Cellcom Israel Announces Dismissal of Several Purported Class Actions Filed Against the Company

Cellcom Israel Ltd. CEL announced today the dismissal of several purported class actions filed against the Company in December 2010, by plaintiffs alleging to be the Company's subscribers, claiming compensation for damages in connection with the network malfunction that occurred on December 1, 2010. In December 2010 nine purported class actions were filed against the company in relation to such network malfunction. Three purported class actions (for the claimed amounts of approximately NIS 200 million, 57 million and NIS 22 million) were dismissed following their respective plaintiff's request. In May 2011, the court approved a procedural agreement among the plaintiffs of the other six lawsuits, according to which all but one of these six purported class actions will be withdrawn at their respective plaintiffs' request, and that the purported class action for the claimed amount of approximately NIS 61 million will remain pending and, to the extent requested by the other plaintiffs until June 2011, be amended to include causes of actions and remedies alleged in any of the other five purported class actions. One purported class action (for the claimed amount of approximately NIS 1.18 billion) was dismissed as part of a procedural agreement. Three purported class actions (for the claimed amounts of approximately NIS 1.32 billion, NIS 1.3 billion and NIS 990 million) were dismissed after having failed to comply with the Courts' orders regarding the procedural agreement. The plaintiffs in the eighth lawsuit (for the claimed amount of NIS 25 million) also requested to withdraw, as part of the procedural agreement. To date, no amendment to the remaining purported class action (according to the procedural agreement) was requested.