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Phone: (806) 771-5212
Fax: (806) 788-3398



eXpeTel Communications Expands Service Areas in Southeast


July 24, 2002

JACKSON - eXpeTel Communications, a Flowood-based telecommunications company, announced today that it has expanded its service area across the Deep South and has received approval from state Public Service Commission offices in the states of Louisiana, Florida and Georgia. The Company had already received approval to provide its telecommunications services in Alabama and in Mississippi, where its corporate headquarters resides.

"This expansion is on track with our growth plan to provide competitive local, long distance and data services to both the consumer and business customers within the BellSouth operating territory," said Ted Parsons the Company's Executive Vice President and Chief Marketing Officer. "We will continue with our expansion efforts and should receive approval in the remaining states of North Carolina, South Carolina, Kentucky and Tennessee by year-end 2002 " Parsons continued.

Parsons also stated that the Company is expanding its direct sales force, which sells its competitive telecommunications services to business customers. The direct sales force is complimented by a smaller group of independent agents that make up the Company's alternate channel sales group. The Company also sells its discounted telecommunications services to the consumer market through its mass marketing effort, utilizing telemarketing and direct mail.

About eXpeTel
eXpeTel Communications serves customers in the states of Alabama, Florida, Georgia, Louisiana and Mississippi and is growing rapidly throughout the BellSouth operating territory. A full-service provider of telecommunications products, eXpeTel offers an array of services, including local and long-distance telephone services, high-speed Internet access, and commercial voice and data services. More information about eXpeTel Communications can be accessed on the Internet at www.expetel.com.


About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the Company’s website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "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." The Company's financial 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 press 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, and 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.

For More Information, Please Contact:
U.S. IR Contact Israel IR Contact Xfone Contact
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone:  1-203-972-9200
E-mail: jnesbett@institutionalms.com
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: niv@xfone.com