Rosh Ha'ayin, Israel - March 7, 2001 - Partner Communications Company Ltd. (NASDAQ: PTNR) announces it received today a special license issued by the Ministry of Communications of the State of Israel, allowing it to provide Internet services with its own facilities by its own means.

The license is another step in Partner's preparation to supply 2.5 generation services, and to add packet switched capabilities to its circuit switched communication network. The license allows Partner to provide Internet access to both mobile and fixed network customers.

Upon launching the GPRS services later this year, Partner's customers will benefit from the "always on" feature of GPRS and from its faster rate of data transfer. Partner will be able to provide its customers advanced voice and data services, and full connectivity to the Internet and to organizational Intranet. The new Internet Service Provider license will enable Partner to best utilize its packet switched network and to expand its Value Added Services to both the private and the business sector. The orange^TM network customers will be able to easily access a wealth of information, knowledge, news and entertainment services, through a range of interfaces.

"The new license", said Amikam Cohen, Partner's CEO, "is a further step in creating value for our customers and shareholders, by facilitating the convergence of mobility and the Internet and making the crucial transition towards the third generation services. We congratulate the Ministry of Communications," added Mr. Cohen, "for adopting a policy which will accelerate our ability to provide customers with advanced services anytime, anywhere."

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 approximately 835,000 subscribers in Israel. Partner provides its subscribers with international roaming services. It has 199 operators in 79 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: www.investors.partner.co.il < http://www.investors.partner.co.il >)

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