Hi,
You can do that in two ways..
1) Read the First XML File using SAX Api and get the Phone Number details and create a DOM Tree on the second XML File and insert the Node <phone> in the appropriate location..
2) Using JAXB is the second option..
Unmarshall the First and second XML Files and ise the get() method to fetch the Phone Number from the First XML and set the Phone Number and Marshall the root Object..
For this to work you need to define the <phone> as an optional element in your second XML 's DTD..
Hope this helps..
-Sateesh