CELLCOM ISRAEL ANNOUNCES TEMPORARY ORDER TO STAY PROCEDDINGS AGAINST XFONE TO FORMULATE A DEBT ARRANGMENT (Form 6-K)

CELLCOM ISRAEL ANNOUNCES TEMPORARY ORDER TO

STAY PROCEDDINGS AGAINST XFONE TO FORMULATE A

DEBT ARRANGMENT

Netanya, Israel - June 21, 2021 - Cellcom Israel Ltd. (TASE: CEL) (hereinafter: the 'Company') announced today that following its previous reports regarding the dispute and legal proceedings against Marathon (018) Xfone Ltd., or Xfone and its controlling shareholders, and Xfone's unilateral motion to stay proceedings against it in order to formulate a debt arrangement, on June 17, 2021, an interim stay of proceedings order (until further decision) was granted against Xfone, including the legal proceedings taken by the Company against Xfone and annulment of temporary liens imposed by the Company regarding Xfone's assets inclusive of Xfone's assets held by Xfone 018 Ltd. (Xfone parent company). An arrangement manager was also appointed in accordance with the Israeli Commissioner of Insolvency's recommendation. A hearing on Xfone's motion for a stay of proceedings against it, including its motion for approval of an agreement to sell its activity to Widely Mobile Ltd., or Widely, will be held on June 30, 2021. In this regard, it should be noted that the Israeli Commissioner of Insolvency informed the court that it does not object to the temporary stay of proceedings until the hearing and that the requested approval for the sale of Xfone to Widely is premature and it will be possible to consider selling Xfone's activity to Widely in the future, subject to and after approval of the creditors' meetings to the debt arrangement, which may include such sale.

As stated in a previous report, the Company intends to file an objection to the approval of the motion in its current form and conditions and at this early stage it is unable to estimate its chances of success.

For additional details see our 2020 annual report on Form 20-F, dated April 28, 2021, under Item 4. Information on the Company - B. Business overview - Networks and Infrastructure - Network sharing agreement' and our quarterly report for the first quarter of 2021 on Form 6-K, dated May 20, 2021, under chapter A section 6 and our current report on Form 6-K, dated June 17, 2021.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its cellular subscribers with a broad range of services including cellular telephony, roaming services, text and multimedia messaging, advanced cellular and data services and other value-added services in the areas of mobile office, data protection etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates advanced networks enabling high-speed broadband and advanced multimedia services. Cellcom Israel offers nationwide customer service including telephone customer service, retail stores, and service and sale centers. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone services in Israel.

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