Cellcom Israel Ltd (CEL)

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Cellcom Israel Announces Purported Class Action Decided Against the Company
Grupo Iusacell DE Cv (NYSE:CEL)

NETANYA, Israel, December 8, 2011 /PRNewswire/ --

Cellcom Israel Ltd. (NYSE: CEL) (the "Company") announced today that a purported class action filed against the Company in March 2008, in the District Court of Central Region was decided against the Company. The lawsuit was approved as class action in August 2009, in relation to the allegation that the Company breached the agreements with its subscribers by charging them for a call details records service, previously provided free of charge, without obtaining their consent. The total amount claimed was estimated by the plaintiffs to be approximately NIS 440 million. The Court accepted the allegation and ordered the Company to repay its customers the sum charged for the service in the amount of approximately NIS 22 million plus interest and linkage differences from the date of each payment made by the subscribers, an amount of NIS 200,000 to be paid to the plaintiffs and a fee for the plaintiffs' attorney equal to 10% of the sum to be repaid plus VAT.

The Company believes the decision to be mistaken and intends to appeal the decision and request to stay proceedings until the appeal is decided.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.391 million subscribers (as at September 30, 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 [e-mail] Tel: [phone] Investor Relations Contact Porat Saar CCG Investor Relations Israel & US [e-mail] Tel: [phone]

SOURCE Cellcom Israel Ltd.