VCON Shareholder Elbit Ultrasound Netherlands B.V. redeems convertible notes equalling $2,475,000

July 23, 2004 (Herzliya, Israel) – VCON (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, today announces an agreement with Elbit Ultrasound Netherlands B.V. ("ELBIT"), a shareholder of VCON, for the redemption of two convertible notes, in the aggregate amount of $2,475,000, issued by VCON to ELBIT in 2002 (the "Elbit Convertible notes"). According to the agreement, in consideration for the full surrender and cancellation of the Elbit Convertible Notes, VCON paid and issued, respectively, to ELBIT the following: (i) USD 1,007,000 in cash and (ii) 2,046,131 shares of VCON as a result of the conversion of the Elbit Convertible Notes (the "Shares").

The Shares represent 6% of VCON's issued and outstanding share capital.

The Elbit Convertible Notes and the underlying Shares were detailed in a note d'opération registered with the AMF on July 30, 2003 under the visa N°03-720. VCON intends to apply for the listing of the Shares on Le Nouveau Marché of Euronext.

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).