Order For Videocon to Ship After Modem Approval Expected Early in 1998

    WILMINGTON, N.C., Nov. 4, /PRNewswire/ -- C-Phone Corporation
(Nasdaq: CFON) announced today that it has received a purchase order from its
India Distributor on behalf of Videocon International Limited (Bombay Stock
Exchange: VCIN, The London Stock Exchange: VIDD), which contemplates the
exclusive right to distribute and co-brand C-Phone Home(TM), a TV-based H.324
video phone, in India.  Videocon is a major distributor of consumer
electronics and home appliances in India.  The initial purchase order is
valued at $1,020,000 and is subject to granting of the TEC/PSTN modem approval
in India, which process is already underway.
    According to Naveen Mandhana, President & CEO of the Videocon IT and
Telecom Group, India OA Systems Ltd., "Videocon is pleased to be the exclusive
distributor of the C-Phone product line in our country.  As you know, Videocon
is the number one brand name in consumer electronics and home appliances in
India.  We intend to market the C-Phone Home TV video phone through our vast
consumer electronics distribution network and project sales of up to 6,500
units our first year.  We look forward to making this new age consumer durable
a must for every house in India having telephone access."  Mr. Mandhana
concluded, "Rest assured, we intend to leave no stone unturned to make C-Phone
Home successful in India."
    Daniel Flohr, Chairman of C-Phone stated, "We are honored that Videocon
will represent C-Phone Home in India.  With Videocon's strength and market
position in India, we are delighted that they will feature both the Videocon
and C-Phone brand names on our product.  With our international partners, we
now have presence and activity in over two dozen countries.  Expanding
international territories is important for a product like C-Phone Home as it
increases our business and provides additional domestic opportunities, because
the U.S. is filled with relatives who would love to see their friends and
family back in their homeland."

    About C-Phone Home
    C-Phone Home is a self-contained TV "Set-Top Box" with a built-in
speakerphone and operated by a wireless remote control.  With the TV set
turned on, a video call can be speed dialed or answered with the C-Phone Home
hand held remote control by pushing just one button.  It uses any standard TV
set to present the audio and video of the person being called.  The system
connects to a TV just like a VCR.
    Easy-to-use on-screen text menus allow the user to operate and configure
the system, C-Phone Home is H.324 compatible and is based on Lucent
Technologies 67 MHz AVPTM III (Video/Audio Processor) technology, which runs
more than two times faster than any other product in the market today, and
Bell Labs software.  The unit is approximately the size and shape of a cable
TV converter box and works with analog phone lines for H.324 point-to-point
and H.324 multipoint video calling.

    About Videocon International Limited
    Videocon International Limited is a publicly traded company based in
Bombay, India.  With annual sales in excess of US $900 million it is ranked
number 34 in sales in India by The Economic Times Mumbai.  Videocon is the
distributor in India for a number of major technology companies such as
Microsoft, Toshiba, Kenwood, Sansui and Kenstar.  Videocon employs over
7000 and has a network of over 400 retail outlets in 75 cities in India.
Videocon enjoys a 25% share of the consumer electronics and home appliances
market, making Videocon the number one brand name in India.

    About C-Phone Corporation
    C-Phone Corporation, is a North Carolina-based video conferencing systems
manufacturer.  The Company has gained recognition as an innovator and provider
of scaleable, flexible, practical and easy-to-use H.320 PC-based video
conferencing products and H.324 TV-based video phones for point-to-point and
multipoint video calling.  The Company's video conferencing products are being
used by a broad range of industries.  More general information about C-Phone
Corporation is available from its Web site at http://www.cphone.com .

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