Company Named to List for Second Year in a Row

(October 25, 2004) Austin, Texas – VCON (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, today announced that it has been selected for the second year in a row as one of Software Magazine’s Software 500. The annual list, published at www.softwaremag.com, honors the world’s top software and services companies and is based on revenue from software license sales and services. VCON improved its position in the 22nd annual ranking from last year, reflecting the company’s growth from recent software product introductions.

“VCON is pleased to be recognized again on such a comprehensive list of the world’s top software and service providers,” said Gordon Daugherty, chief marketing officer, VCON. “We’re continually developing and enhancing our software products designed to facilitate fast, easy and manageable communication in today’s complex business environment, and this recognition further confirms our strength and innovation within such a competitive marketplace.”

VCON continues to introduce new, cutting-edge videoconferencing software products, including vPoint HD, the first software-only IP videoconferencing client in the industry to support the new H.264 video standard, and the HD4000, the first software-only group videoconferencing application on the market. VCON also recently announced its HD Developers Kit (HDDK), a high-quality software development kit offered for integrators and software developers looking to create custom or vertical video-enabled applications.

The Software 500 is based on total worldwide software and services revenue for 2003, during which VCON’s revenue grew 46 percent. VCON software products are sold through a variety of reseller partners and distributors around the world. Please see complete details on these products at http://www.emblaze-vcon.com.

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).