 1,117   |   |   | $ | 1,187 |   |
| Accrued expenses                                                                                                                                                                                                  |   |                       | 1,801   |   |   |   | 1,539 |   |
| Deferred revenue                                                                                                                                                                                                  |   |                       | 1,948   |   |   |   | 2,035 |   |
| Due to IDT Corporation                                                                                                                                                                                            |   |                       | 31      |   |   |   | 38 |   |
| Income taxes payable                                                                                                                                                                                              |   |                       | 451     |   |   |   | 770 |   |
| Capital lease obligations—current portion                                                                                                                                                                   |   |                       | 230     |   |   |   | 227 |   |
| Other current liabilities                                                                                                                                                                                         |   |                       | 616     |   |   |   | 646 |   |
| Total current liabilities                                                                                                                                                                                         |   |                       | 6,194   |   |   |   | 6,442 |   |
| Capital lease obligations—long-term portion                                                                                                                                                                 |   |                       | 355     |   |   |   | 286 |   |
| Total liabilities                                                                                                                                                                                                 |   |                       | 6,549   |   |   |   | 6,728 |   |
| Commitments and contingencies                                                                                                                                                                                     |   |                       |    |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                                                                                        |   |                       |    |   |   |   |   |   |
| CTM Media Holdings, Inc.  stockholders’ equity (deficit):                                                                                                                                         |   |                       |    |   |   |   |   |   |
| Preferred stock, $0.01 par value; authorized shares—500 and 10,000 shares July 31, 2011 and 2010 respectively; no shares issued                                                                             |   |                       | — |   |   |   | — |   |
| Class A common stock, $0.01 par value; authorized shares—6,000 and 35,000 shares at July 31, 2011 and 2010, respectively; 1,285 shares issued and outstanding at July 31, 2011 and 2010, respectively       |   |                       | 13      |   |   |   | 13 |   |
| Class B common stock, $0.01 par value; authorized shares—12,000 and 65,000 shares at July 31, 2011 and 2010, respectively; 6,920 shares issued and outstanding at July 31, 2011 and 2010, respectively |   |                       | 69      |   |   |   | 69 |   |
| Class C common stock, $0.01 par value; authorized shares—2,500 and 15,000 shares at July 31, 2011 and 2010, respectively; 1,091 shares issued and outstanding at July 31, 2011 and, 2010, respectively      |   |                       | 11      |   |   |   | 11 |   |
| Additional paid-in capital                                                                                                                                                                                        |   |                       | 56,826  |   |   |   | 58,548 |   |
| Treasury Stock, at cost, consisting of 179 shares of shares of Class A and 797 shares of Class B at July 31, 2011, and 2010, respectively                                                                         |   |                       | (1,070  | ) |   |   | (1,070 | ) |
| Accumulated other comprehensive income                                                                                                                                                                            |   |                       | 208     |   |   |   | 117 |   |
|    Accumulated deficit                                                                                                                                                                             |   |                       | (42,114 | ) |   |   | (46,235 | ) |
| Total CTM Media Holdings, Inc. stockholders’ equity                                                                                                                                                         |   |                       | 13,943  |   |   |   | 11,453 |   |
|      Non-controlling interests                                                                                                                                                           |   |                       | 508     |   |   |   | 220 |   |
| Total stockholders’ equity                                                                                                                                                                                  |   |                       | 14,451  |   |   |   | 11,673 |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                  |   | $                          | 21,000  |   |   | $ | 18,401 |   |

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|                                                            |   | Fiscal Year ended July, 31 |    |
|-----------------------------------------------------------------|--------|----------------------------|---------|
| (in thousands, except per share data)                           |   | 2011                       |    |   | 2010 |   |
|                                                            |   |                       |    |   |   |   |
| Revenues                                                        |   | $                          | 32,319  |   |   | $ | 30,026 |   |
| Costs and expenses:                                             |   |                       |    |   |   |   |   |   |
| Direct cost of revenues                                         |   |                       | 14,803  |   |   |   | 14,148 |   |
| Selling, general and administrative (i)                         |   |                       | 14,813  |   |   |   | 14,218 |   |
| Depreciation and amortization                                   |   |                       | 753     |   |   |   | 859 |   |
| Bad debt                                                        |   |                       | 84      |   |   |   | 63 |   |
| Total costs and expenses                                        |   |                       | 30,453  |   |   |   | 29,288 |   |
| Income from operations                                          |   |                       | 1,866   |   |   |   | 738 |   |
| Interest income (expense), net                                  |   |                       | 57      |   |   |   | (75 | ) |
| Other income (expense), net                                     |   |                       | 58      |   |   |   | (163 | ) |
| Income from continuing operations before income taxes           |   |                       | 1,981   |   |   |   | 500 |   |
| Benefit from (Provision for) income taxes                       |   |                       | 2,445   |   |   |   | (91 | ) |
| Income from continuing operations                               |   |                       | 4,426   |   |   |   | 409 |   |
| Discontinued operations net of tax: (Note 2)                    |   |                       |    |   |   |   |   |   |
| Loss from discontinued operations                               |   |                       | — |   |   |   | (623 | ) |
| Gain from sale of discontinued operations                       |   |                       | — |   |   |   | 1,599 |   |
| Total income from discontinued operations                       |   |                       | — |   |   |   | 976 |   |
| Net Income                                                      |   |                       | 4,426   |   |   |   | 1,385 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Less - net income attributable to non-controlling interests     |   |                       | (305    | ) |   |   | (137 | ) |
| Net income attributable to CTM Media Holdings, Inc.             |   |                       | 4,121   |   |   |   | 1,248 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Amounts Attributable to CTM Media Holdings common stockholders: |   |                       |    |   |   |   |   |   |
| Income from continuing operations                               |   |                       | 4,121   |   |   |   | 272 |   |
| Income from discontinued operations                             |   |                       | — |   |   |   | 976 |   |
| Net income attributable to CTM Media Holdings, Inc.             |   | $                          | 4,121   |   |   | $ | 1,248 |   |
|                                                            |   |                       |    |   |   |   |   |   |

| Earnings per share attributable to CTM Media Holdings, Inc. common stockholders:                   |   |   |    |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Basic:                                                                                             |   |   |    |   |   |   |
| Income from continuing operations                                                                  |   | $      | 0.49    |   |   | $      | 0.04 |   |
| Income from discontinued operations                                                                |   | $      | — |   |   | $      | 0.16 |   |
| Net Income                                                                                         |   | $      | 0.49    |   |   | $      | 0.20 |   |
| Weighted-average number of shares used in calculation of basic earnings per share:                 |   |   | 8,323   |   |   |   | 6,188 |   |
|                                                                                               |   |   |    |   |   |   |   |   |
| Diluted:                                                                                           |   |   |    |   |   |   |   |   |
| Income from continuing operations                                                                  |   | $      | 0.49    |   |   | $      | 0.03 |   |
| Income from discontinued operations                                                                |   | $      | — |   |   | $      | 0.13 |   |
| Net Income                                                                                         |   | $      | 0.49    |   |   | $      | 0.16 |   |
| Weighted-average number of shares used in calculation of dilutive earnings per share:              |   |   | 8,323   |   |   |   | 7,839 |   |
|                                                                                               |   |   |    |   |   |   |   |   |
| (i)    Stock-based compensation included in selling, general and administrative expenses |   |   | 275     |   |   |   | 357 |   |

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|                                                                                    |   | Class ACommon Stock |    |   | Class BCommon Stock |   |    | Class CCommon Stock |   |   |   AdditionalPaid-In |   |   |   Treasury |    |   | AccumulatedOtherComprehensiveIncome |   |    |   Accumulated |   |   |   Noncontrolling |   |   |   TotalEquity |    |
|-----------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|---------------------|--------|--------|--------------------------|--------|--------|-----------------|---------|--------|-------------------------------------|--------|---------|--------------------|--------|--------|-----------------------|--------|--------|--------------------|---------|
|                                                                                    |   | Shares              |    |   | Amount              |   |    | Shares              |   |   | Amount                   |   |   | Shares          |    |   | Amount                              |   |    | Capital            |   |   | Stock                 |   |   | (Loss)             |    |   | Deficit |   |   | Interests |   |   | (deficit) |   |
| BALANCE AT JULY 31, 2009                                                                |   |                | — |   |                | $      | — |                |   |   | —                  |   |   | $               | — |   |                                |   | — |               |   | $      | —               |   |   | $                  | 33,141  |   |   | $ | — |   |   | $ | 124 |   |   | $ | (47,483 | ) |   | $ | 1,967 |   |   | $ | (12,251 | ) |
| Shares issued upon spinoff                                                              |   |                | 1,285   |   |                |   | 13      |                |   |   | 5,138                    |   |   |            | 51      |   |                                |   | 1,091   |               |   |   | 11                    |   |   |               | (75     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Conversion of amount due to  IDT to APIC                                      |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | 25,293  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 25,293 |   |
| Cash contribution from IDT                                                              |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | 2,000   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,000 |   |
| Repurchases of Class A common stock and Class B common stock through repurchase program |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | (1,070 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,070 | ) |
| Stock-based compensation on restricted stock                                            |   |                | — |   |                |   | — |                |   |   | 1,786                    |   |   |            | 18      |   |                                |   | — |               |   |   | —               |   |   |               | 339     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 357 |   |
| Dividends ($0.31 per common share)                                                      |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | (2,581  | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (2,581 | ) |
| Distributions                                                                           |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,039 | ) |   |   | (1,039 | ) |
| Repurchase of non-controlling interest                                                  |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | 431     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (845 | ) |   |   | (414 | ) |
| Foreign currency translation adjustment                                                 |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | — |   |   |   | (7 | ) |
| Net income for the year ended July 31, 2010                                        |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   |   |   |   |   | 1,248 |   |   |   | 137 |   |   |   | 1,385 |   |
|                                                                                    |   |                |    |   |                |   |    |                |   |   |                     |   |   |            |    |   |                                |   |    |               |   |   |                  |   |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                    |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | (7 | ) |   |   | 1,248 |   |   |   | 137 |   |   |   | 1,378 |   |
| BALANCE AT JULY 31, 2010                                                                |   |                | 1,285   |   |                | $      | 13      |                |   |   | 6,924                    |   |   | $               | 69      |   |                                |   | 1,091   |               |   | $      | 11                    |   |   | $                  | 58,548  |   |   | $ | (1,070 | ) |   | $ | 117 |   |   | $ | (46,235 | ) |   | $ | 220 |   |   | $ | 11,673 |   |
| Shares issued upon spinoff                                                              |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Conversion of amount due to  IDT to APIC                                      |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Cash contribution from IDT                                                              |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Repurchases of Class A common stock and Class B common stock through repurchase program |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Stock-based compensation on restricted stock                                            |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | 275     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 275 |   |
| Dividends ($0.24 per common share)                                                      |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | (1,997  | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1,997 | ) |
| Distributions                                                                           |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (17 | ) |   |   | (17 | ) |
| Repurchase of non-controlling interest                                                  |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Foreign currency translation adjustment                                                 |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | 91 |   |   |   | — |   |   |   |   |   |   |   | 91 |   |
| Net income for the year ended July 31, 2011                                        |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | — |   |   |   | 4,121 |   |   |   | 305 |   |   |   | 4,426 |   |
|                                                                                    |   |                |    |   |                |   |    |                |   |   |                     |   |   |            |    |   |                                |   |    |               |   |   |                  |   |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                    |   |                | — |   |                |   | — |                |   |   | —                  |   |   |            | — |   |                                |   | — |               |   |   | —               |   |   |               | — |   |   |   | — |   |   |   | 91 |   |   |   | 4,121 |   |   |   | 305 |   |   |   | 4,426 |   |
| BALANCE AT JULY 31, 2011                                                                |   |                | 1,285   |   |                | $      | 13      |                |   |   | 6,924                    |   |   | $               | 69      |   |                                |   | 1,091   |               |   | $      | 11                    |   |   | $                  | 56,826  |   |   | $ | (1,070 | ) |   | $ | 208 |   |   | $ | (42,114 | ) |   | $ | 508 |   |   | $ | 14,451 |   |

----

| Fiscal Year ended July 31,(in thousands)                                          |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Operating activities                                                              |   |   |   |   |   |   |
| Net Income                                                                        |   | $      | 4,426  |   |   | $      | 1,385 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Loss from discontinued operations                                                 |   |   | -      |   |   |   | 623 |   |
| Depreciation and amortization                                                     |   |   | 753    |   |   |   | 859 |   |
| Bad debt                                                                          |   |   | 84     |   |   |   | 63 |   |
| Gain on sale of WMET                                                              |   |   | -      |   |   |   | (1,599 | ) |
| Stock-based compensation                                                          |   |   | 275    |   |   |   | 357 |   |
| Change in assets and liabilities:                                                 |   |   |   |   |   |   |   |   |
| Trade accounts receivable                                                         |   |   | (1     | )      |   |   | 221 |   |
| Inventory, prepaid and other assets                                               |   |   | (2,567 | )      |   |   | (62 | ) |
| Trade accounts payable, accrued expenses, and other current liabilities           |   |   | 253    |   |   |   | 391 |   |
| Income tax payable                                                                |   |   | (319   | )      |   |   | 80 |   |
| Deferred revenue                                                                  |   |   | (87    | )      |   |   | 306 |   |
| Net cash provided by operating activities                                         |   |   | 2,817  |   |   |   | 2,624 |   |
| Investing activities                                                              |   |   |   |   |   |   |   |   |
|     Capital expenditures                                      |   |   | (363   | )      |   |   | (416 | ) |
|     Purchase of IDW non-controlling interest                  |   |   | -      |   |   |   | (414 | ) |
|     Payments received on notes receivable                     |   |   | 321    |   |   |   | — |   |
|     Proceeds from sale of WMET                                |   |   | -      |   |   |   | 1,221 |   |
| Net cash (used in) provided by investing activities                               |   |   | (42    | )      |   |   | 391 |   |
| Financing activities                                                              |   |   |   |   |   |   |   |   |
|     Dividend paid                                             |   |   | (1,997 | )      |   |   | (2,581 | ) |
|     Repurchases of Class A and Class B common stock           |   |   | -      |   |   |   | (1,070 | ) |
|     Distributions to holders of non-controlling interests     |   |   | (17    | )      |   |   | (1,039 | ) |
|     Funding provided by IDT Corporation, net                  |   |   | -      |   |   |   | 2,372 |   |
|     Repayments of capital lease obligations                   |   |   | (276   | )      |   |   | (246 | ) |
| Net cash used in financing activities                                             |   |   | (2,290 | )      |   |   | (2,564 | ) |
| Discontinued operations                                                           |   |   |   |   |   |   |   |   |
|      Net cash used in operating activities               |   |   | -      |   |   |   | (412 | ) |
|      Net cash used in investing activities               |   |   | -      |   |   |   | (3 | ) |
| Net cash used in discontinued operations                                          |   |   | -      |   |   |   | (415 | ) |
|                                                                              |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                         |   |   | 485    |   |   |   | 36 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                  |   |   | 6,516  |   |   |   | 6,480 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                        |   | $      | 7,001  |   |   | $      | 6,516 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                  |   |   |   |   |   |   |   |   |
|      Cash payments made for interest                     |   |   | 27     |   |   |   | 109 |   |
|      Cash payments made for income taxes                 |   |   |   |   |   |   | 1 |   |
| Supplemental schedule of non cash  investing and financing activities   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment through capital lease obligations             |   |   | 351    |   |   |   | - |   |
| Receipt of note receivable as part of sale of WMET                                |   |   | -      |   |   |   | 2,400 |   |

----

| ●   | CTM Media Group (“CTM”), the Company’s brochure distribution company and other advertising-based product initiatives focused on small to medium sized businesses; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The Company’s approximately 77% interest in Idea and Design Works, LLC (“IDW”), which is a comic book and graphic novel publisher that creates and licenses intellectual property. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Fiscal Year ended July 31 (in thousands) |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Basic weighted-average number of shares       |   |   | 8,323  |   |   |   | 6,188 |   |
| Effect of dilutive securities:                |   |   |   |   |   |   |   |   |
| Non-vested restricted common stock            |   |   | -      |   |   |   | 1,651 |   |
| Diluted weighted-average number of shares     |   |   | 8,323  |   |   |   | 7,839 |   |

----

| Fiscal Year ended July 31 (in thousands) |   | Balance atbeginning ofyear |   |   | Additionscharged torevenues |   |   | Actual returns |   |   | Balance atend of year |   |
|-----------------------------------------------|--------|---------------------------------|--------|--------|----------------------------------|--------|--------|----------------|--------|--------|--------------------------------------|--------|
| 2011                                          |   |                            |   |   |                             |   |   |           |   |   |                                 |   |
| Reserves deducted from accounts receivable:   |   |                            |   |   |                             |   |   |           |   |   |                                 |   |
| Allowance for sales returns                   |   | $                               | 165    |   |                             | $      | 3,565  |           |   | $      | (3,480                               | )      |   | $ | 250 |   |
| 2010                                          |   |                            |   |   |                             |   |   |           |   |   |                                 |   |   |   |   |   |
| Reserves deducted from accounts receivable:   |   |                            |   |   |                             |   |   |           |   |   |                                 |   |   |   |   |   |
| Allowance for sales returns                   |   | $                               | 374    |   |                             | $      | 3,305  |           |   | $      | (3,514                               | )      |   | $ | 165 |   |

| Fiscal Year ended July 31 (in thousands) |   | Balance atbeginning ofyear |   |   | Additionscharged tocosts andexpenses(1) |   |   | Deductions(2) |   |   | Balance atend of year |   |
|-----------------------------------------------|--------|---------------------------------|--------|--------|----------------------------------------------|--------|--------|---------------|--------|--------|--------------------------------------|--------|
| 2011                                          |   |                            |   |   |                                         |   |   |          |   |   |                                 |   |
| Reserves deducted from accounts receivable:   |   |                            |   |   |                                         |   |   |          |   |   |                                 |   |
| Allowance for doubtful accounts               |   | $                               | 778    |   |                                         | $      | 84     |          |   | $      | (158                                 | )      |   | $ | 704 |   |
| 2010                                          |   |                            |   |   |                                         |   |   |          |   |   |                                 |   |   |   |   |   |
| Reserves deducted from accounts receivable:   |   |                            |   |   |                                         |   |   |          |   |   |                                 |   |   |   |   |   |
| Allowance for doubtful accounts               |   | $                               | 673    |   |                                         | $      | 277    |          |   | $      | (172                                 | )      |   | $ | 778 |   |

| (1) | Includes expense of discontinued operations of $356 and in Fiscal 2010. |
|-----|-------------------------------------------------------------------------|

| (2) | Uncollectible accounts written off, net of recoveries. |
|-----|--------------------------------------------------------|

----

| Year Ended July 31,                          |   | 2011           |    |   | 2010   |   |
|----------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                         |   | (in thousands) |    |
| Revenue                                      |   | $              | — |   |   | $      | 411 |   |
| Loss before income taxes and net loss . |   |           | -       |   |   |   | (623 | ) |

----

| July 31 (in thousands)          |   | 2011   |   |   | 2010   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| Trade accounts receivable            |   | $      | 4,336  |   |   | $      | 4,439 |   |
| Less allowance for sales returns     |   |   | (249   | )      |   |   | (165 | ) |
| Less allowance for doubtful accounts |   |   | (704   | )      |   |   | (778 | ) |
| Trade accounts receivable, net       |   | $      | 3,383  |   |   | $      | 3,496 |   |

| July 31 (in thousands) |   | 2011   |   |   | 2010   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Royalty                     |   | $      | 337    |   |   | $      | 505 |   |
| Payroll                     |   |   | 403    |   |   |   | 435 |   |
| Bonus                       |   |   | 430    |   |   |   | 216 |   |
| Other                       |   |   | 631    |   |   |   | 383 |   |
| Total                       |   | $      | 1,801  |   |   | $      | 1,539 |   |

| July 31 (in thousands)                    |   | 2011   |   |   | 2010   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Equipment                                      |   | $      | 6,446  |   |   | $      | 6,094 |   |
| Vehicles                                       |   |   | 2,320  |   |   |   | 2,043 |   |
| Leasehold improvements                         |   |   | 292    |   |   |   | 279 |   |
| Computer software                              |   |   | 959    |   |   |   | 848 |   |
|                                           |   |   | 10,017 |   |   |   | 9,264 |   |
| Less accumulated depreciation and amortization |   |   | (7,996 | )      |   |   | (7,251 | ) |
| Property and equipment, net                    |   | $      | 2,021  |   |   | $      | 2,013 |   |

----

|  (in thousands)                 | AmortizationPeriod |   | GrossCarryingAmount |   |   | AccumulatedAmortization |   |   | NetBalance |   |
|--------------------------------------|--------------------|--------|---------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| As of July 31, 2011:            |               |   |                |   |   |                    |   |   |       |   |
|                                 |               |   |                |   |   |                    |   |   |       |   |
| Amortized intangible assets:         |               |   |                |   |   |                    |   |   |       |   |
| Customer lists                       | 5 years       |   | $                   | 25     |   |                    | $      | (25    | )          |   | $ | — |   |
| Licenses and other intangible assets | 2.5 years     |   |                | 46     |   |                    |   | (10    | )          |   |   | 36 |   |
| Total licenses and other intangibles |               |   | $                   | 71     |   |                    | $      | (35    | )          |   | $ | 36 |   |
|                                 |               |   |                |   |   |                    |   |   |       |   |   |   |   |
| As of July 31, 2010:            |               |   |                |   |   |                    |   |   |       |   |   |   |   |
|                                 |               |   |                |   |   |                    |   |   |       |   |   |   |   |
| Amortized intangible assets:         |               |   |                |   |   |                    |   |   |       |   |   |   |   |
| Customer lists                       | 5 years       |   | $                   | 25     |   |                    | $      | (21    | )          |   | $ | 4 |   |
| Licenses and other intangible assets | 2.5 years     |   |                | 1,138  |   |                    |   | (1,125 | )          |   |   | 13 |   |
| Total licenses and other intangibles |               |   | $                   | 1,163  |   |                    | $      | (1,146 | )          |   | $ | 17 |   |

| Fiscal Year Ended July 31 (in thousands)                             |   | 2011   |    |   | 2010   |   |
|---------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets:                                                      |   |   |    |   |   |   |
| Bad debt reserve                                                          |   | $      | 42      |   |   | $      | 64 |   |
| Accrued expenses                                                          |   |   | 86      |   |   |   | 93 |   |
| Exercise of stock options and lapsing of restrictions on restricted stock |   |   | (165    | )      |   |   | (275 | ) |
| Impairment                                                                |   |   | 12,609  |   |   |   | 12,609 |   |
| Net operating loss                                                        |   |   | 2,401   |   |   |   | 4,243 |   |
| Total deferred tax assets                                                 |   |   | 14,973  |   |   |   | 16,734 |   |
| Valuation allowance                                                       |   |   | (12,711 | )      |   |   | (16,734 | ) |
| NET DEFERRED TAX ASSETS                                                   |   |   | 2,262   |   |   | $      | — |   |

| Fiscal Year ended July 31 (in thousands)  |   | 2011   |   |   | 2010   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Current:                                  |   |   |   |   |   |   |
| Federal                                   |   | $      | 35     |   |   | $      | — |   |
| State and local                           |   |   | (260   | )      |   |   | 56 |   |
| Foreign                                   |   |   | 30     |   |   |   | 35 |   |
|                                      |   | $      | (195   | )      |   | $      | 91 |   |
| Deferred:                                 |   |   |   |   |   |   |   |   |
| Federal                                   |   | $      | (1,815 | )      |   | $      | - |   |
| State and local                           |   |   | (435   | )      |   |   | - |   |
|                                      |   | $      | (2,250 | )      |   | $      | - |   |
| Provision for (benefit from) income taxes |   | $      | (2,445 | )      |   | $      | 91 |   |

----

| Fiscal Year ended July 31 (in thousands)           |   | 2011   |    |   | 2010   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| U.S. federal income tax at statutory rate          |   | $      | 587     |   |   | $      | (495 | ) |
| Change in valuation allowance                      |   |   | ( 2,842 | )      |   |   | 495 |   |
| Foreign tax rate differential                      |   |   | 35      |   |   |   | 35 |   |
| State and local income tax, net of federal benefit |   |   | (260    | )      |   |   | 56 |   |
| Other                                              |   |   | 35      |   |   |   | — |   |
| PROVISION FOR INCOME TAXES                         |   | $      | (2,445  | )      |   | $      | 91 |   |

| Year ended July 31 (in thousands)                            |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance at the beginning of the year (excludes interest)     |   | $      | 625    |   |   | $      | 579 |   |
| Additions based on tax positions related to the current year |   |   | --     |   |   |   | — |   |
| Additions for tax positions of prior years                   |   |   | 45     |   |   |   | 46 |   |
| Reductions for tax positions of prior years                  |   |   | -      |   |   |   | — |   |
| Settlements                                                  |   |   | -      |   |   |   | — |   |
| Lapses of statutes of limitations                            |   |   | (330   | )      |   |   | — |   |
| Balance at the end of the year                               |   | $      | 340    |   |   | $      | 625 |   |

----

----

|  (in thousands)                   |   | Number ofNonvested Shares |    |
|----------------------------------------|--------|--------------------------------|---------|
| Nonvested shares at July 31, 2010 |   |                           | 2,480   |   |
| Granted                                |   |                           | — |   |
| Vested                                 |   |                           | — |   |
| Forfeited                              |   |                           | — |   |
| Nonvested shares at July 31, 2011      |   |                           | 2,480   |   |

|  (in thousands)                                        |   | OperatingLeases |    |   | CapitalLeases |   |
|-------------------------------------------------------------|--------|-----------------|---------|--------|---------------|--------|
| Year ending July 31:                                        |   |            |    |   |          |   |
| 2012                                                        |   | $               | 971     |   |          | $      | 244 |   |
| 2013                                                        |   |            | 701     |   |          |   | 164 |   |
| 2014                                                        |   |            | 653     |   |          |   | 102 |   |
| 2015                                                        |   |            | 611     |   |          |   | 72 |   |
| 2016                                                        |   |            | 412     |   |          |   | 25 |   |
| Thereafter                                                  |   |            | — |   |          |   | — |   |
| Total payments                                              |   | $               | 3,348   |   |          |   | 607 |   |
| Less amount representing interest                           |   |            |    |   |          |   | (22 | ) |
| Less current portion Principal                              |   |            |    |   |          |   | (231 | ) |
| Capital lease obligations—long-term portion Principal |   |            |    |   |          | $      | 354 |   |

----

|                                                                   |   | Fiscal Years ended July 31, |    |
|------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                   |   | 2011                             |    |   | 2010 |   |
| (in thousands)                                                         |   |                             |    |   |   |   |
| Opening Balance                                                        |   | $                                | 38      |   |   | $ | 24,921 |   |
| Payments and credits                                                   |   |                             | (143    | ) |   |   | — |   |
| Billings and Expenses paid by IDT Corporation on behalf of the Company |   |                             | 136     |   |   |   | 1,183 |   |
| Transfer of funds to IDT Corporation, net                              |   |                             | — |   |   |   | (773 | ) |
| Conversion of amount due IDT at Spin-Off                               |   |                             | — |   |   |   | (27,293 | ) |
| Contribution from IDT                                                  |   |                             | — |   |   |   | 2,000 |   |
| Ending Balance                                                         |   |                             | 31      |   |   |   | 38 |   |

----

|  (in thousands)                 |   | CTM    |   |   | IDW    |   |   | Total  |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fiscal Year ended July 31, 2011 |   |   |   |   |   |   |   |   |   |
| Revenues                             |   | $      | 18,448 |   |   | $      | 13,871 |   |   | $ | 32,319 |   |
| Operating income                     |   |   | 615    |   |   |   | 1,251  |   |   |   | 1,866 |   |
| Depreciation and amortization        |   |   | 721    |   |   |   | 32     |   |   |   | 753 |   |
| Total assets at July 31, 2011        |   | $      | 18,593 |   |   | $      | 2,407  |   |   | $ | 21,000 |   |
| Fiscal Year ended July 31, 2010 |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                             |   | $      | 18,562 |   |   | $      | 11,464 |   |   | $ | 30,026 |   |
| Operating income(loss)               |   |   | 1,126  |   |   |   | (388   | )      |   |   | 738 |   |
| Depreciation and amortization        |   |   | 779    |   |   |   | 80     |   |   |   | 859 |   |
| Total assets at July 31, 2010        |   | $      | 12,333 |   |   | $      | 6,068  |   |   | $ | 18,401 |   |

| Fiscal Quarter Ended(in thousands) |   | Revenues |   |   | Direct costof revenues |   |   | Income(loss)fromoperations |   |   | Income(loss)from continuingoperations |   |   | NetIncome(loss) |   |
|------------------------------------|--------|----------|--------|--------|-----------------------------|--------|--------|----------------------------|--------|--------|---------------------------------------|--------|--------|-----------------|--------|
| 2011:                              |   |     |   |   |                        |   |   |                       |   |   |                                  |   |   |            |   |
| October 31                         |   | $        | 8,649  |   |                        | $      | 3,761  |                       |   | $      | 857                                   |   |   | $               | 797    |   |   | $ | 710 |   |
| January 31                         |   |     | 7,677  |   |                        |   | 3,712  |                       |   |   | (32                                   | )      |   |            | (28    | ) |   |   | (144 | ) |
| April 30                           |   |     | 6,791  |   |                        |   | 3,466  |                       |   |   | (490                                  | )      |   |            | (124   | ) |   |   | (164 | ) |
| July 31                            |   |     | 9,202  |   |                        |   | 3,864  |                       |   |   | 1,531                                 |   |   |            | 3,781  |   |   |   | 3,719 |   |
| TOTAL                              |   | $        | 32,319 |   |                        | $      | 14,803 |                       |   | $      | 1,866                                 |   |   | $               | 4,426  |   |   | $ | 4,121 |   |
| 2010:                              |   |     |   |   |                        |   |   |                       |   |   |                                  |   |   |            |   |   |   |   |   |   |
| October 31                         |   | $        | 8,233  |   |                        | $      | 3,749  |                       |   | $      | 1,070                                 |   |   | $               | 807    |   |   | $ | 518 |   |
| January 31                         |   |     | 6,365  |   |                        |   | 3,233  |                       |   |   | (681                                  | )      |   |            | (603   | ) |   |   | (719 | ) |
| April 30                           |   |     | 6,832  |   |                        |   | 3,605  |                       |   |   | (656                                  | )      |   |            | (779   | ) |   |   | (1,059 | ) |
| July 31                            |   |     | 8,596  |   |                        |   | 3,561  |                       |   |   | 1,006                                 |   |   |            | 984    |   |   |   | 2,508 |   |
| TOTAL                              |   | $        | 30,026 |   |                        | $      | 14,148 |                       |   | $      | 739                                   |   |   | $               | 409    |   |   | $ | 1,248 |   |

----