Partner Awarded 3G Spectrum and Additional 2G Spectrum

date: December 18, 2001

Partner Communications Company announced today that the Tender Committee of the Ministry of Communications has informed the Company that as a result of an auction process held today Partner will be awarded a 2G band (1800 spectrum) and a 3G band of spectrum.

The awards are subject to final approval by the Minister of Communications.

Partner will pay 180 million NIS ($US 42.5 million) for the 2G spectrum in two installments. The first installment in the amount of 108 million NIS ($US 25.5 million), is payable 45 days after the spectrum will be formally awarded and the second installment is payable by the end of 2003. Cellcom was also awarded a 2G band (1800 spectrum) in this auction.

Partner will pay 220 million NIS ($US 52.0 million) for the 3G spectrum in five installments through 2006. The first installment in the amount of 68 million NIS ($US 16.1 million), is payable 45 days after the spectrum will be formally awarded. As part of the licensing process, Partner's license will be extended through 2012. Pelephone and Cellcom were also awarded 3G bands of spectrum.

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