Xfone Announces Rights Offering

Xfone, Inc.

announces that its Board of Directors has approved a direct rights offering in which Company stockholders will receive non-transferable and non-tradable rights to purchase one (1) additional share of the Company's common stock, par value $0.001 for each share owned as of the record date, for a subscription price of $0.30 per share. The Company will set the record date in accordance with NYSE Amex LLC guidelines and in conjunction with the date of effectiveness of the registration statement under the Securities Act of 1933, as amended, relating to the Rights Offering that the Company will file with the U.S. Securities and Exchange Commission. The Company estimates that it will raise approximately $5 million in the Rights Offering. Xfone stockholders who exercise their Rights in full may also exercise an over-subscription privilege to purchase, on a pro rata basis, a portion of the unsubscribed shares, at the same price of $0.30 per share, subject to certain limitations. Each subscribing stockholder will also have a “step-up privilege” allowing such stockholder to subscribe for one (1) additional share of common stock in lieu of any fractional share that would have been granted in the Rights Offering.