February 19, 2009

Lubbock, TX –February 19, 2009– Guy Nissenson, CEO of XFONE, Inc. (NYSE Alternext U.S. and TASE: XFN) (“XFONE”), made the following comments concerning the signing of the $790 billion Economic Stimulus package: “We are very pleased with the passage of this bill. The economic stimulus package incorporates the need for investment in broadband through significant allocation to expand broadband internet access so that business in rural and other underserved areas can link to the global economy. At XFONE, we are well aware of the need for improved communications infrastructure for rural and underserved markets. A cornerstone of our long term growth plan is to provide improved voice, video and data services to these markets across the U.S. through Fiber-to-the-Premise (FTTP).”

XFONE, through its wholly owned subsidiary NTS Communications, Inc., is currently building out its FTTP network for Levelland and Smyer,Texas. This buildout has been financed by a low interest, non recourse Federal Loan from the Department of Agriculture Rural Utility Service.

Mr. Nissenson continued, “The Levelland and Smyer project is progressing well and we expect to use this as a template for additional projects in the U.S. Our service capability includes extremely high bandwidth, providing data speeds of up to 100 megabits per second per user, and provides underserved communities a valuable link to today’s high-speed marketplace. With this track record and expertise in place, we are in the process of submitting applications for additional rural markets.”

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 States, United Kingdom, and Israel that offers a wide range of services, which include: local, long distance and international telephony services; video; 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
John Nesbett/Jennifer Beloeau Institutional Marketing Services (IMS) Phone: 1.203.972.9200. E-mail: jnesbett@institutionalms.com
Xfone Contact
Niv Krikov Chief Financial Officer Phone:  + 972.39254446 (Israel) E-mail: E-mail: niv@xfone.com