XFONE's Israel '018' International Long Distance Calling Service Continues to Win New Customers and Increase Market Share Monthly Call Minutes Up Approximately 33%; On Pace to Exceed Four Million; Customers Up 100% to Approximately 60,000 LONDON and TEL AVIV, Israel, April 4 /PRNewswire-FirstCall/ -- XFONE 018 Ltd. (until March 2005 previously named Xfone Communication Ltd.), the majority owned Israel-based subsidiary of XFONE, Inc. (OTC:XFNE) (BULLETIN BOARD: XFNE) , today reported that its "018" international long distance carrier operations in Israel have continued to show strong growth, with call minutes increasing nearly 33% from February 2005 to March 2005. Based on these results, XFONE 018 is on pace to exceed four million call minutes per month -- up from approximately three million in the prior month. As of March 31, 2005, XFONE 018 has logged 60,000 registered and unregistered customers since first launching operations in mid-December 2004, reflecting a 100% increase in the number of new customers since February 2005. XFONE, Inc.'s President and CEO Guy Nissenson noted, "I'm pleased to report that XFONE 018 continues to win new customers and systematically increase our share of the international long distance calling market in Israel. Although we have only been operational in Israel for three and one- half months, the rate at which we are growing on a month-over-month basis is well exceeding our original forecasts. With our recently announced contract signed March 7, 2005, to serve the international long distance calling needs of the more than 7 million international passengers who fly in and out of Tel Aviv's Ben Gurion Airport, Israel's largest international airport, XFONE 018 is quickly gaining broad market awareness. Aside from the revenue opportunity that this agreement represents for us, we believe that the marketing exposure we will receive will be enormous. Being selected to serve the international long distance calling need for the millions of international travelers that pass each year through Israel's largest airport is a strong endorsement of '018' and the numerous benefits our services offer." Continuing, Mr. Nissenson added, "Month over month, XFONE 018 intends to leverage its increasing popularity to grow market share and build 018 into one of the leading international long distance providers in Israel." With no obligations or upfront fees required, international callers located in Israel need only to dial "018" followed by the destination phone number to enjoy the multiple benefits afforded by XFONE 018's carrier system. Offered at a price per minute that is sometimes as much as 50% less than the most competitive carrier in Israel, XFONE 018 also permits users to predetermine the cost per minute by dialing "01800". Moreover, XFONE 018 has established a state-of-the-art web site, found at http://www.018.co.il/ , where users may also access "real time" detailed information relative to pricing, full service offerings, and general information regarding system use. There are only six companies that have been granted international long distance carrier licenses in the State of Israel. About XFONE, Inc. A U.S.-domiciled corporation, XFONE, Inc. is an international voice and data communications services provider with operations in the United Kingdom, the United States 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. This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." XFONE's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. 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: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; 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. Elite Financial Communications Group Stephanie Noiseux 407-585-1080 DATASOURCE: XFONE, Inc. CONTACT: Stephanie Noiseux, Elite Financial Communications Group, +1-407-585-1080, or , for XFONE, Inc. Web site: http://www.xfone.com/ http://www.018.co.il/

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