Release Details

Immediate Supplementary Report – Possible impairment in value of Bezeq International

November 8, 2020

Immediate Supplementary Report – Possible impairment in value of Bezeq International

Further to the Company's immediate report of October 30, 2020 regarding a possible impairment in the value of the subsidiary Bezeq International Ltd. ("Bezeq International"), and following preparations by Bezeq International to inform and deal with customers that have been paying the company under an agreement for ISP services but have not used those services for an extended period of time, an immediate supplementary report is submitted as follows:

The Company has been informed that Bezeq International received today an additional letter in the matter from the Ministry of Communications, asking that by the next reporting deadline (set for December 17, 2020) the data reported to the Ministry by the telecom operators reflect a substantial decrease in the number of subscribers with this issue, and be accompanied by an explanation on how the license holder is acting to prevent a recurrence of the problem. The Ministry's letter further informs, as in the letter of September 10, 2020, that in the event the problem is not substantially reduced, the Ministry will take various measures, including issuing binding directives in this regard.

Bezeq International is acting to curtail the problem, and plans to apprise its customers of the situation in accordance with that stated in the letters. The Company and Bezeq International are currently examining whether the aforementioned additional letter could influence the assessment of the potential write-down in the Company's books, as previously reported in this matter.


Bezeq – The Israel Telecommunication Corp. Ltd.

The above information constitutes a translation of theImmediate Reportpublished by the Company. The Hebrew version wassubmitted by the Company tothe relevant authorities pursuant to Israeli law, and represents the bindingversion and the only onehaving legal effect. This translation was preparedfor convenience purposes only.

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