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Partner reports operational results and delivers record
subscriber growth of 129,000 in the third quarter

Rosh Ha'ayin, Israel - October 18, 2000 - Partner Communications Company Ltd. (NASDAQ: PTNR) , today reported net growth totaling 129,000 subscribers for the third quarter. Partner ended the quarter with a customer base of approximately 633,000, up from 504,000 at the end of the second quarter. This is the highest quarterly subscriber growth recorded by the Company since its launch in January 1999. Of the total new subscribers 53,000 were pre-paid customers which joined Partner's "Big Talk" program, launched at the end of June 2000.

Partner's record subscriber growth this quarter has increased Partner's market share to an estimated 17 percent compared to 11 percent at September 30, 1999. The Company's churn rate remained low at 1.6 percent.

Average monthly usage for the quarter was 399 minutes, against 436 minutes per month for the comparable quarter last year. The usage level for the third quarter continued to be well above the market and the industry averages and was in line with the monthly level of 396 minutes recorded in the previous quarter. Average monthly revenue per subscriber, including in-roaming revenues, continued to remain strong at NIS 318 (US$ 79), against NIS 386 (US$ 96) for the third quarter of 1999.

The cost of acquiring new subscribers continued to decline sharply in this quarter. The average subscriber acquisition cost was NIS 698 (US$ 173), a significant decrease from NIS 1,401 (US$ 348) for the third quarter of 1999. This reduction was driven by sales of the new "orange to go" and prepaid packages, which offer customers significantly lower handset subsidies.

Network coverage increased from 96 percent of the Israeli population at the end of the third quarter of 1999 to 97 percent at September 30, 2000. The number of operational base stations grew from 734 macro sites and 18 micro sites at the end of the third quarter last year, to 952 macro sites and 223 micro sites at the end of the third quarter, 2000.

Partner's employment roster grew from 1,393 full-time equivalent employees at September 30, 1999 to 1,949 at September 30, 2000 reflecting the rapidly growing subscriber base, as well as the absorption of previously outsourced positions for handset repair services and customer service centers. The Company also established a new media and content division during the quarter.

Partner CEO, Amikam Cohen stated, "This quarter, Partner has delivered a very strong operational performance. In the second quarter, we launched significant marketing initiatives, repositioning our rate plans under "orange to go", and introducing our prepaid offering. The steps have driven a quarter of record subscriber growth.

"Furthermore, Partner's leading service offering continues to attract high usage customers, as reflected in this quarter's usage and ARPU results. Despite record growth, average MOU has remained steady and ARPU dilution has slowed. We have also continued to reduce our subscriber acquisition cost levels, confirming the financial benefits of our new packages." Mr. Cohen added.


Partner Communications will conduct a conference call at 17:00 Israel local time (11:00 EST) on Wednesday, October 18, 2000. The teleconference will be broadcast live over the Internet, and may be accessed through Partner's web site at Listeners should 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. For those not available to listen to the live broadcast, a replay will be available shortly after the call ends.

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 630,000 subscribers in Israel. Partner provides its subscribers with international roaming services. It has 183 operators in 75 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:

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 which could cause actual results to differ materially from such forward- looking statements, refer to the Company's recent filings with the U.S. Securities and Exchange Commission.

The convenience translation of the Adjusted New Israeli Shekel (NIS) figures into US Dollars was made at the rate of exchange prevailing at September 30, 2000: US $1.00 equals 4.024. The translations were made purely for the convenience of the reader.


Kevin Russell
Tel: +972-3-9054951
Fax: +972-3-9054161
E-mail: [email protected]

Dr. Dan Eldar
V.P. Carrier, Investor and International Relations
Tel: +972-3-9054151
Fax: +972-3-9054161
E-mail: [email protected]

(An Israeli Corporation)

(1) We have presented the amounts in nominal NIS. The equivalent adjusted NIS amounts are 386 as of September 30, 1999 and 316 as of September 30, 2000.

(2) We have presented the amounts in nominal NIS. The equivalent adjusted NIS amounts are 1,401 as of September 30, 1999, and 694 as of September 30, 2000.

Dr. Tucker currently holds non-executive directorships with Morse Holdings plc and TTP Communications Plc.