012 Smile.Communications Announces Implementation of the Gronau Committee Recommendations

1. Increase the competition within theIsrael cellular communication market, by granting MVNO licenses.

2. Cellular operators will not be allowed to enter the international long distance market unless an international communication services provider will be granted an MVNO license, and subject to changes in the tariffs of the international calls made by cellular phone users.

3. Increase the competition within the landline communication services, by enforcing Local Loop Unbundling (LLU) of the infrastructure of Bezeq, The Israel Telecommunication Corp. Ltd., the incumbent local telephony provider inIsrael. Following such LLU, Bezeq's subsidiaries will be allowed to offer bundled services, subject to several additional terms and conditions.

If fully implemented, these changes will allow the Company to compete in the mobile market and in the IPTV sector and improve its competitive position in the domestic land lines market.

About 012 Smile.Communications:

012 Smile.Communications is a growth-oriented communication services provider inIsrael with a leading market position, offering a wide range of broadband and traditional voice services. Its broadband services include broadband Internet access with a suite of value-added services, specialized data services and server hosting, as well as new innovative services such as local telephony via voice over broadband and a WiFi network of hotspots acrossIsrael. Traditional voice services include outgoing and incoming international telephony, hubbing, roaming and signaling and calling card services. 012 Smile.Communications services residential and business customers, as well as Israeli cellular operators and international communication services providers through its integrated multipurpose network, which allows it to provide services to almost all of the homes and businesses inIsrael.

012 Smile is a 72.4 % owned subsidiary of Internet Gold Golden Lines Ltd. (NASDAQ: IGLD) one ofIsrael's leading communications groups with a major presence across all Internet-related sectors. In addition to 012 Smile, its 100% owned Smile.Media subsidiary manages a growing portfolio of Internet portals and e-Commerce sites. Internet Gold and 012 Smile are part of the Eurocom Communications Group. 012 Smile's shares trade on the NASDAQ Global Market and on the Tel Aviv Stock Exchange.

For additional information about 012 Smile.Communications Ltd., please visit the Company's investors' site at http://www.012.net.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments, the failure to manage growth and other risks detailed from time to time in 012 Smile.Communications' filings with the Securities Exchange Commission. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

    For further information, please contact:
    Ms. Idit Azulay
    012 Smile.Communications Ltd
    +972-72-2003848
    i.azulay@smile.net.il

SOURCE 012 Smile.communications Ltd.

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