Partner Communications Announces Agreement with Ericsson

Partner Communications Company Ltd. ("Partner") (NASDAQ:PTNR)
(LSE:PCCD) (TASE:PTNR) , a leading Israeli mobile communications
operator, announces today that the Company has entered into an
agreement (the "Agreement") with LM Ericsson Israel Ltd. ("Ericsson"),
for the replacement of third party 3G equipment existing in Partner´s
network and the expansion thereof, and for the support and maintenance
of the Ericsson elements in Partner´s network. As a result, Ericsson
shall become the sole vendor of Partner´s 3G network.

The Agreement is expected to lead to higher operational and
technological efficiency and to result in cost reduction.

The replacement process shall take place during a period ending on
June 30, 2011 but may be completed earlier.

The transaction will result in depreciation acceleration of the
replaced equipment, throughout the replacement period. The fixed
assets value, net of depreciation of the replaced equipment as of
September 30, 2007, is approximately USD 36 million. The main part of
the depreciation is planned to take place during 2008.

In the event that the replacement and purchase of the new
equipment is made in accordance with the provisions of the Agreement,
the total net cash flow, after all discounts and price arrangements,
some of which are contingent, payable by Partner throughout the
replacement period, for the new equipment and for the support and
maintenance services, is an amount of approximately USD 64 million.

About Partner Communications

Partner Communications Company Ltd. ("Partner") is a leading
Israeli mobile communications operator providing GSM / GPRS / UMTS /
HSDPA services and wire free applications under the orange(TM) brand.
The Company provides quality service and a range of features to 2.796
million subscribers in Israel (as of September 30, 2007). Partner´s
ADSs are quoted on the NASDAQ Global Select Market(TM) and the London
Stock Exchange. Its shares are also traded on the Tel Aviv Stock
Exchange (NASDAQ and TASE: PTNR; LSE: PCCD).

Partner is a subsidiary of Hutchison Telecommunications
International Limited ("Hutchison Telecom"), a leading global provider
of telecommunications services. Hutchison Telecom currently offers
mobile and fixed line telecommunications services in Hong Kong, and
operates mobile telecommunications services in Israel, Macau,
Thailand, Sri Lanka, Ghana, Vietnam and Indonesia. It was the first
provider of 3G mobile services in Hong Kong and Israel and operates
brands including "Hutch", "3" and "orange". Hutchison Telecom, a
subsidiary of Hutchison Whampoa Limited, is a listed company with
American Depositary Shares quoted on the New York Stock Exchange under
the ticker "HTX" and shares listed on the Stock Exchange of Hong Kong
under the stock code "2332". For more information about Hutchison
Telecom, see www.htil.com.

For more information about Partner, see
www.orange.co.il/investor_site/.