Cellcom Announces Court's Final Decision Re Indirect Controlling Shareholders

Cellcom Israel

announced today that, following its previous report in relation to the Israeli court's approval of a creditors' arrangement for IDB Holding Corporation Ltd., or IDBH, the court's decision has come into force and the condition precedent regarding certain disclosure matters about the Elzstain - Extra group has been met. As a result of the creditors' arrangement (if implemented), IDB  Development Corporation Ltd., or IDBD (currently a wholly owned subsidiary of IDBH), will be controlled by the Elzstain - Extra group, led by Mr. Eduardo Elzstain and Mr. Mordechai Ben Moshe (subject to requisite approvals under applicable law). The court's ruling includes provisions for the interim period until the closing of the creditors' arrangement, including: a) the appointment of trustees in IDBH to carry out the execution of the creditors' arrangement and b) the termination of office of the directors currently serving on IDBH board of directors, and of the directors serving on IDBD's board of directors on behalf of IDBH.