EARNINGS RELEASE

ROSH HA'AYIN, ISRAEL - August 17, 2000 - Partner Communications Company Ltd. (NASDAQ: PTNR) today announced unaudited results for the second quarter and six months ended June 30, 2000.

Financial Highlights - Revenues for the second quarter totaled New Israeli Shekels (NIS) 479.4 million (US $117.4 million) compared to NIS 183.2 million (US $44.9 million) for the same period last year.

Operating loss of the Company for the quarter was NIS 141.4 million (US $34.6 million), compared to NIS 122.3 million (US $30.0 million) for the same period a year ago. The net loss for the quarter was NIS 180.2 million (US $44.1 million), or NIS 0.98 (US $0.24) net loss per American Depositary Share, against a net loss of NIS 169.5 million (US $41.5 million) or NIS 1.17 (US $0.29) net loss per American Depository Share for the second quarter of 1999.

Gross loss for the quarter was NIS 34.6 million (US $8.5 million) compared to a gross loss of NIS 63.6 million (US $15.6 million) for the same quarter last year.

Negative EBITDA for the quarter was NIS 27.9 million (US$ 6.8 million) compared to negative EBITDA of NIS 179.4 million (US $ 43.9 million) for the same quarter last year.

Net loss for the six months ended June 30, 2000 was NIS 313.5 million (US$ 76.8 million) compared to a net loss of NIS 426.8 million (US$ 104.5 million) for the same period last year.

The company's unaudited results are presented under Israeli GAAP. Under US GAAP the net loss for the quarter was NIS 180.1 million (US$ 44.1 million), or NIS 1.01 (US$ 0.25) net loss per American Depositary Share, against a net loss of NIS 309.8 million (US$ 75.9 million) or NIS 2.21 (US$ 0.54) net loss per American Depositary Share for the second quarter of 1999.

Net loss under US GAAP for the six months ended June 30, 2000 was NIS 382.5 million (US$ 93.7 million) compared to a net loss of NIS 734.4 million (US$ 179.8 million) for the same period last year.

Operating Results - Partner's subscriber base at the end of the second quarter comprised of approximately 504,000 compared to approximately 178,000 subscribers at the end of the second quarter of last year. Net additions for the quarter totaled approximately 78,000 with 26 percent comprising of business customers.

Partner's market share (on a subscriber basis) increased to an estimated 15 percent, with only a marginal rise in churn rate from 1.5 percent in the second quarter of 1999 to 1.6 percent for the second quarter of this year.

Average monthly usage for the quarter was 396 minutes per subscriber, an expected decline from 454 minutes per subscriber during the second quarter of 1999. The average monthly revenue per subscriber, including in-roaming revenues, was NIS 325 (US$ 79.6) for the second quarter of 2000 compared to NIS 404 (US$ 98.9) per subscriber for the same quarter of 1999. The cost of acquiring new subscribers for the quarter was reduced significantly to NIS 1,026 (US$ 251.2) per subscriber against NIS 1,512 (US$ 370.2) per subscriber in the second quarter of 1999.

Financing ?On July 11, Partner signed an amended credit facility with a group of Israeli banks, with Bank Leumi Le-Israel B.M. serving as facility agent. The amended facility is in an aggregate amount of $750 million (up from $650 million) and is divided into two tranches: a multicurrency term loan facility of $600 million (which may be reduced to $550 million under certain circumstances) and a revolving multicurrency loan facility of $150 million.

On August 10, 2000, the Company completed an offering of $175 million of unrestricted Senior Subordinated Notes. The notes bear a coupon of 13% and mature on August 15, 2010. The proceeds from the offering will be used mainly to repay a portion of the outstanding indebtedness under the Company's credit facility. Funds will be drawn as needed under the company's credit facility to finance the continued development of its business, including operating and capital expenditures, to invest in wireless applications development through Partner Future Communications and in appropriate strategic opportunities.

Quarterly developments ?In mid-May Partner performed a significant repositioning of its tariffs in the marketplace through the launch of "orange to go fix". This new package enables subscribers purchasing a handset, to access lower tariffs without commitments to monthly payment or usage levels. This launch was supported by the introduction of a wide range of Hebrew-enabled handsets from leading manufacturers.

At the end of June, the Company further widened its product offering to include an attractive Pre Paid package, addressing a significant and fast growing segment in the Israeli cellular market. This new package ensures that the Company is now positioned to gain market share in all major market segments.

In other recent developments, Partner announced the launch of a variety of innovative services and applications including the first cellular portal in Israel, the launch of WAP services for the first time in Israel, and the launch of the first personal mobile banking service in Israel, with Bank Leumi.

Commenting on the quarter, Amikam Cohen, CEO of Partner said, " In Q2 Partner has succeeded in completing a significant repositioning of its tariffs in the Israeli cellular market, introducing an exciting new range of Hebrew enabled handsets, and launching an advanced Pre Paid package. We have invested significantly in marketing and promoting these new developments and anticipate that they will further strengthen and support subscriber growth in the third and forth quarters of this year."

Kevin Russell, Partner's CFO, stated that the results show another quarter of solid revenue growth for the Company, continuing to progress towards positive EBITDA. He further stated that the recent successful completion of the Company's amended credit facility and bond offering, significantly strengthen the Company's financial position to meet anticipated subscriber growth demands.

Mr. Russell further noted that the Company's net loss under Israeli GAAP for the quarter, had been impacted by the accounting treatment of subscriber acquisition costs on the "orange to go" program. Subscriber acquisition costs on this program have been fully expensed during the quarter. In the comparable quarter last year, subscriber acquisition costs were fully capitalized for amortization over the contract lives of the subscribers acquired.

Partner will conduct a conference call for investment professionals on August 17, 2000 at 17:00 PM Israel Local Time (10:00 AM EST). This conference will be broadcast live over the Internet and can be accessed by all interested parties through Partner's investors web site at www.investors.partner.co.il. To listen to the live broadcast, please go to the web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software.

Notes: The statements contained in this release which are not historical facts are forward-looking statements with respect to plans, projections or future performance of the Company, the occurrence of which involves certain risks and uncertainties. For a discussion of important factors that could cause actual results to differ materially from such forward-looking statements, refer to Partner's Registration Statement on Partner's latest filings with the U.S. Securities and Exchange Commission.

The financial statements set forth below should be read in conjunction with the quarterly financial statements of Partner Communications for the second quarter ended June 30, 2000 and notes thereto that have been filed concurrently to the U.S. Securities and Exchange Commission on form 6-K.

The convenience translation of the Adjusted New Israeli Shekel (NIS) figures into US Dollars was made at the rate of exchange prevailing at June 30, 2000: US $1.00 equals 4.084. The translations were made purely for the convenience of the reader.

Earnings before interest, taxes, depreciation, amortization, exceptional items and capitalization of intangible assets ("EBITDA") is presented because it is a measure commonly used in the telecommunications industry and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income or income for the year as an indicator of the operating performance of the Company. Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results.

Partner Communications Company Ltd. is the only Global System for Mobile Communications, or GSM, mobile telephone network operator in Israel. The Company commenced full commercial operations in January 1999 under the international Orange Brand name and, through its network, provides quality of service and a range of features to over half a million subscribers in Israel. Partner subscribers can use roaming services in 73 countries using 173 GSM networks. The Company shares are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange under the symbol PCCD. (For further information www.investors.partner.co.il)

Contacts:

Kevin Russell, CFO
Tel:     +972-3-9054951
Fax:     +972-3-9054161
E-mail: kevin.russell@orange.co.il

Dr. Dan Eldar,
V.P. Carrier, International and Investor Relations
Tel:     +972-3-9054151
Fax:     +972-3-9054161
E-mail: dan.eldar@orange.co.il