Xfone Completes Buy

JACKSON, Miss. -- XFONE, Inc. (AMEX:XFN)(TASE:XFN), an international diversified communications services company today announced that its wholly-owned subsidiary, Swiftnet Limited, has increased its holding in Auracall from 32.5% to 100%. Auracall is a profitable and growing telecommunication service provider specializing in supplying solutions for ethnic communities in the UK making low cost international calls home.

Auracall serves over 300,000 customers every month through an innovative range of services allowing customers to make low cost international calls from both landlines and mobile phones. Customers pay for calls through premium rate texts (the T-Talk service), calling a premium rate top-up number (the Crazytel service) or by dialing an 08 access number (the FreeTime service). Auracall sells primarily through a network of over 100 loyal agents.

Guy Nissenson, President and CEO of XFONE, Inc. noted, “In 2001 we were a founding partner in Auracall and the company has exceeded our original growth expectations. Auracall has become a recognized brand and a leader in the markets it serves and we were delighted to be offered an opportunity to purchase 100% of the business. The acquisition is immediately accretive and is expected to support Xfone’s EBITDA growth targets.”

XFone Inc. (OTC: XFNE)