XFONE Announces Agreement Between Story Telecom and e-pay Company's U.K. Operations Expands Prepaid Phone Services Through e-pay's Network; LONDON, Feb. 28 /PRNewswire-FirstCall/ -- XFONE, Inc. today announced that the Company's strategic partner, Story Telecom, Inc., a leading marketer and distributor of prepaid phone services in the United Kingdom, has signed an agreement with e-pay U.K. to offer prepaid phone cards to consumers through e- pay's established network of point-of-sale (POS) terminals located throughout the country. XFONE provides Story Telecom with all switching and system support for its prepaid telephony products. "This new venture with Story Telecom is a prime example of how we are working with our retail network to greatly expand service offerings at the POS terminal level," stated Andrew Dellow, Sales Director at e-pay U.K. "Story Telecom's products will provide e-pay's retailers with increased revenue opportunities while also empowering them to better serve their customers. We plan to offer the widest possible range of Story Telecom's products, including standard prepaid service for both landline and mobile phone customers," added Dellow. Nir Davison, CEO of Story Telecom, noted, "We are very pleased to be partnering with e-pay, one of the largest electronic transaction providers in the world. Their impressive U.K. installed retail base provides us with a significant and immediate opportunity to capture a greater share of the prepaid phone card market. When added to our existing distribution network, Story Telecom becomes one of the largest electronic suppliers of prepaid phone cards in the U.K. with more than 25,000 points of presence." About XFONE, Inc. A U.S.-domiciled corporation, XFONE, Inc. is an international voice and data communications services provider with operations in the United States, United Kingdom, and Israel, and offers a wide range of services, which include: local, long-distance and international telephone services, prepaid and postpaid calling cards; cellular services; VOIP services; reselling opportunities; and email and fax broadcasting services. The Company serves customers in 75 countries across Europe, Australia, North America, South America, Asia and Africa. About Story Telecom, Inc. Story Telecom, Inc. specializes in prepaid telecommunications services for mobile customers and possesses a significant share of the prepaid telephony market in the United Kingdom. Story Telecom currently has a network of 100 plus distributors, 250,000 registered mobile users and more than 35,000 retail points of presence within the United Kingdom. Collectively offering over 30 different prepaid card products, Story Telecom provides consumers with a wide range of tariffs on all targeted international mobile and landline call destinations. About e-pay Limited e-pay, a subsidiary of Euronet Worldwide Inc., is the largest electronic payments processor of prepaid mobile airtime top-up services in the U.K. and Australia. Founded in 1999, e-pay focuses on cash-based recharge, or the "top-up" market, for processing electronic purchases of prepaid mobile airtime and long-distance phone cards. About Euronet Worldwide Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. Through its prepaid subsidiaries-e-pay, PaySpot, transact and Movilcarga-Euronet is the world's largest provider of electronic distribution service, or top-up services, for prepaid mobile airtime. The company has processing centers located in the U.S., Europe and Asia, and processes more than 20 million electronic top-up transactions per month at more than 175,000 points of sale across 85,000 retailers in ten countries. Euronet also operates the largest independent pan-European ATM network, and the largest shared ATM network in India. With corporate headquarters in Leawood, Kansas, USA, Euronet serves clients in more than 65 countries. For more information, visit the company's website at http://www.euronetworldwide.com/. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to the ability to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate, obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; and the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission, including the Registration Statement effective on November 12, 2004. For More Information, Please Contact: Elite Financial Communications Group Stephanie Noiseux, 407-585-1080 DATASOURCE: XFONE, Inc. CONTACT: Stephanie Noiseux of Elite Financial Communications Group, +1-407-585-1080, or Web site: http://www.xfone.com/

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