Cellcom Israel Comments on Network Malfunction

NETANYA, Israel, December 2, 2010 /PRNewswire-FirstCall/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company"), announced today that it suffered a major network malfunction yesterday, December 1, 2010, that impacted the Company's subscribers' ability to utilize its services. The Company has since resumed full service. The Company announced that it will refund all its subscribers for all calls and SMS messages in Israel, in the last week (November 25, 2010 to December 1, 2010, including). This will impact the Company's reported results for this quarter.

In addition, a number of purported class actions have been announced. We have received filings of two purported class actions in that regard, for the sum of approximately NIS 25 millions and NIS 61 millions, but according to press reports, the amount claimed in such other purported class actions will be substantial. At this preliminary stage the Company cannot estimate the lawsuits chances of success.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.376 million subscribers (as at September 30, 2010) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc. As of 2006, Cellcom Israel, through its wholly owned subsidiary Cellcom Fixed Line Communications L.P., provides landline telephone communication services in Israel, in addition to data communication services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://www.cellcom.co.il

    Company Contact

    Yaacov Heen
    Chief Financial Officer
    investors@cellcom.co.il
    Tel: +972-52-998-9755

    Investor Relations Contact

    Porat Saar & Kristin Knies
    CCG Investor Relations Israel & US
    cellcom@ccgisrael.com
    Tel: +1-646-233-2161

SOURCE Cellcom Israel Ltd.