Immediate Report – Examination of the Golan Telecom Ltd. Split-up Plan

The Company is pleased to announce that yesterday, the Company's Board of Directors resolved to authorize the Company's management to examine, together with Golan Telecom Ltd., a subsidiary of the Company ("Golan"), the listing of shares of Golan on the Tel Aviv Stock Exchange, as part of a structural change in which Golan will be split from the Company.

The resolution held by the Board of Directors of the Company is a preliminary resolution and is intended to enable the management of the Company and the management of Golan to examine the feasibility and planning of such split and to present their recommendations to the relevant Boards of Directors. It further should be noted that such a process is complex, and includes, inter alia, a distribution in kind of Golan shares to the shareholders of the Company, the preparation and publication of a Prospectus of Golan after obtaining the approval of the Stock Exchange and the permit of the Securities Authority for purpose thereof, obtaining a pre-ruling from the Tax Authority and/or compliance with the Income Tax Ordinance in respect of splits, as well as additional terms. Accordingly, as of today, there is no certainty that such proceeding will materialize and if it does, what the timetable will be for its execution.