**FORM      10-KSB/A**

**(Amendment      No. 1)**

** DECEMBER 31, 2006**

** **
**001-32521**

**XFONE,      INC.**

| **Nevada **                                                                                                    | **11-3618510 **                                              |
|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|    (State                or other jurisdiction of                incorporation or organization) | (I.R.S.                EmployerIdentification                No.) |

**2506      Lakeland Drive, Suite 100**

**Flowood,      MS 39232,USA**

**601.983.3800**

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***EXPLANATORY      NOTE***

This      amendment on Form 10-KSB/A (Amendment No. 1)      amends the Annual Report on Form 10-KSB of Xfone, Inc. (the “Company”) for      the fiscal year ended December 31, 2006, which was filed with the U.S.      Securities and Exchange Commission on March 30, 2007, and is being filed solely      to revise Item 10 of Part III of Form 10-KSB to reflect changes made to the      executive compensation disclosure requirements.

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**PART      III**

**ITEM      10.                      EXECUTIVE      COMPENSATION**

**Summary      Compensation Table for 2006**

|  **Name                and****Principal                Position**                                                                       |  **Year** |   | **Salary****($)** |    |   | **Bonus****($)** |   |   | **Stock                Awards****($)** |   |   | **Option                Awards****($)** |   |   | **Non-****Equity                Incentive Plan Compensation****($)** |   |   | **Non-****qualified                Deferred Compensation Earnings****($)** |   |    | **All                Other Compensation(10)****($)** |   |   | **Total****($)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|-------------------|---------|--------|------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|---------|------------------------------------------------------|--------|--------|------------------|--------|
|  **Abraham                Keinan**,Chairman                of the Board                                                                 |  2006     |   |              | 94,032  | (1)    |             |   | ---    |                                   |   |   | -                                       |   |   |                                                                 | -      |   |                                                                       |   | 100,710 | (2)                                                  |   |   | -                |   |   |   | 35,920 | (3) |   |   | 230,662 |   |
|  **Guy                Nissenson**,President,                CEO,  Treasurer, CFO                and   Director |  2006     |   |              | 94,032  | (4)    |             |   | -      |                                   |   |   | -                                       |   |   |                                                                 | -      |   |                                                                       |   | 163,381 | (5)                                                  |   |   | -                |   |   |   | 26,341 | (6) |   |   | 283,754 |   |
| **Alon                Mualem**,Former                Treasurer, CFO and Principal Accounting Officer(7)                                      |  2006     |   |              | 137,274 | (8)    |             |   | -      |                                   |   |   | -                                       |   |   |                                                                 | 47,335 | (9)    |                                                                       |   | -       |                                                 |   |   | -                |   |   |   | - |   |   |   | 184,609 |   |

|   | (1) | Salary                paid to Mr. Keinan by our U.K. based wholly-owned subsidiary, Swiftnet                Limited, in connection with his employment as Chairman of the Board.                Mr.                Keinan has been the Chairman of the Board of Directors of Swiftnet                since                its inception in 1990. The amount shown in the table above was paid                in                British Pound Sterling (£48,000) and has been translated into U.S. dollars                using the rate of exchange of the U.S. dollar at December 31, 2006.                The                representative rate of exchange of the £ at December 31, 2006 was £1 =                $1.959. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | On                April 2, 2002, our Board of Directors approved a bonus and success                fee                whereby if the Company receives monthly revenues in excess of $485,000                then Mr. Keinan and our former consultant, Campbeltown Business Ltd.                shall                receive 1% of such monthly revenues, up to a maximum of one million                dollars (the “Bonus and Success Fee”). On April 10, 2003, Mr. Keinan and                Campbeltown Business waived their right to receive 1% of the revenues                generated by Story Telecom. On February 8, 2007, an Agreement was                entered                by and between the Company, Swiftnet, Campbeltown Business, and Mr.                Keinan                (the “February 8, 2007 Agreement”). The February 8, 2007 Agreement                provides that effective as of January 1, 2007, the Bonus and Success                Fee                is cancelled, and that Mr. Keinan and Campbeltown Business shall                have no                further right to any percentage of our revenues. Mr. Keinan agreed                to                receive a total amount of only $100,710 (£51,409) as Bonus and Success Fee                for 2006, which is reflected in the table above, and waived the                remainder. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The                amount shown in the table above reflects airfare expenses incurred                by the                Company for the travels of Mr. Keinan’s wife and payments for a leased                car for Mr.                Keinan’s use. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Salary                paid to Mr. Nissenson by our U.K. based wholly-owned subsidiary,                Swiftnet,                in connection with his employment as Director of Business Development.                Mr.                Nissenson joined Swiftnet in October 1999 and became a member of                its Board                of Directors in May 2000. Mr. Nissenson had been the Managing Director                of                Swiftnet from October 2003 until July 2006. The amount shown in the                table                above was paid in British Pound Sterling (£48,000) and has been translated                into U.S. dollars using the rate of exchange of the U.S. dollar at                December 31, 2006. The representative rate of exchange of the £ at                December 31, 2006 was £1 = $1.959. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | On                May 11, 2000, Swiftnet and Mr. Keinan entered into a consulting agreement                with Campbeltown Business that provided that Swiftnet will hire                Campbeltown Business as its financial and business development consultant                and will pay Campbeltown Business £2,000 per month together with an                additional monthly performance bonus based upon Swiftnet attaining                certain                revenue levels (the “Consulting Agreement”). On April 2, 2002, our Board                of Directors approved a bonus and success fee whereby if the Company                receives monthly revenues in excess of $485,000 then Mr. Keinan and                Campbeltown Business shall receive 1% of such monthly revenues, up                to a                maximum of one million dollars (the “Bonus and Success Fee”). On April 10,                2003, Mr. Keinan and Campbeltown Business waived their right to receive                1%                of the revenues generated by Story Telecom. On February 8, 2007,                an                Agreement was entered by and between the Company, Swiftnet, Campbeltown                Business, and Mr. Keinan (the “February 8, 2007 Agreement”). The February                8, 2007 Agreement provides that effective as of January 1, 2007,                the Bonus                and Success Fee is cancelled, and that Mr. Keinan and Campbeltown                Business                shall have no further right to any percentage of our revenues. The                February 8, 2007 Agreement further provides that effective as of                January                1, 2007, the Consulting Agreement is terminated. Campbeltown Business                agreed to receive a total amount of only $163,381 (£83,400) as                compensation under the Consulting Agreement and the Bonus and Success                Fee                for 2006, and waived the remainder. Campbeltown Business Ltd., a                private                company incorporated in the British Virgin Islands, is owned and                controlled by Guy Nissenson and other members of the Nissenson family.                Guy                Nissenson owns 20% of Campbeltown Business. The compensation is shown                in                the table above as paid to Guy Nissenson due to his 20% ownership                of                Campbeltown Business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | The                amount shown in the table above reflects airfare expenses incurred                by the                Company for the travels of Mr. Nissenson’s                wife. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Mr.                Alon Mualem resigned as our Treasurer, Chief Financial Officer and                Principal Accounting Officer effective as of March 1,                2007. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | The                amount shown in the table above was paid in NIS and has been translated                into U.S. dollars using the rate of exchange of the U.S. dollar at                December 31, 2006. The representative rate of exchange of the NIS                at                December 31, 2006 was 1 NIS =                $0.238. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | The                amount shown in the table reflects the dollar amount recognized for                fiscal                2006 financial statement reporting purposes of the outstanding stock                options granted to Mr. Mualem in accordance with FAS                123R.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | The                Company acknowledges that on several occasions, consultants may be                required to travel frequently for a long duration around the world.                Therefore, in order to enable the consultants’ spouses to accompany them                on certain lengthy trips for a normal family life, the Company bears                travel expenses for the consultants’spouses. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Outstanding      Equity Awards at 2006 Fiscal Year-End**

|                                    |   | **Option                Awards**                                                                         |      | **Stock                Awards** |                                                                                                       |
|-----------------------------------------|--------|----------------------------------------------------------------------------------------------------------|-----------|---------------------------------|------------------------------------------------------------------------------------------------------------|
|  **Name**                          |   | **Number                of Securities Underlying Unexercised Options****(#)                Exercisable** |      |                            | **Number                of Securities Underlying Unexercised Options****(#)                Unexercisable** |   |   | **Equity                Incentive Plan Awards: Number of Securities Underlying Unexercised                Unearned Options****(#)** |   |   | **Option                Exercise Price****($)** |   |  **Option                Expiration Date** |   | **Number                of Shares or Units of Stock That Have Not Vested****(#)** |   |   | **Market                Value of Shares or Units of Stock That Have Not                Vested****($)** |   |   | **Equity                Incentive Plan Awards: Number of Unearned Shares, Units or Other                Rights                That Have Not Vested****(#)** |   |   | **Equity                Incentive Plan Awards: Market or Payout Value of Unearned Shares,                Units or                Other Rights That Have Not Vested****($)** |   |
|  **Abraham                Keinan** |   |                                                                                                     | 1,500,000 | (1)                             |                                                                                                       |   | - |   |   |   | - |   |   |   | 3.50 |   |  November                24, 2010 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  **Guy                Nissenson**  |   |                                                                                                     | 1,500,000 | (1)                             |                                                                                                       |   | - |   |   |   | - |   |   |   | 3.50 |   |  November                24, 2010 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| **Alon                Mualem**(2)       |   |                                                                                                     | 112,500   |                            |                                                                                                       |   | 187,500 |   |   |   | - |   |   |   | 3.50 |   |  December                8, 2010 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

| (1) | These                options were granted on November 24, 2004, vested in full on November                24,                2005, and will expire on November 24,                2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On                June 8, 2005, the Company's board of directors approved a grant to                Mr.                Alon Mualem, the Company's former Treasurer, Chief Financial Officer                and                Principal Accounting Officer, of 300,000 options under and subject                to the                2004 Stock Option Plan of the Company according to the following                terms:                Option exercise price of $3.50; Vesting Date - the vesting of the                options                will be over a period of 4 years as follows: 25% of the options are                vested                after a year from the Date of Grant. Thereafter, 1/16 of the options                are                vested every 3 months for the following 3 years; Expiration Date                - 5.5                years from the grant date.  As reflected above, 112,500 of the                options were exercisable as of December 31, 2006. Mr. Alon Mualem                resigned                as our Treasurer, Chief Financial Officer and Principal Accounting                Officer                effective as of March 1, 2007. Due to Mr. Mualem’s resignation, 187,500 of                his aforementioned options were terminated on March 1, 2007. During                May                2007, Mr. Mualem exercised 6,300 of his options. On June 1, 2007,                the                remainder of Mr. Mualem’s options was                terminated. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employment      Agreements; Termination of Employment and Change-in-Control      Arrangements**

**Executive      Officers**

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**Significant      Employees**

**-**
**-**
**      -**
**      -**
**-**

**-**
**-**
**-**
**-**
**-**

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**Director      Compensation for 2006**

**Compensation      for Board Services and Reimbursement of Expenses**

|  **Name**                                   |   | **Fees****Earned                or****Paid                in****Cash(1)****($)** |   |   | **Stock                Awards****($)** |   |   | **Options                Awards****($)** |   |   | **Non-Equity****Incentive                Plan Compensation****($)** |   |   | **Nonqualified                Deferred Compensation Earnings****($)** |   |   | **All                Other Compensation****($)** |   |   | **Total****($)** |   |
|--------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|------------------|--------|
| Abraham                Keinan                (2) |   |                                                                             |   |   |                                   |   |   |                                     |   |   |                                                                |   |   |                                                                  |   |   |                                             |   |   |             |   |
| Guy                Nissenson                (2)  |   |                                                                             |   |   |                                   |   |   |                                     |   |   |                                                                |   |   |                                                                  |   |   |                                             |   |   |             |   |
| Eyal                J. Harish(3)                 |   |                                                                             | 450    |   |                                   |   | -      |                                     |   |   | -                                                                   |   |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   |   | 450 |   |
| Shemer                S. Schwartz(4)             |   |                                                                             | 1,100  |   |                                   |   | -      |                                     |   |   | -                                                                   |   |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   | ** ** | 1,100 |   |
| Itzhak                Almog(5)                   |   |                                                                             | 1,100  |   |                                   |   | -      |                                     |   |   | 22,446                                                              | (6)    |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   | ** ** | 23,546 |   |
| Aviu                Ben-Horrin(7)                |   |                                                                             | 1,150  |   |                                   |   | -      |                                     |   |   | -                                                                   |   |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   | ** ** | 1,150 |   |
| Israel                Singer(8)                  |   |                                                                             | -      |   |                                   |   | -      |                                     |   |   | -                                                                   |   |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   | ** ** | **-** |   |
| Morris                Mansour(8)                 |   |                                                                             | -      |   |                                   |   | -      |                                     |   |   | -                                                                   |   |   |                                                                  | -      |   |                                             |   | -      |             |   |   | - |   |   | ** ** | **-** |   |

| (1) | Amounts                have yet to be paid, and are expected to be paid in August                2007. |
|-----|--------------------------------------------------------------------------------------------------------|

| (2) | The                Company does not compensate Directors who also serve as executive                officers                for their services on the Board. Accordingly, Mr. Keinan and Mr.                Nissenson                did not receive any compensation for their service on the Company's                Board                during fiscal 2006. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | As                of December 31, 2006, Mr. Harish held 75,000 options, fully exercisable                at                an exercise price of $3.50 and expiration date of November 24,                2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | As                of December 31, 2006, Mr. Schwartz held 75,000 options, fully exercisable                at an exercise price of $3.50 and expiration date of November 24,                2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | As                of December 31, 2006, Mr. Almog held 25,000 options, vested over                a period                of one year from grant date, at an exercise price of $3.50 and expiration                date of October 30, 2012. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | On                October 30, 2006, the Company’s Board of Directors approved a grant of                25,000 options to Itzhak Almog under and subject to the Company's                2004                Stock Option Plan. The options were granted according to the following                terms: Date of Grant - October 30, 2006; Option exercise price -                $3.50;                Vesting Date - 12 months from the Date of Grant; Expiration Date                - 5 years                from the Vesting Date.  The amount shown in the table reflects                the dollar amount recognized for fiscal 2006 financial statement                reporting                purposes of the outstanding stock options granted to Mr. Almog in                accordance with FAS 123R.  |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | As                of December 31, 2006, Mr. Ben-Horrin held 25,000 options, fully                exercisable at an exercise price of $3.50 and expiration date of                November                24, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | As                of December 31, 2006, Messrs. Singer and Mansour did not hold                options. |
|-----|---------------------------------------------------------------------------------------------------------|

**Grant      of Options - 2007**

**-**
**-**
**-**
**      -**

**-**
**-**
**-**
** -**

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      13. EXHIBITS

| **(a)** | **Exhibits                and Index of Exhibits** |
|---------|---------------------------------------------------|

| 2.          | Agreement                and plan of reorganization dated September 20, 2000, between the                Company                and Swiftnet Limited. (1)                                                                                                                                                                                    |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles                of Incorporation of the Company. (1)                                                                                                                                                                                                                                                                                 |
| 3.2a        | Bylaws                of the Company. (1)                                                                                                                                                                                                                                                                                                    |
| 3.2b        | Amended                Bylaws of the Company. (4)                                                                                                                                                                                                                                                                                            |
| 3.3         | Memorandum                of Association of Swiftnet Limited. (1)                                                                                                                                                                                                                                                                            |
| 3.4         | Articles                of Association of Swiftnet Limited. (1)                                                                                                                                                                                                                                                                              |
| 3.6         | Bylaws                of Xfone USA, Inc. (7)                                                                                                                                                                                                                                                                                                 |
| 3.8         | Amended                and Restated Bylaws of the Company dated March 12, 2006.                (22)                                                                                                                                                                                                                                          |
| 3.9         | Reamended                and Restated Bylaws of the Company dated February 5, 2007.                (32)                                                                                                                                                                                                                                      |
| 4           | Specimen                Stock Certificate. (1)                                                                                                                                                                                                                                                                                               |
| 5           | Opinion                of Gersten Savage LLP.  (36)                                                                                                                                                                                                                                                                                |
| 10.1        | Agreement                dated May 11, 2000, between Swiftnet Limited and Guy Nissenson.                (1)                                                                                                                                                                                                                                  |
| 10.2        | Employment                Agreement dated January 1, 2000 with Bosmat Houston.                (1)                                                                                                                                                                                                                                            |
| 10.3        | Loan                Agreement dated August 5, 2000, with Swiftnet Limited, Guy Nissenson,                and                Nissim Levy (1)                                                                                                                                                                                                  |
| 10.4        | Promissory                Note dated September 29, 2000, between the Company and Abraham Keinan.                (1)                                                                                                                                                                                                                          |
| 10.5        | Stock                Purchase Agreement dated June 19, 2000, between Swiftnet Limited,                Abraham                Keinan, and Campbeltown Business Ltd. (1)                                                                                                                                                                       |
| 10.6        | Consulting                Agreement dated May 11, 2000 between Swiftnet Limited and Campbeltown                Business Ltd. (1)                                                                                                                                                                                                             |
| 10.7        | Agreement                dated July 30, 2001, with Campbeltown Business Ltd. (1)                                                                                                                                                                                                                                                             |
| 10.8        | Contract                dated June 20, 1998, with WorldCom International Ltd.                (1)                                                                                                                                                                                                                                             |
| 10.9        | Contract                dated April 11, 2000, with VoiceNet Inc. (1)                                                                                                                                                                                                                                                                         |
| 10.10       | Contract                dated April 25, 2000, with InTouchUK.com Ltd. (1)                                                                                                                                                                                                                                                                    |
| 10.11       | Letter                of Understanding dated July 30, 2001, from Campbeltown Business Ltd.                to                the Company (2)                                                                                                                                                                                                  |
| 10.12       | Agreement                dated April 6, 2000, between Adar International, Inc./Mr. Sidney                J. Golub                and Swiftnet Limited. (2)                                                                                                                                                                                   |
| 10.13       | Lease                Agreement dated December 4, 1991, between Elmtree Investments Ltd.                and                Swiftnet Limited. (2)                                                                                                                                                                                              |
| 10.14       | Lease                Agreement dated October 8, 2001, between Postwick Property Holdings                Limited and Swiftnet Limited.(2)                                                                                                                                                                                                     |
| 10.15       | Agreement                dated September 30, 2002, between the Company, Swiftnet Limited.,                and Nir                Davison. (5)                                                                                                                                                                                                |
| 10.16  | As                to Form: Shares and Warrant Purchase Agreement, Irrevocable Proxy,                Warrant                A, Warrant B and Registration Rights Agreement of Selling Shareholders                Platinum Partners Value Arbitrage Fund LP, Countrywide Partners LLC                and                WEC Partners LLC. (6) |

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| 10.17   | As                to Form: Shares and Warrant Purchase Agreement, Irrevocable Proxy,                Warrant                A, Warrant B and Registration Rights Agreement of Selling Shareholders                Simon Langbart, Robert Langbart, Arik Ecker, Zwi Ecker, Michael Derman,                Errol Derman,Yuval Haim Sobel, Zvi Sobel, Tenram Investment Ltd.,                Michael                Zinn, Michael Weiss. (6) |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.18        | As                to Form: Shares and Warrant Purchase Agreement, Irrevocable Proxy,                Warrant                A, Warrant B and Registration Rights Agreement of Selling Shareholders                Southridge Partners LP and Southshore Capital Fund Ltd.                (6)                                                                                                                                              |
| 10.19        | As                to Form: Shares and Warrant Purchase Agreement, Irrevocable Proxy,                Warrant                A, Warrant B and Registration Rights Agreement of Selling Shareholders                Crestview Capital Master LLC. (6)                                                                                                                                                                                       |
| 10.20   | As                to Form: Shares and Warrant Purchase Agreement, Irrevocable Proxy,                Warrant                A, Warrant B and Registration Rights Agreement of Selling Shareholders                Adam Breslawsky, Oded Levy, Michael Epstein, Steven Frank, Joshua                Lobel,                Joshua Kazan and The Oberon Group LLC. (6)                                                                       |
| 10.21             | Newco                (Auracall Limited) Formation Agreement. (6)                                                                                                                                                                                                                                                                                                                                                                         |
| 10.22             | Agreement                with ITXC Corporation. (6)                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.23             | Agreement                with Teleglobe International. (6)                                                                                                                                                                                                                                                                                                                                                                               |
| 10.23.1           | Amendment                to Agreement with Teleglobe International. (6)                                                                                                                                                                                                                                                                                                                                                                  |
| 10.24             | Agreement                with British Telecommunications. (6)                                                                                                                                                                                                                                                                                                                                                                            |
| 10.25             | Agreement                with Easyair Limited (OpenAir). (6)                                                                                                                                                                                                                                                                                                                                                                             |
| 10.26             | Agreement                with Worldnet. (6)                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27             | Agreement                with Portfolio PR. (6)                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.28             | Agreement                with Stern and Company. (6)                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.29             | Letter                to the Company dated December 31, 2003, from Abraham Keinan.                (6)                                                                                                                                                                                                                                                                                                                                    |
| 10.30             | Agreement                between Swiftnet Limited and Dan Kirschner. (8)                                                                                                                                                                                                                                                                                                                                                                 |
| 10.31             | Agreement                and Plan of Merger. (7)                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.32             | Escrow                Agreement. (7)                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.33             | Release                Agreement. (7)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.34             | Employment                Agreement date March 10, 2005, between Xfone USA, Inc. and Wade Spooner.                (7)                                                                                                                                                                                                                                                                                                                    |
| 10.35             | Employment                Agreement date March 10, 2005, between Xfone USA, Inc. and Ted Parsons.                (7)                                                                                                                                                                                                                                                                                                                     |
| 10.36             | First                Amendment to Agreement and Plan of Merger (to acquire WS Telecom,                Inc.)                (11)                                                                                                                                                                                                                                                                                                          |
| 10.37             | Finders                Agreement with The Oberon Group, LLC. (11)                                                                                                                                                                                                                                                                                                                                                                        |
| 10.38             | Agreement                with The Oberon Group, LLC. (11)                                                                                                                                                                                                                                                                                                                                                                                |
| 10.39             | Management                Agreement between WS Telecom, Inc. and Xfone USA, Inc.                (8)                                                                                                                                                                                                                                                                                                                                      |
| 10.40             | Engagement                Letter to Tommy R. Ferguson, Confidentiality Agreement, and Executive                Inventions Agreement dated August 19, 2004 (11)                                                                                                                                                                                                                                                                           |
| 10.41             | Voting                Agreement dated September 28, 2004. (11)                                                                                                                                                                                                                                                                                                                                                                           |
| 10.42             | Novation                Agreement executed September 27, 2004. (11)                                                                                                                                                                                                                                                                                                                                                                      |
| 10.43             | Novation                Agreement executed September 28, 2004. (11)                                                                                                                                                                                                                                                                                                                                                                      |
| 10.44             | Investment                Agreement dated August 26, 2004, with Ilan Shoshani.                (12)                                                                                                                                                                                                                                                                                                                                       |
| 10.44.1           | Addendum                and Clarification to the Investment Agreement with Ilan Shoshani                dated                September 13, 2004. (12)                                                                                                                                                                                                                                                                                    |
| 10.45             | Agreement                dated November 16, 2004, with Elite Financial Communications Group.                (13)                                                                                                                                                                                                                                                                                                                         |

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| 10.46  | Financial                Services and Business Development Consulting Agreement dated November                18,                2004, with Dionysos Investments (1999) Ltd. (13)                                                                                                                                                                                                                |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.47       | Agreement                and Plan of Merger to acquire I-55 Internet Services, Inc. dated                August                18, 2005. (14)                                                                                                                                                                                                                                                    |
| 10.48       | Agreement                and Plan of Merger to acquire I-55 Telecommunications, LLC dated                August                26, 2005 (15)                                                                                                                                                                                                                                                     |
| 10.49       | Securities                Purchase Agreement, dated September 27, 2005, by and between the                Company                and Laurus Master Fund, Ltd. (16)                                                                                                                                                                                                                               |
| 10.50       | Secured                Convertible Term Note, dated September 27, 2005, by the Company in                favor                of Laurus Master Fund, Ltd.; Adjustment Provision Waiver Agreement,                dated                September 27, 2005, by and between the Company and Laurus Fund, Ltd.                (16)                                                                   |
| 10.51       | Common                Stock Purchase Warrant, dated September 27, 2005, by the Company                in favor                of Laurus Master Fund, Ltd. (16)                                                                                                                                                                                                                                   |
| 10.52       | Registration                Rights Agreement, dated September 27, 2005, by and between the Company                and                Laurus Master Fund, Ltd. (16)                                                                                                                                                                                                                               |
| 10.53       | Master                Security Agreement, dated September 27, 2005, by and between the                Company,                Xfone USA, Inc., eXpeTel Communications, Inc., Gulf Coast Utilities,                Inc.,                and Laurus Master Fund, Ltd. (16)                                                                                                                         |
| 10.54       | Stock                Pledge Agreement, dated September 27, 2005, by and between the Company,                Xfone USA, Inc., and Laurus Master Fund, Ltd. (16)                                                                                                                                                                                                                                   |
| 10.55       | Subsidiary                Guarantee dated September 27, 2005, by Xfone USA, Inc., eXpeTel                Communications, Inc. and Gulf Coast Utilities, Inc. in favor of Laurus                Master Fund, Ltd. (16)                                                                                                                                                                            |
| 10.56       | Funds                Escrow Agreement, dated September 27, 2005, by and between the Company,                Laurus Master Fund, Ltd. and Loeb & Loeb LLP; Disbursement Letter,                dated September 27, 2005 (16)                                                                                                                                                                  |
| 10.57       | Incremental                Funding Side Letter, dated September 27, 2005, by and between the                Company                and Laurus Master Fund, Ltd. (16)                                                                                                                                                                                                                             |
| 10.58       | Securities                Purchase Agreement, dated September 28, 2005, by and between the                Company                and Crestview Capital Mater, LLC, Burlingame Equity Investors, LP,                Burlingame Equity Investors II, LP, Burlingame Equity Investors                (Offshore), Ltd., and Mercantile Discount - Provident Funds.                (16)               |
| 10.59       | Registration                Rights Agreement, dated September 28, 2005, by and between the Company                and                Crestview Capital Mater, LLC, Burlingame Equity Investors, LP, Burlingame                Equity Investors II, LP, Burlingame Equity Investors (Offshore),                Ltd., and                Mercantile Discount - Provident Funds. (16)               |
| 10.60       | Common                Stock Purchase Warrant, dated September 28, 2005, by the Company                in favor                of the Crestview Capital Mater, LLC, Burlingame Equity Investors,                LP,                Burlingame Equity Investors II, LP, Burlingame Equity Investors                (Offshore), Ltd., and Mercantile Discount - Provident                Funds.(16) |
| 10.61       | Escrow                Agreement, dated September 28, 2005, by and between the Company,                the                Purchasers and Feldman Weinstein LLP (16)                                                                                                                                                                                                                               |
| 10.62       | Management                Agreement dated October 11, 2005. (17)                                                                                                                                                                                                                                                                                                                                 |
| 10.63       | First                Amendment to Agreement and Plan of Merger (to acquire I-55 Internet                Services, Inc.), dated October 10, 2005. (17)                                                                                                                                                                                                                                            |
| 10.64       | Letter                Agreement with MCG Capital Corporation dated October 10, 2005.                (17)                                                                                                                                                                                                                                                                                         |
| 10.65  | Securities                Purchase Agreement, dated November 23, 2005, between the Company                and                Mercantile Discount - Provident Funds, Hadar Insurance Company Ltd.,                The                Isreali Phoenix Assurance Company Ltd. and Gaon Gemel Ltd.                (18)                                                                               |
| 10.66  | Registration                Rights Agreement, dated November 23, 2005, between the Company and                Mercantile Discount - Provident Funds, Hadar Insurance Company Ltd.,                The                Isreali Phoenix Assurance Company Ltd. and Gaon Gemel                Ltd.  (18)                                                                                   |
| 10.67  | Common                Stock Purchase Warrant, dated November 23, 2005, by the Company in                favor                of Mercantile Discount - Provident Funds, Hadar Insurance Company                Ltd.,                The Isreali Phoenix Assurance Company Ltd. and Gaon Gemel Ltd.                (18)                                                                            |
| 10.68  | Escrow                Agreement, dated November 23, 2005, between the Company, the Escrow                Agent,                and Mercantile Discount - Provident Funds, Hadar Insurance Company                Ltd.,                The Isreali Phoenix Assurance Company Ltd. and Gaon Gemel Ltd.                (18)                                                                         |

----

| 10.69 | Management                Agreement with I-55 Telecommunications, LLC dated October 12, 2005.                (19)                                                                                                                                                                |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.70 | Agreement                - General Terms and Conditions with EBI Comm, Inc., dated January                1, 2006.                (21)                                                                                                                                           |
| 10.71 | Asset                Purchase Agreement with Canufly.net, Inc., dated January 10, 2006.                (21)                                                                                                                                                                      |
| 10.72 | Stock                Purchase Agreement dated May 10, 2006, by and among the Company,                Story                Telecom, Inc., Story Telecom Limited, Story Telecom (Ireland) Limited,                Nir                Davison, and Trecastle Holdings Limited. (23) |
| 10.73 | Agreement                dated May 25, 2006, by and among the Company and the shareholders                of                Equitalk.co.uk Limited. (24)                                                                                                                         |
| 10.74 | Securities                Purchase Agreement, dated June 19, 2006, by and between the Company                and                the Purchasers. (25)                                                                                                                             |
| 10.75 | Registration                Rights Agreement, dated June 19, 2006, by and between the Company                and the                Purchasers. (25)                                                                                                                             |
| 10.76 | Common                Stock Purchase Warrant, dated June 19, 2006, by the Company in favor                of                the Purchasers. (25)                                                                                                                                 |
| 10.77 | Escrow                Agreement, dated June 19, 2006, by and between the Company, the Escrow                Agent, and the Purchasers. (25)                                                                                                                                      |
| 10.78 | Form                of Indemnification Agreement between the Company and its Directors                and                Officers. (27)                                                                                                                                          |
| 10.79 | Agreement                to Purchase Promissory Note dated October 31, 2005, with Randall                Wade                James Tricou. (27)                                                                                                                                  |
| 10.80 | Agreement                to Purchase Promissory Note dated October 31, 2005, with Rene Tricou                -                Tricou Construction. (27)                                                                                                                          |
| 10.81 | Agreement                to Purchase Promissory Note dated October 31, 2005, with Rene Tricou                - Bon                Aire Estates. (27)                                                                                                                             |
| 10.82 | Agreement                to Purchase Promissory Note dated October 31, 2005, with Rene Tricou                - Bon                Aire Utility. (27)                                                                                                                             |
| 10.83 | Agreement                to Purchase Promissory Note dated February 3, 2006, with Danny Acosta.                (27)                                                                                                                                                              |
| 10.84 | Letter                Agreement dated November 15, 2005, with Oberon Securities, LLC.                (27)                                                                                                                                                                        |
| 10.85 | Letter                Agreement dated June 15, 2006, with Oberon Securities, LLC.                (27)                                                                                                                                                                            |
| 10.86 | Second                Amendment to Agreement and Plan of Merger (to acquire WS Telecom,                Inc.),                dated June 28, 2006. (27)                                                                                                                           |
| 10.87 | General                Contract for Services dated January 1, 2005, by and between the Company                and Swiftnet Limited. (27)                                                                                                                                         |
| 10.88 | Service                Agreement dated December 6, 2005, by and between the Company and                Elite                Financial Communications Group, LLC. (27)                                                                                                            |
| 10.89 | Agreement                for Market Making in Securities dated July 31, 2006, by and between                the                Company and Excellence Nessuah Stock Exchange Services Ltd.                (27)                                                                   |
| 10.90 | Shareholders                Loan Agreement, dated September 27, 2006, by and between Auracall                Limited,                Swiftnet Limited, and Dan Kirschner. (28)                                                                                                   |
| 10.91 | Service                Agreement, dated November 7, 2006, by and between the Company and                Institutional Marketing Services, Inc. (28)                                                                                                                              |
| 10.92 | Consultancy                Agreement, dated November 20, 2006, by and between the Company and                Crestview Capital Partners, LLP. (29)                                                                                                                               |
| 10.93 | Agreement                dated December 24, 2006, by and between the Company, Halman-Aldubi                Provident Funds Ltd., and Halman-Aldubi Pension Funds Ltd. [translation                from Hebrew] (31)                                                              |
| 10.94 | First                Amendment to Financial Services and Business Development Consulting                Agreement dated February 8, 2007, by and between the Company and                Dionysos                Investments (1999) Ltd. (33)                                     |

----

| 10.95  | Agreement                dated February 8, 2007, by and between the Company, Swiftnet Limited,                Campbeltown Business, Ltd., and Mr. Abraham Keinan.                (33) |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.96  | First                amendment to General Contract for Services, dated March 14, 2007,                by and                between the Company and Swiftnet Limited. (34)            |
| 10.97  | Employment                Agreement, dated March 28, 2007, between Swiftnet Limited and Abraham                Keinan.  (34)                                                |
| 10.98  | Consulting                Agreement, dated March 28, 2007, between the Company and Abraham                Keinan.  (34)                                                     |
| 10.99  | Employment                Agreement, dated March 28, 2007, between Swiftnet Limited and Guy                Nissenson. (34)                                                            |
| 10.100 | Consulting                Agreement, dated March 28, 2007, between the Company and Guy                Nissenson.  (34)                                                      |
| 10.101 | Settlement                Agreement and Release dated May 31, 2007, by and among Embarq Logistics,                Inc, Xfone USA, Inc. and the Company. (35)                          |
| 10.102 | Promissory                Note dated May 31, 2007, by Xfone USA, Inc. (35)                                                                                                            |
| 10.103 | Parent                Guarantee dated as of May 31, 2007 by the Company in favor of Embarq                Logistics, Inc. (35)                                                        |
| 16.1   | Letter                dated January 31, 2006 from Chaifetz & Schreiber, P.C to the                Securities and Exchange Commission (20)                                         |
| 21.1   | List                of Subsidiaries (Amended) (26)                                                                                                                                    |
| 23     | Consent                of Stark, Winter, Scheinkein & Co., LLP (34)                                                                                                               |
| 23.1   | Consent                of Chaifetz & Schreiber, P.C. (22.1) (30)                                                                                                                  |
| 23.2   | Consent                of Gersten Savage LLP - incorporated in the legal opinion filed as                Exhibit                5.                                                    |
| 23.3   | Consent                of Postlethwaite & Netterville, APAC dated February 7, 2006.                (21.1)                                                                         |
| 23.4   | Consent                of Postlethwaite & Netterville, APAC dated February 7, 2006.                (21.1)                                                                         |
| 31.1   | Certification                pursuant to section 302 of the Sarbanes -                Oxley Act of 2002.                                                                              |
| 31.2   | Certification                pursuant to section 302 of the Sarbanes -                Oxley Act of 2002.                                                                              |
| 32.1   | Certification                of Officer pursuant to section 906 of the Sarbanes - Oxley Act of                2002.                (34)                                               |
| 32.2   | Certification                of Officer pursuant to section 906 of the Sarbanes - Oxley Act of                2002.                (34)                                               |

| (1)  | Denotes                previously filed exhibits: filed on August 10, 2001 with Xfone, Inc.'s                SB-2 registration statement.                             |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Denotes                previously filed exhibits: filed on October 16, 2001 with Xfone,                Inc.'s                SB-2/Amendment 1 registration statement. |
| (4)  | Denotes                previously filed exhibit: filed on December 5, 2002 with Xfone, Inc.'s                Form 8-K.                                                |
| (5)  | Denotes                previously filed exhibit: filed on March 3, 2003 with Xfone, Inc.'s                SB-2/Post Effective Amendment 2 registration statement.     |
| (6)  | Denotes                previously filed exhibit: filed on April 15, 2004 with Xfone's,                Inc. SB-2 Amendment 1 Registration Statement.              |
| (7)  | Denotes                previously filed exhibit: filed on June 1, 2004 with Xfone, Inc.'s                Form                8-K.                                     |
| (8)  | Denotes                previously filed exhibit: filed on June 7, 2004 with Xfone, Inc.'s                SB-2/Amendment 2 Registration Statement.                     |
| (9)  | Denotes                previously filed exhibit: filed on August 11, 2004 with Xfone's,                Inc. SB-2                Amendment 3 Registration Statement.   |
| (10) | Denotes                previously filed exhibit: filed on September 13, 2004 with Xfone's,                Inc. SB-2 Amendment 4 Registration Statement.          |
| (11) | Denotes                previously filed exhibits: filed on October 4, 2004 with Xfone, Inc.'s                Form 8-K                                                 |
| (12) | Denotes                previously filed exhibits: filed on November 29, 2004 with Xfone,                Inc.'s                Form 8-K.                               |
| (13) | Denotes                previously filed exhibits; filed on March 31, 2005 with Xfone, Inc.'s                Form                10-KSB.                               |
| (14) | Denotes                previously filed exhibit: filed on August 22, 2005 with Xfone, Inc.'s                Form                8-K.                                  |
| (15) | Denotes                previously filed exhibit: filed on August 31, 2005 with Xfone, Inc.'s                Form                8-K.                                  |
| (16) | Denotes                previously filed exhibits: filed on October 3, 2005 with Xfone, Inc.'s                Form 8-K.                                                |

----

| (17)   | Denotes                previously filed exhibits: filed on October 11, 2005 with Xfone,                Inc.'s                Form 8-K/A #1.         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (18)   | Denotes                previously filed exhibits: filed on November 29, 2005 with Xfone,                Inc.'s                Form 8-K.             |
| (19)   | Denotes                previously filed exhibit: filed on January 23, 2006 with Xfone, Inc.'s                Form 8-K/A #3.                         |
| (20)   | Denotes                previously filed exhibit: filed on January 31, 2006 with Xfone, Inc.'s                Form 8-K/A #1.                         |
| (21)   | Denotes                previously filed exhibit: filed on January 31, 2006 with Xfone, Inc.'s                Form 8-K.                              |
| (21.1) | Denotes                previously filed exhibits: filed on February 7, 2006 with Xfone,                Inc.'s                Form SB-2 Amendment 3. |
| (22)   | Denotes                previously filed exhibit: filed on March 15, 2006 with Xfone, Inc.'s                Form                8-K.                 |
| (22.1) | Denotes                previously filed exhibit: filed on March 31, 2006 with Xfone, Inc.'s                Form                10-KSB.              |
| (23)   | Denotes                previously filed exhibit: filed on May 16, 2006 with Xfone, Inc.'s                Form                8-K.                   |
| (24)   | Denotes                previously filed exhibit: filed on May 30, 2006 with Xfone, Inc.'s                Form                8-K.                   |
| (25)   | Denotes                previously filed exhibits: filed on June 20, 2006 with Xfone, Inc.'s                Form                8-K.                 |
| (26)   | Denotes                previously filed exhibits: filed on July 5, 2006 with Xfone, Inc.'s                Form                8-K.                  |
| (27)   | Denotes                previously filed exhibits: filed on July 31, 2006 with Xfone, Inc.'s                Form                8-K.                 |
| (28)   | Denotes                previously filed exhibits: filed on November 14, 2006 with Xfone,                Inc.'s                Form 10-QSB.          |
| (29)   | Denotes                previously filed exhibit: filed on November 22, 2006 with Xfone,                Inc.'s                Form 8-K.              |
| (30)   | Denotes                previously filed exhibits: filed on November 30, 2006 with Xfone,                Inc.'s                Form SB-2.            |
| (31)   | Denotes                previously filed exhibit: filed on December 28, 2006 with Xfone,                Inc.'s                Form 8-K.              |
| (32)   | Denotes                previously filed exhibit: filed on February 5, 2007 with Xfone, Inc.'s                Form 8-K.                              |
| (33)   | Denotes                previously filed exhibits: filed on February 8, 2007 with Xfone,                Inc.'s                Form 8-K.              |
| (34)   | Denotes                previously filed exhibits; filed on March 30, 2007 with Xfone, Inc.'s                Form                10-KSB.             |
| (35)   | Denotes                previously filed exhibits: filed on May 31, 2007 with Xfone, Inc.'s                Form                8-K.                  |
| (36)   | Denotes                previously filed exhibit: filed on June 8, 2007 with Xfone, Inc.'s                Form                SB-2.                  |

----

** SIGNATURES**

|                                    |                                                                                                                                         |                                  |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                                    | XFONE,                INC.                                                                                                                   |
|                               |                                                                                                                                    |                             |
| Date: July                30, 2007 | By:                                                                                                                                | /s/ Guy                Nissenson |
|                                    | Guy                NissensonPresident,                Chief Executive Officer,Treasurer,                Chief Financial Officer and Director |
|                                    |                                                                                                                                         |

| Signature                         | Title                                                                                                             | Date                         |
|-----------------------------------|-------------------------------------------------------------------------------------------------------------------|------------------------------|
|                              |                                                                                                              |                         |
| /s/                Abraham Keinan | Chairman                of the Board                                                                              | July                30, 2007 |
| **Abraham                Keinan** |                                                                                                              |                         |
|                              |                                                                                                              |                         |
| /s/Guy                Nissenson   | President,                Chief Executive Officer, Treasurer, Chief Financial Officer and                Director | July                30, 2007 |
| **Guy                Nissenson**  |                                                                                                              |                         |
|                              |                                                                                                              |                         |
| /s/                Itzhak Almog   | Director                and Chairman of the Audit Committee                                                       | July                30, 2007 |
| **Itzhak                Almog**   |                                                                                                              |                         |
|                              |                                                                                                              |                         |
| /s/Eyal                J. Harish  |  Director                                                                                                    | July                30, 2007 |
| **Eyal                J. Harish** |                                                                                                              |                         |
|                              |                                                                                                              |                         |
| /s/                Israel Singer  | Director                and member of the Audit Committee                                                         | July                30, 2007 |
| **Israel                Singer**  |                                                                                                              |                         |
|                              |                                                                                                              |                         |
| /s/                Niv Krikov     | Vice                President Finance and Principal Accounting Officer                                            | July                30, 2007 |
| **Niv                Krikov**     |                                                                                                              |                         |

----