Cellcom Israel Ltd. — Major Shareholding Notification 2011

Jun 29, 2011

CELLCOM ISRAEL LTD. ANNOUNCES SALE OF PART OF ITS ISSUED SHARE CAPITAL BY CONTROLLING SHAREHOLDER

Netanya, Israel – June 29, 2011 – Cellcom Israel Ltd. (“Company”) (NYSE: CEL) announced today that, further to its report yesterday that Discount Investment Corporation Ltd., or DIC, the Company's controlling shareholder, announced that it has entered into an agreement with a financial institution to sell 3,260,870 shares of Company stock, constituting approximately 3.3% of the Company’s issued share capital, and option for the sale of an additional 1,700,000 shares, constituting approximately 1.7% of the Company’s issued share capital, DIC announced today that such option was exercised by the purchaser and the transaction was completed yesterday for a total consideration of approximately NIS 456 million. Following the completion of the transaction, DIC holds approximately 43.3% of the Company’s issued share capital (approximately 46.7% of the Company’s voting rights).

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

For additional details please see the Company's current reports on form 6-K filed on June 28, 2011.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.395 million subscribers (as at March 31, 2011) 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 advanced high speed broadband multimedia services, 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. As of 2006, Cellcom Israel, through its wholly owned subsidiary Cellcom Fixed Line Communications L.P., provides 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://www.cellcom.co.il

Company Contact

Yaacov Heen

Chief Financial Officer

investors@cellcom.co.il

Tel: +972 52 998 9755

Investor Relations Contact

Porat Saar

CCG Investor Relations Israel& US

cellcom@ccgisrael.com

Tel: +1 646 233 2161