Cellcom Reports Israeli Supreme Court Approves Settlement Agreement in Class Action

Cellcom Israel Ltd.

(hereinafter: the "Company"), announced today the Israeli Supreme Court approved a settlement agreement executed and reported in May 2012. The settlement agreement related to (1) a lawsuit approved as a class action in November 2010 (and appealed to the Israeli supreme Court) against 013 Netvision Ltd., or Netvision, a wholly owned subsidiary of the Company, and two other long distance operators, for a total claimed amount of approximately NIS 2.2 billion, of which approximately NIS 818 million was attributed to Netvision, and (2) a purported class action filed against the same defendants in February 2012, for an amount of approximately NIS 2.7 billion claimed from each of the defendants. The plaintiffs in both the class action and the purported class action alleged that the defendants misled the purchasers of certain long distance prepaid calling cards as to the amount of minutes included in those cards. Under the settlement agreement, Netvision and another defendant will provide certain long distance prepaid calling cards, free of charge, for an aggregate amount which is not material to the Company, and will further provide certain information in relation to the usage of the