NTS Acquires Customers and Cable Assets in Western Texas

XFONE, Inc. (NYSE Amex and TASE: XFN) (“Xfone” or “the Company”) announced a definitive agreement between its wholly-owned subsidiary, NTS Communications, Inc. (“NTS”) and Reach Broadband, for the purchase of approximately 1,800 cable customers as well as equipment in Brownfield, Anton, Abernathy, Hale Center, Idalou, O’Donnell, Olton, and Tahoka, Texas.

Guy Nissenson, President and CEO of Xfone, stated, “We are pleased to have the opportunity to provide our state of the art Fiber-To-The-Premise (FTTP) Triple Play service to customers in these new markets. We expect to provide these customers with excellent service and the opportunity, over time, to upgrade their subscription to include high speed Internet, Voice and enhanced Video.”

The transaction is expected to close, pending various approvals, on December 1, 2011.

On July 1, 2011, the Company closed its purchase from CoBridge Telecom of approximately 2,400 cable customers as well as equipment in Levelland, Littlefield, Morton, Slaton and Colorado City, Texas.

About XFONE, Inc.

Xfone is a provider of high speed broadband services, including Internet access, digital cable TV programming and local and long distance telephone service to residential and business customers in northern Texas and southeastern Louisiana. Xfone's Fiber-To-The-Premise (FTTP) network provides one of the fastest internet connections available. The Company currently has operations in Texas, Mississippi and Louisiana and also serves customers in Arizona, Colorado, Kansas, New Mexico and Oklahoma. For the company's website, please visit: www.xfone.com.

About Reach Broadband

Reach Broadband offers Cable TV and High Speed Internet service to communities in the southwestern United States.

This press release contains forward-looking statements. The words or phrases "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." XFONE's financial and operational 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 news 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, 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.