Cellcom Israel Announces Dissmisal of Purported Class Action Filed Against the Company

Cellcom Israel Ltd.

announced that a purported class action filed against the Company and two other cellular operators, in December 2007, was dismissed without prejudice, at the request of the parties. The purported class action lawsuit filed by plaintiffs alleging that the defendants have created environmental hazards by unlawfully building cell sites and therefore demanded that the defendants will compensate the public for certain damages, dismantle existing unlawfully built cell sites and refrain from unlawfully building new cell sites. Had the lawsuit been certified as a class action, the compensation claimed from the defendants was estimated by the plaintiffs to be NIS 1 billion. Under the parties' agreement, which was approved by the court, the defendants will make a donation to certain non-profit organizations in an amount which is not material to the Company.