VCON REPORTS Q4 RESULTS FOR 2004

(Feb. 21, 2005) Herzliya, Israel - VCON (Nouveau Marché ISIN Code: IL 00 108 30540 ), a worldwide leader in audio and videoconferencing solutions, today reports financial results for the fourth quarter of 2004.

Revenues for the forth quarter of 2004 were $3.5 million (€ 2.6 million) compared to $4.6 million (€ 3.3 million) in the fourth quarter of 2003, representing a 22% decrease. Excluding one-time write-offs of $1.6 million (€1.2 million), the company reports a loss from continuing operations of $2.7 million (€ 2.0 million) for the fourth quarter of 2004 compared to a net loss of $1.3 million (€ 1.0 million) for the fourth quarter of 2003. (All USD$ amounts in this press release are, for convenience, converted to EUR amounts based on an exchange rate of 1 € = 1.364 US$).

Yair Shamir, Chairman of VCON commented, "While our results do not yet show improvement in terms of revenues, VCON has made significant changes in its management team which I believe will put VCON back on a growth track." He added, "In my capacity as active Chairman of the Board I will continue to support the new management and the changes that it will implement."

FINANCIAL TABLES:

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).