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012 Smile.Communications Ltd Announces That it has Been Notified of a Proposed Class Action Lawsuit With Respect to its International Calling Cards

PETACH TIKVA, Israel, May 4 /PRNewswire-FirstCall/ -- Internet Gold - Golden Lines ltd reports that her it's subsidiary 012 Smile.Communications , a growth-oriented provider of communication services in Israel, today announced that the company received a monetary claim and an application for permission to file it as a class action lawsuit against it, as well as against Netvision 013 Baraq Ltd.

The claim was filed in the Petach Tikva District Court by a citizen of the Philippines who is employed in Israel, and who claims to have used the international calling cards of two international telephony companies to call abroad. The purported plaintiff claims that the two international telephony companies improperly calculated the length of the international calls in whole-minutes units rather than in one-second units. The purported plaintiff also alleges that he and others were over charged due to a longer call duration calculation than the actual duration of the calls and that he and others were not informed about the per-minute calculation policy.

The purported plaintiff seeks court permission to file the claim as a class action lawsuit by virtue of Israel's Class Actions Law on behalf of groups of persons that include anyone who purchased calling cards distributed by one of the two international telephony companies during the seven year period prior to filing the claim or during the term of the proceedings. The purported plaintiff has alleged that the damages caused to all members of the purported class by both companies total approximately NIS 158 million.

The company has not had an opportunity to review the claims with its counsel and is unable to provide any comments at this time.

About Internet Gold

Internet Gold is one of Israel's leading communications groups with a major presence across all Internet-related sectors. Its 72.4% owned subsidiary, 012 Smile.Communications Ltd., is one of Israel's major Internet and international telephony service providers, and one of the largest providers of enterprise/IT integration services. Its 100% owned subsidiary, Smile.Media Ltd., manages a growing portfolio of Internet portals and e- Commerce sites.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments, the failure to manage growth and other risks detailed from time to time in Company's filings with the Securities Exchange Commission. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

For further information, please contact: Mor Dagan - Investor Relationsmor@km-ir.co.il / Tel:+972-3-516-7620 Ms. Idit Azulay, Internet Goldidita@co.smile.net.il / Tel: +972 200-3848

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