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05-03-2007 XFN - Xfone Inc.

CURRENT PRICE: $3.11

TYPE OF PLAY: MOMENTUM/FUNDAMENTAL ANALYSIS

* On a GBP basis, year over year revenue increased 37% in 2006. On a USD basis, that gain was 56% ($37,971,037 versus $24,346,215) resulting in another profitable outcome. Guidance given to "to achieve continued sequential organic revenue growth"

* Increasing gross margins 42% in 2006 from 34% in 2005

* Multinational company within United Kingdom, the United States and Israel, one of only four companies licensed to provide International services in Israel. Of particular note is the 75% increase in USA operations of which XFN derives 41% of their revenue stream

* $8.8 million in cash and accounts receivable and total shareholders' equity of $19.5 million as of December 31, 2006

*Price/Sales ratio is ~ 0.92 while industry peers such as AT&T trade at 3 times sales



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 America, South America, Australia and Africa .

Xfone has been committed to its goal of ultimately being a multi-hundred million dollar company and has been continually growing at a rapid pace since its inception in 2000. The foreign diversification of Xfone's business also protects it against the potential weakening of the U.S. Economy.

LINKS FOR FURTHER READING:
XFN homepage
SEC filings for XFN
General XFN statistics