Cellcom Israel Announces Purported Class Action Decided Against the Company

Cellcom Israel Ltd. CEL announced today that a purported class action filed against the Company in March 2008, in the District Court of Central Region was decided against the Company. The lawsuit was approved as class action in August 2009, in relation to the allegation that the Company breached the agreements with its subscribers by charging them for a call details records service, previously provided free of charge, without obtaining their consent. The total amount claimed was estimated by the plaintiffs to be approximately NIS 440 million. The Court accepted the allegation and ordered the Company to repay its customers the sum charged for the service in the amount of approximately NIS 22 million plus interest and linkage differences from the date of each payment made by the subscribers, an amount of NIS 200,000 to be paid to the plaintiffs and a fee for the plaintiffs' attorney equal to 10% of the sum to be repaid plus VAT.