B Communication — Legal Proceedings Report 2008

Mar 3, 2008

012 Smile.Communications Ltd.

3.3.2008

To: The Tel Aviv Stock Exchange To: The Israeli Securities Authority

Re: Immediate Report

012 SMILE.COMMUNICATIONS ANNOUNCES A PURPORTED CLASS ACTION FILED AGAINST THE COMPANY

PETACH TIKVA, Israel, March 3, 2008 - 012 Smile.Communications Ltd. (NASDAQ Global Market and TASE: SMLC) (the “ Company ”) today announced that on February 19, 2008 it was served with a purported class action lawsuit alleging that the Company unlawfully charged consumers in excess of the tariffs published by it with respect to its calling card services. The lawsuit was filed in the District Court of Haifa,

The Company is in the initial stage of reviewing and evaluating this lawsuit and has until April 27, 2008 to file its response. If the lawsuit is certified as a class action, the approximate claim is estimated by the plaintiff to be NIS 16,000,000.

012 Smile.Communications Ltd.