Last updated on April 16, 2014 at 11:09 EDT

Cellcom Israel Announces Preliminary Results for the Fourth Quarter of 2012

February 7, 2013

NETANYA, Israel, February 7, 2013 /PRNewswire/ –

Cellcom Israel Ltd. (NYSE: CEL) (the “Company”) announced today its preliminary
(unaudited) results for the fourth quarter of 2012. The Company provides its preliminary
results at the request of its controlling shareholder. The expected results are presented
below. The expected results reflect the previously reported trends, including the
heightened competition and material price erosion, as well as the Company’s efficiency
measures. These trends are expected to further adversely affect the Company’s results of
operations in Q1/2013 compared to Q4/2012. The Company will continue to implement
efficiency measures in an effort to mitigate such effects. The Company will publish its
2012 annual report and full and final financial results for the full year 2012 (audited)
and for the fourth quarter 2012 at the beginning of March 2013.

                               Q4/2012 preliminary results
                                    (in NIS millions)

        Revenues                       1,370-1,390
        Revenues from services         1,040-1,050
        Net income                       100-115
        EBITDA*                          360-375
        FCF**                              288

*EBITDA is a non-IFRS measure and is defined as income before financing income
(expenses), net; other income (expenses), net; income tax; depreciation and amortization
and share based payments. This is an accepted measure in the communications industry.

**Free cash flow is a non-IFRS measure and is defined as the net cash provided by
operating activities minus the net cash used in investing activities excluding short-term
investment in tradable debentures and deposits and proceeds from sales of such debentures
(including interest received in relation to such debentures) and deposits.

For additional details regarding the Company’s usage of non-IFRS financial measures
see the Company’s current report on the Company’s results of operations in the third
quarter 2012, on Form 6-K filed on November 13, 2012, under the same title.

Forward looking statements

The information included in this press release contains, or may be deemed to contain,
forward-looking statements (as defined in the U.S. Private Securities Litigation Reform
Act of 1995 and the Israeli Securities Law, 1968). Said forward-looking statements,
relating to the Company’s expected results for Q4/2012 and expectations as to trends in
2013, are subject to uncertainties and assumptions. In particular, the Q4/2012 final
results of operations are currently still in the processing stage, and are subject to
completion and their audit by our independent auditors and any unexpected events which
might affect such results, and could change. Our results for 2013 are subject to the risks
identified in our most recent annual report on Form 20-F filed on March 7, 2012, under
Item 3.D. “Risk Factors” and any unexpected events which might affect such results. These
factors could lead to materially different results than that set forth above.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider;
Cellcom Israel provides its approximately 3.338 million subscribers (as at September 30,
2012) 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 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 technical support, account information, direct to the door
parcel delivery services, internet and fax services, dedicated centers for hearing
impaired, etc. Cellcom Israel further provides through its wholly owned subsidiaries
internet connectivity services and international calling services, as well as 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 [http://investors.ircellcom.co.il/events.cfm ]

        Company Contact
        Yaacov Heen
        Chief Financial Officer
        Tel: +972-52-998-9755

        Investor Relations Contact
        Porat Saar
        CCG Investor Relations Israel & US
        Tel: +1-646-233-2161

SOURCE Cellcom Israel Ltd.

Source: PR Newswire