Cellcom Israel Announces Labor Dispute Involving Union Representing Company's Employees

Cellcom Israel Ltd.

announced today the receipt of a labor dispute announcement by the Histadrut, the union representing the Company's employees. Under the announcement, the Company's employees would be entitled to take organizational steps (including a strike), as of February 7, 2016. The Company rejects the claims made as a basis for the announcement. At this preliminary stage, the company is unable to assess the effects of this announcement. For additional details see the Company's most recent annual report for the year ended December 31, 2014 on Form 20-F, filed on March 16, 2015, under "Item 3. Key Information - D. Risk Factors - Risks Related to our Business - The unionizing of our employees may impede necessary organizational and personnel changes, result in increased costs or disruption to our operation" and "Item 6. Directors, senior management and employees - D. Employees." About Cellcom Israel Cellcom Israel Ltd., established in 1994, is the largest Israeli cellular provider; Cellcom Israel provides its approximately 2.832 million subscribers (as at September 30, 2015) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel