Subsequent Month-Over-Month Growth of XFONE '018' Continues to Outpace Original Expectations Customers Up Approximately 25%; Monthly Call Minutes Up Approximately 7% LONDON and TEL AVIV, Israel, May 2 /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 outpace original ramp- up expectations. As of April 30, 2005, XFONE 018 had logged approximately 75,000 registered and unregistered customers since first launching operations in mid-December 2004, which reflects a 25% increase in the number of new customers from March 2005 to April 2005. In addition, from March 2005 to April 2005, call minutes increased by more than 7%, despite the impact of reduced usage of international communication services by Ultra Orthodox and business customers due to the seven-day Jewish holiday of Passover in the last week of April. Beginning in January of 2005, XFONE, Inc. began reporting monthly results of XFONE 018 to provide Company shareholders with heightened insight into the growth of its new Israel-based subsidiary and to help shareholders carefully track and assess the subsidiary's operational progress. Guy Nissenson, President and Chief Executive Officer of XFONE, Inc., noted, "We knew when we launched XFONE 018 that our overriding value proposition -- combining low cost with outstanding quality of service -- would ultimately win us a meaningful share of the sizable long distance calling market in Israel. What has both surprised and delighted us is the rapid rate at which long distance calling customers are selecting '018' as their preferred provider. As a result, XFONE 018 continues to outpace our initial growth expectations on a month-over-month basis." 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. XFONE 018 is one of 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. For More Information, Please Contact: 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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