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Cellcom Israel Ltd.

Cellcom Israel Announces Dismissal of a Purported Class Action

today that a purported class action filed against the Company (and another Israeli cellular operator) in the District Court of Tel-Aviv-Jaffa on December 2002, in connection with the defendants' incoming call tariff to subscribers of other operators when calling subscribers of the defendants during the period before the regulation of interconnect fees, was dismissed with prejudice. Had the lawsuit been certified as a class action, the amount claimed was estimated by the plaintiff to be NIS 1.6 billion.

For additional details see the Company's most recent annual report for the year ended...

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