XFONE, INC. CEO ISSUES LETTER TO SHAREHOLDERS
January 24, 2005
LONDON & TEL AVIV, Israel - (PR Newswire) - January 24, 2005 - In a letter to Company shareholders, Guy Nissenson, Chief Executive Officer of XFONE, Inc. (OTCBB:XFNE), stated:
“In 2004, XFONE firmly established itself as a growing international telecommunications company with an expanding global perspective by establishing our telecom platform in the United States, United Kingdom and Israel. XFONE has continued to demonstrate that, despite prevailing market conditions impacting others within the telecommunications space, telecom can indeed be profitable. In a relatively short time, our management team, through its devotion and vision, has been able to achieve steady, progressive execution of the corporation's growth strategies.
“During 2004, XFONE entered the world’s largest telecommunications market - the United States. We negotiated the acquisition of eXpeTel Communications, a licensed telecom service provider based in Jackson, Mississippi. Although we are still working through the regulatory issues associated with the acquisition and hoping to close the transaction in the first quarter of 2005, we have already assumed the day-to-day operations of eXpeTel through a management agreement. Looking ahead, we intend to leverage this $5.5 million operation to gain greater market penetration in the US market, growing our presence through the acquisition of other regional service providers.
“In December 2004, XFONE successfully launched its international carrier business in Israel's growing $330 million telecommunications market. As one of only six licensed operators in this growing marketplace, we have long understood and appreciated the opportunity that Israel represents for XFONE’s future growth. Following only a month of our ‘018’ system operations, revenues have well exceeded our initial expectations and are trending steadily upward with each passing week. Consequently, we anticipate that our Israel operations will contribute measurably to XFONE’s 2005 revenue growth.
“It is important to note that our global expansion efforts have not diminished our focus on our traditional business in the United Kingdom. I am pleased to report that our United Kingdom operations have continued to perform well in 2004, achieving approximately 50% growth over the previous year.
“Presently XFONE has over 65 employees based in three countries - each of them dedicated and skilled and led by an exceptionally qualified and devoted management team. To all of them and to you, my fellow shareholders, I would like to extend my sincere appreciation for your unwavering support and my best wishes for our continued good fortune in 2005,” concluded Nissenson.
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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