Bezeq (yes) Reports First Quarter 2009 Results

TEL AVIV, Israel — Bezeq – The Israel Telecommunication Corp., Limited (TASE: BEZQ), Israel’s leading telecommunications provider, announced today its financial results for the first quarter 2009 period ended March 31, 2009.

yes: The multi-channel pay-TV segment posted record revenue of NIS 384 million, driven by a 2.0% year-over-year increase in subscribers to 560,000. ‘yes’ also made dramatic improvements in profitability during the first quarter of 2009, with operating profit of NIS 66 million. Excluding the impact of financing costs to shareholders, yes generated a net profit of NIS 40 million as compared to a net loss of NIS 14 million in the year ago period. First quarter EBITDA totaled NIS 122 million, up 33.9% year-over-year, reflecting an EBITDA margin of 31.9%. yes’ free cash flow increased to NIS 29 million in the first quarter as compared to NIS 5 million in the year ago period.

                           FY    FY    Q1    Q2    Q3    Q4    FY    Q1 
                         2006  2007  2008  2008  2008  2008  2008  2009
                         ----  ----  ----  ----  ----  ----  ----  ----
Subscribers (in 000's)    540   549   549   551   556   560   560   560
QoQ Change                           0.0%  0.4%  0.9%  0.7%        0.0%
YoY Change               3.6%  1.7%  1.3%  1.5%  2.0%  2.0%  2.0%  2.0%

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