B Communication

Share Issue/Capital Change • Aug 12, 2025

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

August 11, 2025

B COMMUNICATIONS LTD

("The Company")

To:

Israel Securities Authority Via MAGNA

Tel Aviv Stock Exchange Ltd. Via MAGNA

Dear Sir/Madam,

Subject: Sale of Shares of Subsidiary – BEZEQ THE ISRAELI TELECOMMUNICATION CORP. LTD. ("BEZEQ")

The Company is honored to announce that on August 11, 2025, it sold, in an off-exchange transaction, 160,000,000 ordinary shares of BEZEQ, each with a par value of NIS 1 ("the Sold BEZEQ Shares"), constituting approximately 5.77% of the issued and paid-up share capital of BEZEQ, to several foreign and Israeli institutional entities. Following the sale of the Sold BEZEQ Shares and as of this date, the Company holds approximately 15.91% of the issued and paid-up share capital of BEZEQ.

In consideration for the Sold BEZEQ Shares, the Company received NIS 6.03 for each BEZEQ share, with the total consideration for the sold shares amounting to approximately NIS 965 million ("the Consideration"). The Company intends to use the Consideration for the early redemption of its debentures (Series 7 of the Company), subject to and in accordance with the terms set forth in the debenture trust deed as mentioned.

It should be noted that the Company notified the Ministry of Communications about the sale of the Sold BEZEQ Shares, and that following the aforementioned sale, the Company continues to hold the controlling means in BEZEQ.

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

As part of the aforementioned sale, the Company undertook towards the transaction's lending bank not to conduct transactions in BEZEQ shares it holds after the aforementioned sale, for a period of 90 days from the completion date of the sale, noting that the accompanying underwriter has the authority to release the Company from this obligation.

Respectfully,

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

B COMMUNICATIONS LTD

By: Tomer Rabid, CEO

FOOTNOTE:

¹⁰¹ As published by the Company on September 16, 2024 (Reference No.: 2024-01-603685).

¹⁰² For further details regarding the provisions of the Communications Order and the control permit, see Section 1.1.4 in Chapter A of the Company's periodic report for 2024, published on March 12, 2025 (Reference No.: 2025-01-016387).