B Communication — Report Publication Announcement 2008

Oct 28, 2008

012 Smile.Communications Announces Posting of Annual Report on its Website

PETACH TIKVA, Israel, October 28 - 012 Smile.Communications (NASDAQ: SMLC - News ; TASE: SMLC), a growth-oriented provider of communication services in Israel, today announced that it has posted its annual report containing its audited consolidated financial statements for the year ended December 31, 2007 on its website (http://www.012.net). The annual report on Form 20-F/A was filed with the U.S. Securities and Exchange Commission on September 15, 2008 and is also available on its website (http://www.sec.gov). Shareholders may receive a hard copy of the annual report free of charge upon request.

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 72.4 % owned subsidiary of Internet Gold Golden Lines Ltd. (NASDAQ: IGLD - News) 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 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 http://www.012.net.

For further information, please contact:

Ms. Idit Azulay

012 Smile.Communications Ltd

+972-72-2003848

i.azulay@smile.net.il