Xfone, Inc. (NYSE Amex and TASE: XFN) (“Xfone” or “the Company”) connected its first fiber customer in Slaton, Texas further expanding the Company’s new “PRIDE” fiber-to-the-premise Network.

Xfone’s ongoing fiber build out, when completed, is expected to reach 19 new communities bringing the total FTTP passings to approximately 50,000. The Company is funding the expansion of the fiber network using approximately $100 million in federal stimulus funding.

To date, Xfone has established its FTTP network in Lubbock, Levelland, Smyer, Wolfforth, Littlefield Burkburnett, Brownfield and Whitharral, Texas, providing customers in those communities access to voice, video and internet services using high speed broadband.

Mr. Guy Nissenson, Xfone’s President and CEO, commented, “We are making excellent progress establishing our state of the art fiber network in new communities and are pleased to have begun adding customers in Slaton. We continue to see excellent adoption rates as we bring our high speed triple play offering to new markets, as customers recognize the value and convenience of the high speed bandwidth we provide. Consumers are increasingly reliant on the internet; both in residential and business applications, and the speed and accessibility of our network meets their expectations. Construction of the PRIDE Network continues to move ahead and we look forward to bringing advanced broadband to more customers in the coming weeks.”

Click here to view photos of our first customer in Slaton, Texas

About Xfone, Inc.

Xfone is a provider of high speed broadband services, including Internet access, digital cable TV programming and local and long distance telephone service to residential and business customers in northern Texas and southeastern Louisiana. Xfone's Fiber-To-The-Premise (FTTP) network provides one of the fastest internet connections available. The Company currently has operations in Texas, Mississippi and Louisiana and also serves customers in Arizona, Colorado, Kansas, New Mexico and Oklahoma. For the company's website, please visit: www.xfone.com.

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 U.S. Securities and Exchange Commission.

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