XFONE's Israel '018' International Long Distance Calling Service Grows 50% From January to February 2005 Monthly Call Minutes on Pace to Exceed Three Million; Customers Up to Approximately 30,000 LONDON and TEL AVIV, Israel, March 1 /PRNewswire-FirstCall/ -- 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 has continued to show strong growth, with call minutes increasing nearly 50% from January 2005 to February 2005. Based on these results, XFONE Communication is on pace to exceed three million call minutes per month. XFONE Communication has currently 30,000 customers (registered and unregistered). XFONE, Inc.'s President and CEO, Guy Nissenson, noted, "Once again, we are very pleased that our sales and marketing efforts in Israel have continued to result in broader market adoption of our '018' international long distance calling services. Although we have only been operational in Israel for two and a half months, the rate at which we are growing on a month-over-month basis is well exceeding our original forecasts. Perhaps most noteworthy is that XFONE Communication remains firmly on pace to possibly achieve positive cash flow and net profitability well ahead of plan." 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'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 Communication also permits users to predetermine the cost per minute by dialing "01800." Moreover, XFONE Communication 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 who 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 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. 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 change technology and evolve 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, 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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