VCON Reports Q1 Results for 2005

(May 17, 2005) Herzliya, Israel - VCON (Eurolist ISIN Code: IL 00 108 30540 ), a worldwide leader in audio and videoconferencing solutions, today reports financial results for the first quarter of 2005.

Revenues for the first quarter of 2005 were $2.7 million (€ 2.1 million) compared to $4.2 million (€ 3.2 million) in the first quarter of 2004, representing a decrease of 36%. Excluding restructuring expenses of $0.6 million (€0.4 million), the company reports a loss from continuing operations of $2.4 million (€ 1.9 million) for the first quarter of 2005 compared to a net loss of $2.0 million (€ 1.6 million) for the first quarter of 2004. (All USD$ amounts in this press release are, for convenience, converted to EUR amounts based on an exchange rate of 1 € = 1.295 US $).

David Ofek , CEO of VCON commented, "The results of the first Quarter demonstrate to us the immediate need for focusing our activity". He added, "VCON will demonstrate to the market through change of leadership and structure, its value, products and understanding of needs."

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About VCON

VCON develops and manufactures a variety of conferencing solutions that enable seamless communication and collaboration using all forms of interactive media. The company's award-winning technology ensures the highest audio and video performance for organizations worldwide. VCON's meeting and collaboration solutions include desktop and group videoconferencing products, audio conferencing products, data conferencing products and management systems. The company markets its products and services through a network of reseller partners, OEMS and value-added resellers around the world. VCON has worldwide headquarters in Israel and regional headquarters in Munich , Austin and Beijing . VCON is publicly traded on Le Nouveau Marché (ISIN Code: IL 00 108 30540).