(July 6, 2004) Austin, Texas – VCON (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, today announces its newest carrier customer in Latin America, Diveo Broadband Networks, Inc.

Diveo owns and operates the largest Web hosting and co-location data center in Latin America, offering bandwidth and connectivity services in Brazil and Colombia and data center services in Brazil, Colombia, Mexico and Miami. Diveo is backed by Ericsson and Lucent Technologies, allowing for future expansion of its businesses throughout Latin America.

“VCON’s solutions provide a manageable, yet highly valuable set of rich media conferencing services,” said Marcelo Rodrigues, marketing director, Diveo. “The value add of having VCON’s high-definition family of videoconferencing, audioconferencing, server and management solutions is that they provide revenue-enhancing opportunities for Diveo and our large customer base.”

Diveo will offer VCON’s rich media conferencing solutions via IP or ISDN to more than 800 corporate customers and over 100 universities currently connected to Diveo’s VPN MPLS network and IP infrastructure. Diveo customers can lease VCON’s High-Definition family of rich media solutions, use the VCON VCB 2000 to conduct multipoint conferencing, streaming and scheduling, and benefit from a centralized management and applications server for videoconferencing networks via VCON’s Media Xchange Manager (MXM).

"VCON is pleased to see a service provider such as Diveo utilize our rich media conferencing solutions for customer service, training and conferencing," said Gordon Daugherty, chief marketing officer, VCON, Inc. "We are confident that offering video to their customers as an easy, reliable mean of communication and training will give them a clear competitive edge and will increase their customer satisfaction and loyalty."

About Diveo

Diveo Broadband Networks, Inc. is Latin America’s leading supplier of Internet communications services. Diveo offers wireless broadband data, voice and video services. Diveo is the only company in Latin America to offer to a pan-regional net of next generation Internet data centers, encompassing 37.5 million square feet of Web Hosting and Co-location space. Beyond its world-class Internet data center services (hosting dedicated, co-location, bandwidth, managed content delivery services), Diveo offers private line, dedicated Internet access via frame relay and ATM.

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 Euronext (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540).