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Cellcom Israel Ltd. Announces Application of Current National Zoning Plan 36 Being Questioned

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2007-12-13 01:01:20     
Cellcom Israel Ltd.

Cellcom Israel Ltd. (NYSE: CEL) (the "Company"), announced that recently, several local planning and building authorities have been questioning the ability of Israeli cellular operators to receive building permits, in reliance on the current National Zoning Plan 36 (aimed at regulating the construction of cell sites throughout Israel) (the "Plan"), for cell sites operating in frequencies not specifically detailed in the frequencies charts attached to the Plan, and in a number of cases, have refused to provide a building permit for new such cell sites. That new approach is based on an argument that the Plan does not apply to such cell sites. According to that argument, building permits for such cell sites should be sought through other procedures (which are longer and cumbersome), such as extraordinary usage request or existing local specific zoning plans.

Since June 2002, following the approval of the Plan, building permits for the Company's cell sites (where required) have been issued in reliance on the Plan. Most of the Company's cell sites and many cell sites operated by other operators, operate in frequencies not specifically detailed in the Plan.

The Company believes that the Plan applies to all cell sites, whether or not they operate in specific frequencies, consistent with practice since 2002 and intends to defend its position vigorously. However, the Company is unable to assess the chances of success of the above argument.

In addition, as previously disclosed in the Company's reports, an amendment to the Plan is being prepared. The current proposal draft covers all new cell sites requiring a building permit, independently of the frequencies in which they operate. The Company cannot predict what the final proposed plan will provide

For additional details see our immediate report on Form 6-K from September 23, 2007 under "Risk Factors - Risks related to our business - We may not be able to obtain permits to construct cell sites" and under our annual report for 2006 on form 20-F under "Item 4. Information on the Company - B. Business Overview - Government Regulations - Permits for Cell Site Construction".

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its 3 million subscribers with a broad range of value added services including cellular and landline 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 HSDPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA 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 its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc. In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of 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.ircellcom.co.il

Company Contact:
Shiri Israeli,
Investor Relations Coordinator

Specialized in: Cellcom Israel
URL: http://investors.ircellcom.co.il
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