C-Phone Corporation Clarifies Distribution Plans for TV Set-Top Device
                               for Internet Access



WILMINGTON, N.C., May 14, 1998 -- C-Phone Corporation (Nasdaq: CFON), as
previously announced in a press release issued May 13, 1998, has introduced
C-Phone ITV(TM), a TV set-top device that provides Internet access using a
television and a regular analog phone line. In clarification of its previous
release, the Company states that, to date, it has supplied limited quantities of
this device to certain of its business and institutional partners. Retail
distribution plans for the device are being formulated.

In an unrelated development, the Company announced today that the holders of all
of the 200,000 warrants the Company issued in its 1994 initial public offering
have irrevocably agreed to exercise all of such warrants on or before the close
of business on May 15, 1998. To induce such exercise, the Company reduced the
exercise price of the warrants from $8.40 to $6.00 per share, in consideration
for shortening the expiration date of the Warrants from August 19, 1999 to May
21, 1998 and eliminating the "cashless" exercise right under which the holders
could have exercised such warrants by surrender of a portion thereof. As a
result, the Company will receive aggregate proceeds of $1,200,000.

C-Phone Corporation (http://www.cphone.com) is an innovator in the design and
manufacture of video communication products. The Company continues to expand its
TV set-top video phone product line of competitively priced, easy-to-use TV
set-top based information devices which utilize the television and universally
available phone services for connections to deliver video, voice and data.