News Release

Immediate Report

Motion for Approval of Class Action

Tel Aviv, Israel – September 8, 2019 – Bezeq The Israel Telecommunication Corp., Ltd. (TASE: BEZQ), announced today that it received a motion for approval of a class action lawsuit at the Tel Aviv District Court.

The motion follows a decision dated September 4, 2019 of the Director-General of the Competition Authority regarding abuse of the Company's position (a decision about which the Company issued a report the following day).

The motion alleges that the actions and failures to act of the Company as described in the Competition Authority’s decision (blocking the competitors of the Company to access the Company's infrastructure through the building access section, as well as the refusal to lay down cables in a certain way and instead choosing to install cables in inferior, expensive and problematic ways without actual justification) caused consumer harm.

The definition of the group on whose behalf the class action will be filed is anyone who purchased fixed-line communications services in Israel, between July 2015 and March 2018, regardless of whether they purchased these communication services specifically from the Company. The total damage to the group is estimated by the applicant at NIS 400 million (based on personal damage of NIS 400 per group member multiplied by the amount of one million Israeli residents who were allegedly harmed by the alleged activity), which is the loss of the lower rates in the communication packages that members of the group could have enjoyed if not for the Company's alleged actions or failures.

The Company is studying the application and cannot assess its chances at this time.

The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only