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XFONE USA DONATES TELEPHONE SERVICES FOR
NEW ORLEANS CHILDREN’S HOSPITAL TELETHON


June 1, 2006

JACKSON, MS and NEW ORLEANS, LA. – June 1, 2006 – Xfone USA, Inc. the wholly owned U.S. subsidiary of XFONE, Inc. (AMEX:XFN), an international diversified communications services company, today announced its continued support of the Children’s Miracle Network Telethon to take place in New Orleans and will air live on WDSU Newschannel 6 beginning at 5:30 p.m. on Saturday June 3 and will conclude at 5:00 p.m. on Sunday June 4.

Xfone USA merged with I-55 Telecommunications in March 2006, where I-55 had supported the function in the past. “With all of the devastation and the difficult times for all of us amidst our own recovery efforts from the damage caused from Hurricane Katrina, we felt that we needed to continue to be a part of this support in providing care for the children in south Louisiana and the Mississippi Gulf Coast,” said Ted Parsons, executive vice president and chief marketing officer of Xfone.

When Mayor Nagin called for a mandatory evacuation of New Orleans on September 1, 2005 no one could have known the devastation that would come with Hurricane Katrina. “Over a period of 20 hours and with no help from any government agency, we evacuated 100 patients and their families to other children’s hospitals and relocated our offices to Baton Rouge” said Roger Gorman, Director of Development for Children’s Hospital in New Orleans. “We quickly opened outreach clinics in Baton Rouge and in Lafayette to provide care to children of displaced families, and those clinics remain open today.”

Through it all, Children’s Hospital has maintained their policy of never turning away a child who needs the care offered – even now more than ever the children of New Orleans and the Gulf Coast of Mississippi need their care. That is why this Telethon means so much more and this year will be even more challenging to surpass the $1,000,000 mark achieved in 2005.

Children’s Hospital is a free-standing, 201-bed general pediatric hospital with a medical staff of 400 physicians practicing in over 40 pediatric specialties. Last year, even though the hospital was closed for 6 weeks after Katrina, the hospital recorded 138,000 patient visits, with children coming from 63 of the 64 parishes in Louisiana, 44 states and 7 foreign countries.

“What a great time to be able to help out a worthy cause – our children - and Xfone is happy to be able to do our part,” said Parsons.


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