51% increase over Q1 last year

(April 19, 2004) Herzliya, Israel – VCON (Nouveau Marché ISIN Code: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, today reports revenues for the first quarter of 2004.

Revenues for the first quarter of 2004 reached $4.2 million (€ 3.5 million), representing an increase of 51% compared to $2.8 million (€ 2.3 million) in the first quarter of 2003, and a decrease of 7 % compared to $4.6 (3.7 million EUR) in the fourth quarter of 2003. (All US Dollar amounts in this press release are translated for convenience to EUR based on the exchange rate of 1 EUR = 1.22 US Dollars.)

Yair Shamir, Chairman and CEO of VCON explained, “We are satisfied with the results for the first quarter. The initial sales of our newly released HD product line are encouraging and our launch of the HD products at CeBIT proved successful, generating positive feedback.” He concluded, “We believe that our partners now have the right products, combining performance and competitive pricing, to capitalize on the recovering market.”

In keeping with company practice, full results for the first quarter, 2004 will be announced in mid-May.

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).