Cellcom Israel Announces Independent Appraisal of Netvision Received

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Jun 14, 2011, 02:37 ET

NETANYA, Israel, June 14, 2011 /PRNewswire/ --

Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company"), announced today that following the previously reported negotiations with Netvision Ltd., or Netvision, for its merger with the Company's subsidiary, the Company received an appraisal of the fair market value of Netvision in connection with such merger, prepared by a reputable independent Israeli financial consulting firm nominated jointly by the Company and Netvision, or the appraiser. According to the appraisal, Netvision's fair market value as of March 31, 2011 is NIS 1,538,378 thousands. Such appraisal includes Netvision's value on a "stand alone" basis and part of the value of the synergy with the Company, which the appraiser determined should be attributed to Netvision, if the merger is consummated. In addition, on June 13, 2011 the Company's and Netvision's audit committees approved the transaction.

The execution of the contemplated merger agreement remains subject to, among other things, approval by both companies' boards of directors. If the execution of the merger agreement is so approved, closing of the transaction would be subject, among other things, to approval of the shareholders of both companies, including by a majority of the shareholders voting on the matter who are not affiliated with IDB, and certain required regulatory approvals. We can provide no assurance that we will enter into any transaction or that such transaction will be consummated.

For additional details on the proposed merger transaction with Netvision and the conditions for its consummation see the Company's most recent annual report on Form 20-F for the year ended December 31, 2010, under "Item 5. Operating Results - Overview - Recent Developments".

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

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