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

Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company"), 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the plaintiffs of the other six lawsuits, according to which all but one of these six purported class actions will be withdrawn at their respective plaintiffs' request, and that the purported class action for the claimed amount of approximately NIS 61 million will remain pending and, to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.

For additional details see the Company's annual report on Form 20-F for the year ended December 31, 2010, under "Item 8 - Financial Information - A. Consolidated Statements and Other Financial Information -Legal Proceedings".

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.395 million subscribers (as at March 31, 2011) 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 HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, 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. As of 2006, Cellcom Israel, through its wholly owned subsidiary Cellcom Fixed Line Communications L.P., provides 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://www.cellcom.co.il

        
           Company Contact
           Yaacov Heen
           Chief Financial Officer
           investors@cellcom.co.il
           Tel: +972-52-998-9755

           Investor Relations Contact
           Porat Saar
           CCG Investor Relations Israel& US
           cellcom@ccgisrael.com
           Tel: +1-646-233-2161

SOURCE Cellcom Israel Ltd.