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Partner Communications updates on
new regulations regarding incoming call tariffs

Rosh Ha'ayin, Israel - September 12, 2000 - Partner Communications Company Ltd. (NASDAQ: PTNR) announced today that it has been informed of new regulations of the Ministry of Communications which set a maximum uniform call termination tariff for all cellular networks in Israel.

The regulations set a gradually declining inland call termination tariff, which starts at NIS 0.54 (the rate presently charged by Partner) for the remainder of 2000, and declines to NIS 0.50 for 2001, NIS 0.46 for 2002, and NIS 0.42 from January 1, 2003.

The Ministry of Communications has set the call termination tariff for incoming international calls at NIS 0.25.

The new regulations will take effect on October 2, 2000.

The new regulations may have the effect of reducing a competitive advantage enjoyed by Partner's competitors by limiting the ability of other operators to subsidize outgoing calls for their customers through higher revenues generated from incoming calls and by reducing Partner's expenses on interconnect tariffs for calls originating on Partner's network and terminating on other cellular networks in Israel. However, over time, the regulations could significantly reduce Partner's call termination revenues.

Partner is examining the legal validity of the regulations and their economic implications, and may launch judicial challenge proceedings against the Ministry of Communications.

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 provides its subscribers with international roaming services with 177 operators in 73 countries. The Company's shares are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange under the symbol PCCD. (For further information:


Dan Eldar
VP Carrier, Investor and International Relations
Tel:  +972 3 905 4151
Fax: +972 3 905 4161