Press Release

Lubbock, TX – January 18, 2012 – Xfone, Inc. (NYSE Amex and TASE: XFN) (“Xfone” or “the Company”) connected its first fiber customer in Slaton, Texas further expanding the Company’s new “PRIDE” fiber-to-the-premise Network.

Xfone’s ongoing fiber build out, when completed, is expected to reach 19 new communities bringing the total FTTP passings to approximately 50,000. The Company is funding the expansion of the fiber network using approximately $100 million in federal stimulus funding.

To date, Xfone has established its FTTP network in Lubbock, Levelland, Smyer, Wolfforth, Littlefield Burkburnett, Brownfield and Whitharral, Texas, providing customers in those communities access to voice, video and internet services using high speed broadband.

Mr. Guy Nissenson, Xfone’s President and CEO, commented, “We are making excellent progress establishing our state of the art fiber network in new communities and are pleased to have begun adding customers in Slaton. We continue to see excellent adoption rates as we bring our high speed triple play offering to new markets, as customers recognize the value and convenience of the high speed bandwidth we provide. Consumers are increasingly reliant on the internet; both in residential and business applications, and the speed and accessibility of our network meets their expectations. Construction of the PRIDE Network continues to move ahead and we look forward to bringing advanced broadband to more customers in the coming weeks.”

Press Release

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