XFONE, INC. ANNOUNCES PURCHASE BY NEW INVESTOR OF EXISTING SHAREHOLDER' S INTEREST OF 26% IN ISRAEL SUBSIDIARY
XFONE Communication Ltd.
Prepares December Launch of
International Telecom Services in Israel
November 30, 2004
LONDON & ISRAEL – (BUSINESS WIRE) – November 30, 2004 – XFONE, Inc. (OTCBB:XFNE) (“XFONE” or “the Company”), a provider of international voice and data communications services, today announced the purchase by Mr. Ilan Shoshani, a private Israel-based investor, and his company Newcall Ltd., of H.S.N. Communication Investments Ltd.'s 26% interest of XFONE Communication Ltd., a majority-owned subsidiary of XFONE, Inc. ("the Subsidiary"). In July 2004, XFONE Communication was awarded a license by the State of Israel to provide international telecom services in Israel. The Subsidiary is one of only six international carriers in Israel and is expected to initiate its services in Israel in December utilizing the three-digit dialing code of “018”.
The terms of the transaction, which was subject to approval by the Ministry of Communications of the State of Israel, provided for the shares in the Subsidiary to be held by Newcall Ltd., a company owned by Mr. Shoshani and his wife, and for Mr. Shoshani to replace an existing 10 million New Israeli Shekel (approximately US$2.3 million) bank guarantee which was issued in accordance with Regulation 22 of the International Operators Regulations and the Subsidiary’s license. Further, Mr. Shoshani is extending a shareholder loan to the Subsidiary for the New Israeli Shekel equivalent of US$400,000.
Mr. Shoshani has been appointed to serve as a Director of XFONE Communication Ltd. Mr. Shoshani has been in the field of telecommunications in Israel since 1989, particularly in the area of NTP (network terminating point) services for Coral switchboards and value added services for business customers.
Commenting on the transaction, Guy Nissenson, President and Chief Executive Officer of XFONE, Inc., noted, “As we make final preparations for launching our international carrier system in Israel, we are delighted to welcome Mr. Shoshani as a 26% stakeholder and Director in XFONE Communication. We greatly value the vote of confidence Mr. Shoshani has shown in our ability to capitalize on the opportunity to win a notable share of this US$330 million and growing market and look forward to his Board contribution as we execute our exciting business plan. This transaction of XFONE Communication represents what could be one of XFONE, Inc.'s areas of growth over the coming years.”
In conjunction with this transaction, the Company is in verbal agreement to transfer 5% of the Company's ownership to a company that owns 20% of H.S.N. Communication Investments Ltd. This will leave the Company with a majority ownership of a 69% interest in the Subsidiary. Such agreement is subject to the Ministry of Communications’ approval.
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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