012 Smile.Communications Receives License to Provide Endpoint Network Services

PETACH TIKVA, Israel, January 22 012Smile.Communications (NASDAQ Global Market and TASE: SMLC), a growth-orientedprovider of communication services in Israel, today announced that Israel'sMinistry of Communications has granted it a five-year license to provideendpoint network services at its customers' premises. The license will allowthe Company to supply, install, operate and maintain all types of endpointnetwork equipment, including central switchboards, telephone cables,connection closets, etc. As such, the license will enable the Company toprovide compete, end-to-end communications solutions.

"We are excited to receive this strategic license, which rounds out therange of our services that we can offer our Enterprise customers," said Ms.Stella Hendler, President and CEO of 012 Smile.Communications. "Over the pastfew years, business integration services have accounted for a growing part ofour revenues, but were marketed separately from our telephony, Internetaccess and other services. Now, we will be able to offer a complete,end-to-end communications package, beginning with system planning andinstallation, all the way to the provision of sophisticated next-generationvoice and data services."

The endpoint network license will allow 012 Smile.Communications toexpand its on-site installation services beyond the deployment of cables fortelephony-over-VOB or PRI to include central controllers, switchboards(PBXs), connection closets and other endpoint equipment. Before receiving thelicense, the Company was able only to provide hosted PBX services(IP-Centrex/virtual PBX), and to facilitate the connection of the hostedlines to PBXs. This license will enable the Company to offer a fullend-to-end solution including both telephony infrastructure and advancedtelephony/Internet services.

About 012 Smile.Communications

012 Smile.Communications is a growth-oriented communication servicesprovider in Israel with a leading market position, offering a wide range ofbroadband and traditional voice services. Its broadband services includebroadband Internet access with a suite of value-added services, specializeddata services and server hosting, as well as new innovative services such aslocal telephony via voice over broadband and a WiFi network of hotspotsacross Israel. Traditional voice services include outgoing and incominginternational telephony, hubbing, roaming and signaling and calling cardservices. 012 Smile.Communications services residential and businesscustomers, as well as Israeli cellular operators and internationalcommunication services providers through its integrated multipurpose network,which allows it to provide services to almost all of the homes and businessesin Israel.

012 Smile is a 72.4 % owned subsidiary of Internet Gold Golden Lines Ltd.(NASDAQ: IGLD) one of Israel's leading communications groups with a majorpresence across all Internet-related sectors. In addition to 012 Smile, its100% owned Smile.Media subsidiary manages a growing portfolio of Internetportals and e-Commerce sites. Internet Gold and 012 Smile are part of theEurocom Communications Group. 012 Smile's shares trade on the NASDAQ GlobalMarket and on the Tel Aviv Stock Exchange.

For additional information about 012 Smile.Communications Ltd., pleasevisit the Company's investors' site at http://www.012.net.

Forward-Looking Statements

This press release contains forward-looking statements that are subjectto risks and uncertainties. Factors that could cause actual results to differmaterially from these forward-looking statements include, but are not limitedto, general business conditions in the industry, changes in the regulatoryand legal compliance environments, the failure to manage growth and otherrisks detailed from time to time in 012 Smile.Communications' filings withthe Securities Exchange Commission. These documents contain and i