Bezeq Announced Distribution not in Compliance With Earnings Test

Dec 20, 2010, 01:30 ET from Bezeq

TEL AVIV, Israel, December 20, 2010 /PRNewswire-FirstCall/ -- Bezeq The Israel Telecommunication Corp., Limited (TASE: BEZQ), Israel's leading telecommunications provider, announced that the Board of Directors of the Company is reviewing the possibility of a capital distribution not in compliance with the "earnings test" at the approval of the Courts in accordance with section 303 of the Companies Law, 5759-1999 ("capital reduction"), in the scope of NIS 3 billion. The Board of Directors is reviewing the timing of the distribution and its implementation - through a cash distribution and/or a share repurchase program. The Board of Directors intends to continue reviewing this matter during the coming weeks.

About Bezeq The Israel Telecommunication Corp.

Bezeq is Israel's leading telecommunications service provider. Established in 1984, the Company has led Israel into the new era of communications, based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of communications services including domestic, international and cellular phone services; broadband Internet and other data communications and transmission services; satellite and fixed-line-based multi-channel TV; and corporate networks.

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