Cellcom Israel Announces Purported Class Actions Filed Against the Company

Dec 20, 2010, 06:31 ET from Cellcom Israel Ltd.

NETANYA, Israel, December 20, 2010 /PRNewswire-FirstCall/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company"), announced today that following its previous report dated December 2, 2010 regarding a major network malfunction and December 7 and 9, 2010 regarding purported class action lawsuits filed against the Company in that regard, two additional purported class action lawsuits were filed against the Company as follows:

1. In the District Court of Central Region, by a plaintiff alleging to be a subscriber of the Company, in connection with allegations that the Company unlawfully and in violation of its license and its agreement with its subscribers, failed to provide service to its subscribers during the network malfunction. The total amount claimed, if the lawsuit is certified as a class action, is estimated by the plaintiff to be NIS 1.32 billion.

2. In the District Court of Tel-Aviv-Jaffa, by two plaintiffs alleging to be subscribers of the Company, claiming refund of payments for services during the network malfunction and compensation for mental anguish, in connection with allegations that the Company unlawfully and in violation of its agreement with its subscribers, failed to provide service to its subscribers during the malfunction. The total amount claimed, if the lawsuit is certified as a class action, is estimated by the plaintiffs to be at least NIS 200 million.

At this preliminary stage, the Company is unable to assess the lawsuits' chances of success.

For additional details see our immediate reports on form 6-K dated December 2, 7 and 9, 2010.

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.