News Releases

Cellcom Israel Ltd. Announces it was Served With a Lawsuit and Requests for Certification of the Lawsuit as a Class Action

NETANYA, Israel, February 28 /PRNewswire-FirstCall/ -- Cellcom Israel Ltd. (NYSE: CEL - News; the "Company"), announced that on February 27, 2007, it was served with a lawsuit and a request for certification of the lawsuit as a class action, which were filed against the Company in the District Court of Tel-Aviv, by a plaintiff who claims to be a subscriber of the Company.

The plaintiff claims that the Company unlawfully collected Value Added Tax from its subscribers who are residents of the city of Eilat in Israel and that the Company misled and failed to disclose same.

If the lawsuit is certified as a class action, the amount claimed is estimated by the plaintiff to be approximately NIS 33 million, calculated by multiplying an alleged damage of NIS 6,600 per subscriber by the number of the subscribers allegedly damaged, estimated by the plaintiff to be at least 5,000. The plaintiff is maintaining the right to increase the sum after receiving further information.

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

It is noted that on May 2001 a lawsuit and a request for certification of the lawsuit as a class action, alleging, inter alia, that the Company unlawfully collected Value Added Taxes from its subscribers who were residents of or while staying at the city of Eilat in Israel, were denied with the consent of the plaintiffs therein.

About Cellcom Israel Ltd.

Cellcom is the leading Israeli cellular company; Cellcom entered the market in 1994 and today provides services to more than 2.8 million subscribers representing approximately 34% market share. Cellcom offers its subscribers a broad range of value added services including video streaming services, JAVA games, Multi Media Messages, content and multimedia services and more. In addition, Cellcom offers a wide range of cellular telephony services to both the private and business sectors including virtual private network (VPN), global roaming, voice-activated dialing and conference calling. Cellcom operates UMTS/HSDPA, GSM/GPRS/EDGE and TDMA networks. Cellcom also offers landline transmission and data services to business customers and telecommunications operators and, since July 2006, offers landline telephony services to selected businesses. For additional information please visit the Company's website http://www.cellcom.co.il/Cultures/en-US/InvestorRelations.

Company Contact
Shiri Israeli
Investor Relations Coordinator
investors@cellcom.co.il
Tel: +972-52-998-9755

Investor Relations Contact
Ehud Helft / Ed Job
CCGK Investor Relations
ehud@gkir.com / ed.job@ccgir.com
Tel: (US)+1-866-704-6710/1
+1-646-213-1914

Source: Cellcom Israel Ltd.