Cellcom Israel Announces Liquidation Request Against Golan Telecom

NETANYA, Israel, November 29, 2016 /PRNewswire/ --

Cellcom Israel Ltd. CEL CEL (the "Company") announces that following previous reports on the matter, the Company filed today a request to appoint an interim liquidator to Golan Telecom Ltd., or Golan, and will file a liquidation request against Golan tomorrow (due to procedural reasons), following Golan's failure to pay the Company all due amounts.

The Company cannot estimate what the decision in such requests will be, or their impact on the Company's ability to collect amounts owed by Golan or to generate future revenues from Golan. As previously reported, a substantial reduction of the future revenues from Golan will have a material adverse effect on the Company's revenues and results of operations.

For additional details see the Company's annual report for the year ended December 31, 2015, dated March 21, 2016, on Form 20-F under "Item 3 Key Information - D. Risk Factors- Risks Related to our Business -We face intense competition in all aspects of our business" and "- Risks Related to the Proposed Acquisition of Golan Telecom Ltd." and under "Item 4. Information on the Company - B. Business Overview - General - Agreement for the Purchase of Golan", and under "-Competition - Cellular" and " - Government Regulation -Additional MNOs", and the Company's current reports on Form 6-K dated August 10, 2016 under "Other developments during the second quarter of 2016 and subsequent to the end of the reporting period - Golan Telecom", November 14, 2016 under "Other developments during the third quarter of 2016 and subsequent to the end of the reporting period - Golan Telecom" and November 27, 2016.

About Cellcom Israel  

Cellcom Israel Ltd., established in 1994, is the largest Israeli cellular provider; Cellcom Israel provides its approximately 2.822 million cellular subscribers (as at September 30, 2016) with a broad range of value added services including cellular 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 LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE 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 technical support, account information, direct to the door parcel delivery services, internet and fax services, dedicated centers for hearing impaired, etc. Cellcom Israel further provides OTT TV services (as of December 2014), internet infrastructure (as of February 2015) and connectivity services and international calling services, as well as 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://investors.cellcom.co.il/

Company Contact
Shlomi Fruhling
Chief Financial Officer
investors@cellcom.co.il
Tel: +972 52 998 9755    

Investor Relations Contact
Ehud Helft
GK Investor & Public Relations  In partnership with
LHA
cellcom@GKIR.com
Tel: +1 617 418 3096

SOURCE Cellcom Israel Ltd.