C-Phone Corporation Requests Hearing to Review De-listing From the Nasdaq Smallcap Market; If Wind-down Continues, Possible That No Proceeds Will be Available to Shareholders.

Business Editors

WILMINGTON, N.C.--(BUSINESS WIRE)--Dec. 13, 2000

C-Phone Corporation (NASDAQ: "CFON") today announced that it has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Nasdaq Staff Determination, dated September 13, 2000, to delist the Company's common stock on The Nasdaq SmallCap Market at the opening of business on December 14, 2000. The Staff Determination stated that the Company failed, for a period of 30 consecutive trading days, to comply with the $1.00 minimum bid price requirement for continued listing set forth in Marketplace Rule 4450 (a)(5) and had until December 12, 2000 to regain compliance with the Rule. The Company earlier announced, when it appeared that the Company might not be able to regain such compliance, that it expected to lose its listing. On December 12, 2000, the common stock closed at $0.09375 per share.

Paul Albritton, President and CEO, stated " While we are and have been working on a plan which may enable us to regain compliance, we cannot provide any assurance that such a plan will in fact be consummated or, if consummated, that the Nasdaq Listing Qualifications Panel will grant the Company's request for continued listing. Further, if the key elements of a plan do not become definitive in the next week or two, the Company plans to withdraw its hearing request to the Nasdaq Panel, cease its remaining operations and complete its winding down. If the Company winds down, it is premature to determine whether there will be any remaining proceeds for distribution to the Company's shareholders."

About C-Phone Corporation:

C-Phone Corporation has been a provider of video communications products for general business and the security, education and healthcare markets. Information on the Company and its products can be found at www.cphone.com.

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including among others those identified in C-Phone's Annual Report on Form 10-KSB for the fiscal year ended February 29, 2000, C-Phone's Quarterly Report on Form 10-QSB for the fiscal quarter ended August 31, 2000 and C-Phone's Current Report on Form 8-K dated November 20, 2000, as well as factors such as future economic conditions, the willingness of customers to continue to purchase C-Phone's products, the ability of C-Phone to sell or license its technology, the ability of C-Phone to sell its remaining inventory and assets, the ability of C-Phone to consummate one or more transactions that will allow it to continue as an operating company and the ability of C-Phone to obtain additional financial resources. C-Phone undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of other unanticipated events.

This release and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com.