XFONE TO APPLY FOR IRAELI
LICENSE
If License is Granted, xfone
Will Compete in an Approximate $330 Million
Israel Local Market
April 23, 2004
CARSON CITY, Nev. & TEL AVIV, Israel--(BUSINESS WIRE)--April 23, 2004 -- xfone, Inc. is pleased to announce that its Board of Directors has decided to apply for a license with the Government of Israel to provide International Telecom Services in the State of Israel.
The Government of Israel, Ministry of Communication, recently released the rules and regulations to become an International Telecom Service provider in Israel. Thus far, only three international service providers have the governmental license to operate in Israel: Bezeq International, Barak, and Golden Lines.
The Deputy Prime Minister and Minister of Communication, Mr. Ehud Olmerth, estimated the International Telecom market in Israel is $330,000,000.
Guy Nissenson, President and CEO of xfone, said, “We believe that we can provide Israeli clients with excellent services and significantly lower rates. We shall implement in Israel our business model based on low overhead and automation.”
xfone plans to file its application by May 15, 2004. The Israel Ministry of Communications typically responds within approximately 180 days from the date of an application. According to Ministry of Communications regulations, 26% of xfone Israel is required to be owned by Israeli citizens and residents. xfone is negotiating with potential entities to become its potential local 26% partner in xfone Israel. There is no assurance that such a license will be granted.
Mr. Rafi Dick was elected by xfone’s Board of Directors to be the President of xfone Israel. Rafi Dick served as the Vice President for Marketing of Golden Lines Ltd and as sales manager for Hertz Israel.
Guy Nissenson added: "We shall utilize in Israel our valuable assets developed in London, the proprietary software that makes us so efficient and the superb agreements we have with our suppliers. We shall continue to look for business opportunities and try to duplicate our business model in new markets."
xfone, Inc. is a publicly traded international low-cost high-profit-margin telecommunications provider operating in the UK. The concept is implemented by maintaining minimal operating expenses utilizing automation and a Web based interface.
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 across Europe, Asia, North, Central and South America, Australia and Africa.
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 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 |
|
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