News Release

Bezeq Launches its Fiber Optic Network Project in Israel

Tel Aviv, Israel – September 15, 2020 – Bezeq – The Israel Telecommunication Corp., Ltd. (TASE: BEZQ), announces that initial customers will be connected to its fiber-optic network within just a few weeks after the Company's board of directors approved its entrance into the project last night. This step will have far-reaching consequences for the broadband Internet market in Israel, and for the Israeli economy as a whole. Bezeq already provides fiber optic connections to businesses, schools, medical institutions, etc. on a large-scale, and at every location in Israel, and this is now being expanded to private customers as well.

Bezeq Chairman, Gil Sharon, commented: "The launch of Bezeq's fiber infrastructure is a step of national importance. The extensive and rapid deployment of the country's largest fiber network will move Israel forward and contribute to the country's resilience and economy. This project will bring Bezeq and Israel to the technological front of the world's advanced communications networks. We congratulate the Minister of Communications, Yoaz Handel, who acted quickly and resolutely to advance the issue."

Bezeq CEO, Dudu Mizrahi, said today that, "Bezeq will soon be launching the Company's fiber optic project under which thousands of Israeli neighborhoods and locales will be connected to an advanced fiber optic network, enabling ultrafast broadband Internet, a boon for millions of Israelis throughout the country. Such a complex and resource-intensive project will be of huge benefit to the Israeli public and will contribute to narrowing the digital divide."

Mizrahi added: "We are setting out on an exciting path that will turn Israel into a world leader in telecommunications infrastructures. We will invest billions of shekels to build out the largest and most complex telecommunications infrastructure network, at the center of which is an advanced fiber optic network covering the country from Metula in the North to Eilat in the South, along Israel's borders and in the heart of the country".

In the coming days, the Company will begin to plan and execute deployment in several Israeli cities and will accelerate the pace of deployment in the course of 2021. The aim is to equip hundreds of thousands of households in Israel with access to Bezeq's fiber-optic service within the coming year.

Bezeq recently announced the upcoming launch of a new broadband Internet speed of 200 MB on the existing network, concurrently with connections to the fiber-optic network. Bezeq has the capacity to offer the broadband Internet speed to hundreds of thousands of customers countrywide within a short time. The new speed will be launched soon in many locales in the center of the country and in the periphery.

In addition to Bezeq's extensive infrastructure activities, the Company is focused on improving and upgrading the broadband experience within the home itself. In recent years, Bezeq has established its leadership as the top telecommunications service provider in Israel, with advanced broadband Internet equipment and unique network services in the customer home, which, together with the fiber optic infrastructure, will guarantee customers an excellent end-to-end broadband Internet experience.

About "Bezeq" – The Israel Telecommunication Corp.

Bezeq is Israel's leading telecommunications service provider. Established in 1984, the Company has led Israel into the new era of communications, based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of communications services including domestic, international and cellular phone services; broadband Internet, and other data communications; satellite and Internet based multi-channel TV; and corporate networks. For more information about Bezeq please visit the corporate website at www.bezeq.co.il.

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