NETANYA, Israel, December 11 /PRNewswire-FirstCall/ -- Cellcom Israel Ltd. ('Company') (NYSE: CEL) announced today that Discount Investment Corporation Ltd. ('DIC'), its controlling shareholder, has announced that it has entered today into an agreement to sell 2,300,000 shares of the Company, constituting approximately 2.3% of the Company's issued share capital, for a total consideration of approximately NIS 199 million (subject to a certain contingent increase of the consideration) in cash to a financial institution and that the purchaser has informed DIC of its intention to place such shares for sale outside the United States to non-US investors. The agreement further provides that DIC will not dispose of the Company's shares during 55 days following the closing date, unless DIC obtained the consent of the said financial institution purchaser. The sale is scheduled to be completed today, following which DIC will hold approximately 47.9% of the Company's issued share capital and approximately 53.3% of the voting rights in the Company.

The sold shares have not been and will not be registered under the U.S. Securities Act of 1933. Accordingly, these shares may not be offered or sold in the United States

DIC also notified the Company that it views its holding in the Company as a long term investment, and intends to continue to control the Company. Such intention is subject to future circumstances including conditions in the capital markets and DIC's investment strategy.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.157 million subscribers (as at September 30, 2008) 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 the fastest high speed content transmission available in the world, 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. In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of 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://investors.ircellcom.co.il

    Company Contact:
    Shiri Israeli,
    Investor Relations Coordinator,
    investors@cellcom.co.il,
    Tel: +972-52-998-9755
    Investor Relations Contact:
    Ehud Helft / Ed Job,
    CCGK Investor Relations,
    ehud@gkir.com / ed.job@ccgir.com,
    Tel: (US) +1-866-704-6710 / +1-646-213-1914

SOURCE Cellcom Israel Ltd.