Cellcom Israel Ltd. — Share Issue/Capital Change 2018

Jan 31, 2018

CELLCOM ISRAEL ANNOUNCES KOOR COMPLETED TRANSFER OF 5% OF THE COMPANY'S SHARE CAPITAL TO ISRAELI SHAREHOLDERS

NETANYA, Israel, January 31, 2018 – Cellcom Israel Ltd. (NYSE: CEL) (the "Company") announced today the completion of the previously reported transaction for the transfer (through a lending transaction) of 5% of the Company's outstanding share capital from Koor Industries Ltd., the Company's controlling shareholder, to two sole purpose companies each wholly owned by an Israeli shareholder.

For additional details see the Company's annual report for the year ended December 31, 2016 on Form 20-F dated March 20, 2017 under "Item 4. Information on the Company – B. Business Overview – Government Regulations – Cellular Segment – Our Cellular License", and the Company's current report on Form 6K dated January 2 and 22, 2018.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the largest Israeli cellular provider; Cellcom Israel provides its approximately 2.805 million cellular subscribers (as at September 30, 2017) with a broad range of value added services including cellular 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 LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE 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 technical support, account information, direct to the door parcel delivery services, internet and fax services, dedicated centers for hearing impaired, etc. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone communications services in Israel, in addition to data communications 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://investors.cellcom.co.il.

Company Contact

Shlomi Fruhling Chief Financial Officer investors@cellcom.co.il Tel: +972 52 998 9735

Investor Relations Contact

Ehud Helft GK Investor & Public Relations In partnership with LHA cellcom@GKIR.com Tel: +1 617 418 3096