2506 Lakeland Drive
Suite 100
Jackson, MS 39232		 phone:  985.310.1008
fax:  985.345.0723



Email storage upgrade


April 20, 2007

Beginning on Friday, April 20, 2007, we will be starting the first round of upgrades to our customer email systems. Once all of the upgrades have been completed, all customer email will be hosted on the same platform and will allow us to provide more robust spam and virus filtering as well as offer more customer control over your email.

During the first phase, we will be upgrading the storage system that holds all email stored on the mail servers. From 11:30 pm, Friday, April 20, to approximately 12:30 am, Saturday, April 21, access to your mail stored on our servers will be unavailable. Outgoing mail may also be unavailable during this time. Any mail sent to you during this time will be queued and delivered once the system is available.

After 12:30 am, Saturday, April 21, the mail servers will be using the new storage system and you should be able to send and receive mail as you normally would. At this time, any email that was on the old storage system at the time of the upgrade will be copied to the new storage system. Due to the volume of the mail stored on our servers, we expect this process to take 1-2 days. To reduce the inconvenience to our customers, we will be copying all email less than a day old, first. That copy should be completed by 9 am Saturday morning. After that, all older mail will be copied over the course of the weekend. We expect the upgrade to be completed Sunday night, April 22. During the copy, any new mail sent to you will be delivered immediately.

After the upgrade is completed, there will be no difference in your email account. No loss of email is expected from this upgrade.

We appreciate your patience and understanding during this upgrade. If you have questions regarding this maintenance event, please contact the Xfone USA Customer Service Department at 800-310-4481 or e-mail info@xfoneusa.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