B Communication — Capital/Financing Update 2007

Nov 26, 2007

Press Release

Source: 012 SMILE.COMMUNICATIONS LTD

012 SMILE.COMMUNICATIONS LTD. ANNOUNCES PUBLICATION OF A PROSPECTUS FOR THE LISTING OF ITS SERIES A DEBENTURES ON THE TEL AVIV STOCK EXCHANGE

Petach Tikva, Israel, November 26, 2007 012 SMILE.COMMUNICATIONS LTD. (NASDAQ: SMLC News) announced that it published on November, 21, 2007 a prospectus (the "Listing Prospectus") in Israel for the listing for trade of its outstanding Series A Debentures on the Tel Aviv Stock Exchange ("TASE"). The Series A Debentures, in an aggregate principal amount of approximately NIS 424,999,800, were issued by 012 Smile.Communications Ltd earlier this year to investors in Israel in several private placements.

The publication of the Listing Prospectus followed the approval by the Israel Securities Authority ("ISA") and by the TASE. The listing for trade on the TASE of the Series A Debentures will occur on November, 28, 2007.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About 012 Smile.Communications

012 Smile.Communications is a growth-oriented communication services provider in Israel with a leading market position, offering a wide range of broadband and traditional voice services. Its broadband services include broadband Internet access with a suite of value-added services, specialized data services and server hosting, as well as new innovative services such as local telephony via voice over broadband and a WiFi network of hotspots across Israel. Traditional voice services include outgoing and incoming international telephony, hubbing, roaming and signaling and calling card services. 012 Smile.Communications services residential and business customers, as well as Israeli cellular operators and international communication services providers through its integrated multipurpose network, which allows it to provide services to almost all of the homes and businesses in Israel.

012 Smile is a 73.3% owned subsidiary of Internet Gold (NASDAQ: IGLD) one of Israel's leading communications groups with a major presence across all Internet-related sectors. In addition to 012 Smile, its 100% owned Smile.Media subsidiary manages a growing portfolio of Internet portals and e-Commerce sites.

Internet Gold and 012 Smile are part of the Eurocom Communications Group. 012 Smile's shares trade on the NASDAQ Global Market and on the Tel Aviv Stock Exchange.

For additional information about 012 Smile.Communications Ltd., please visit the company's investors' site at www.012.net

For further information, please contact:

Ms. Amanda Kentridge 012 Smile.Communications Ltd +972 72-200-2012 investori@012.net