XFONE USA Chooses GENBAND and Solunet/Dynavar for Advanced Packet Telephone Infrastructure

October 12, 2006, Plano, TX - GENBAND™ Inc., a leading provider of IMS-based telecommunications applications and infrastructure products enabling converged IP multimedia services, announced today that XFONE, USA, Inc., the wholly-owned subsidiary of XFONE, Inc. (AMEX: XFN), has chosen GENBAND’s G6® Universal Media Gateway through Solunet/Dynavar Corporation, who will provide integration services for XFONE USA’s VoIP and VoATM deployment in the US.

XFONE, Inc., through its subsidiary companies, provides a comprehensive range of voice, video and data services to over 200,000 customers worldwide. The Company has growing operations on three continents, offering local, long distance, and International calls; as well as Internet services, calling cards, messaging services and cable TV from its own state of the art facilities. As a result of recent regulatory changes in the U.S., XFONE USA moved from UNE-P to UNE-L services and deployed packet voice with both VoATM & VoIP networks. XFONE USA chose GENBAND’s G6 Universal Media Gateway to help augment and evolve their existing network infrastructure to accommodate the regulatory changes while establishing an open architecture capable of delivering enhanced IP services. Solunet/Dynavar, a strategic partner of GENBAND, was the integrator and network consultant to XFONE USA.

“We chose the G6 because of its versatility and open architecture,” said Paul Bennett, senior vice president of operations from XFONE USA, Inc. “The G6’s architecture is truly carrier class, as evidenced by its deployment by some of the largest service providers in the world. At the same time, it is a very open architecture allowing us to deliver enhanced packet telephony via VoIP and VoATM to our customers, and it can be easily augmented with enhanced IP applications servers to deliver new and differentiated services.”

"We are excited about being a part of XFONE USA’s rapid growth," said Charles Vogt, GENBAND's president and CEO. "XFONE USA is an innovator in converged network solutions for both residential and business markets. By using the G6 Universal Media Gateway as the foundation to deliver VoIP, XFONE USA will be able to easily and quickly deliver enhanced IP services to increase penetrations with further service differentiation."

"XFONE USA has used advanced technology to successfully deliver unique multi-service solutions to their customers for some time," said Phil O’Reilly, CEO of Solunet/Dynavar Corporation. "We look forward to helping XFONE USA continue its leadership and growth with the integration of GENBAND's G6 Universal Media Gateway for the delivery of packet VoIP services and as a central platform for differentiated, multi-media solutions."

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, the United Kingdom and Israel that offers a wide range of services, which include: local, long distance and international telephone services; prepaid and postpaid calling cards; cellular services; VoIP services; reselling opportunities; and email and fax broadcasting services. The Company serves customers across Europe, Australia, North America, South America, Asia and Africa.

About Solunet/Dynavar Corporation

Dynavar Corporation is a leading technology integrator and solutions provider specializing in a full range of integrated communication solutions that drive next generation networks for the service provider market. Dynavar was acquired as a wholly owner subsidiary of Solunet, Inc. in August, 2006. Together Solunet and Dynavar’s comprehensive voice, data, and video networking solutions enable customers around the world to build converged networks and to offer network-based multi-media services. Solunet/Dynavar now serves clients throughout all of North America, Latin America, and the Caribbean. Their long-term partnerships with the industry’s leading manufacturers, combined with comprehensive technical expertise and services, allow the combined company to deliver the most innovative, reliable, and cost-effective solutions to its customers. For more information on Solunet/Dynavar, please visit www.solunet.com or www.dynavar.com.

About GENBAND

GENBAND is the leading supplier of IP multimedia application and infrastructure products and solutions for a diverse set of VoIP and IMS networks worldwide. These IMS-ready applications and solutions enable wireline, cable, and wireless service providers to rapidly deploy new multimedia services, while providing a foundation to transition legacy networks to next generation networks. GENBAND has deployed its IP Multimedia products and technology to over 100 customers with more than 750 deployments, across three continents. Headquartered in Plano, Texas, GENBAND has research and development facilities in Fremont, California; Austin and Plano, Texas; and New Delhi, India. Additional information is available at www.genband.com.

Contacts:
Noah Sessions
GENBAND Inc.
+1.972.265.3664 (office)
noah.sessions@genband.com