Immediate notice is hereby given as follows:
Notice was received today at the Company's offices, from the
subsidiary Bezeq International Ltd. ("Bezeq International"), that on
the 30th of January 2001, Bezeq International signed a memorandum of
understanding with TyCom Networks Ltd. ("TyCom"), a leading
international supplier of communications systems and services,
including capacity and undersea optical fibers.
The agreement creates a joint venture for laying and operating an
undersea system of optical fibers in the eastern Mediterranean basin,
as part of the TyCom Global Network ("TGN"), at a total cost of about
390 million dollars. The investment of Bezeq International in the
project will be about 20%, and TyCom will own the other 80%. Bezeq
International has an option to increase its share, on certain terms,
to 33% of the joint venture.
The system, as part of the TGN, creates direct, continuous and
uniform undersea routing between New York, Europe and Tel Aviv. It is
designed to link Italy, Greece, Turkey, Cyprus and Israel, and
possibly other countries in the Mediterranean basin in the second half
Under the memorandum of understanding, the parties are supposed to
act for the signing of a detailed agreement for obtaining approvals,
to the extent required by any law.