[April 17, 2012]

NTS Fiber Network Breaks Ground in Louisiana; Expected to Add 11,500 Passings

NTS, Inc., f/k/a Xfone (News - Alert), Inc. (NYSE Amex/TASE: NTS) ("NTS" or "the Company") announces that it has begun construction of its high speed Fiber-To-The-Premise (FTTP) Network in southern Louisiana. As the build out progresses, the fiber network will eventually include the communities of Hammond, Ponchatoula, Natalbany, Tickfaw, Independence and Amite, Louisiana, adding approximately 11,500 FTTP passings. A WiMAX (News - Alert) service extension overlay will also bring advanced broadband services to towns in the St. Helena, Washington and Tangipahoa Parishes.

The Company's southern Louisiana build out is funded by approximately $36.1 million in federal stimulus grants and loans.

Mr. Guy Nissenson, Chairman, President and CEO of NTS (News - Alert) commented, "We are very excited to have construction underway on our fiber network in southern Louisiana. During the past year we have made excellent progress expanding the reach of our FTTP Network to underserved communities in Texas and we are pleased to have the opportunity to bring our high speed broadband voice, video and internet offerings to similar markets in Louisiana."

In addition to breaking ground in Louisiana, NTS also announced that it has connected its first customers in Wilson, Texas and in Meadow, Texas. NTS's ongoing fiber build out, when completed, is expected to reach 19 new communities in Texas and Louisiana, bringing the Company's total FTTP passings to approximately 50,000. In addition to its presence in Wilson, NTS has established its FTTP network in the towns of Lubbock, Levelland, Smyer, Wolfforth, Littlefield, Burkburnett, Brownfield, Whitharral and Slaton, Texas.

Mr. Nissenson continued, "The rollout of our fiber network to new communities is proceeding on time and under budget and we are excited to have begun adding customers in our newest market, Wilson, Texas. As we bring our high speed triple play offering to new markets, we continue to see strong adoption rates as customers recognize the value and convenience of our high speed bandwidth. Consumers are increasingly reliant on the internet; both in residential and business applications, and the speed and accessibility of our network meets their expectations. We look forward to bringing advanced broadband to more customers in Wilson in the coming weeks."

Click here to view photo of our first customer in Wilson, Texas.

About NTS, Inc.

NTS is a provider of high speed broadband services, including internet access, digital cable TV programming and local and long distance telephone service to residential and business customers in northern Texas and southeastern Louisiana. NTS' Fiber-To-The-Premise (FTTP) network provides one of the fastest internet connections available. The Company currently has operations in Texas, Mississippi and Louisiana and also serves customers in Arizona, Colorado, Kansas, New Mexico and Oklahoma. For the Company's website, please visit: www.ntscom.com.

In addition to disclosing financial measures prepared in accordance with Accounting Principles Generally Accepted in the US (GAAP), this press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP EBITDAS (non-GAAP earnings before interest, taxes, depreciation, amortization and stock-based compensation, other expenses, acquisition costs and non-recurring loss). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

There are a number of limitations related to the use of non-GAAP EBITDAS. First, these non-GAAP financial measures exclude depreciation and amortization expenses that are recurring and significant non-recurring expenses. First, Depreciation and amortization have been, and will continue to be for the foreseeable future, a significant recurring expense with an impact upon our company notwithstanding the lack of immediate impact upon cash. Second, there is no assurance the components of the costs that we exclude in our calculation of non-GAAP operating loss do not differ from the components that our peer companies exclude when they report their results of operations. Third, there is no assurance we will avoid further non-recurring costs associated with other balance sheet items. Our management compensates for these limitations by providing specific reconciliation of GAAP amounts to these non-GAAP financial EBITDAS and evaluating these non-GAAP financial measures together with their most directly comparable financial measures calculated in accordance with GAAP. Readers should note the chart at the end of this release which sets forth how we calculate the non-GAAP EBITDAS.

This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." NTS' financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.

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