Israeli Cable Companies Receive Extension for Merger Approval by the Israeli Controller of Restrictive Business Practices

Israeli Cable Companies Receive Extension for Merger Approval by the Israeli Controller of Restrictive Business Practices

NETANYA, Israel, February 1/PRNewswire-FirstCall/ -- Matav-Cable Systems Media Ltd. (Nasdaq & TASE: MATV) announced today that
on January 30, 2005 the Israeli Controller of Restrictive Business Practices
has issued an amendment to its previous approval to the merger of the three
Israeli Cable Companies from April 2002, as amended from time to time.
According to the amendment, the Controller extended the validity of the
approval to the merger until the earlier of January 29, 2006 or the
consummation of the merger. As part of the amendment, the Controller revised
some of the conditions to the approval, including:



- allowing the merged entity to hold means of control in four additional
channels; and



- amending the schedule set for the investment of NIS 350 million
required by the merged entity as follows: not less than NIS 190 million until
June 30, 2005, not less than NIS 160 million until June 30, 2006 and any
other amount that shall be required for the fulfillment of the business plan
for the provision of telephony services, which fully compete with the
telephony services of Bezeq.



Matav also announced that on January 30, 2005 the Controller granted the
three Israeli Cable Companies an exemption from the requirement to receive an
approval of a restrictive arrangement in relation to the ongoing cooperation
between the Cable Companies. Pursuant to the exemption, the Cable Companies
may continue their cooperation in the multi-channel TV broadcasting
operations, including marketing, content acquisition and content production,
and in building infrastructure and providing fix line telecommunication
services including access to internet and telephony. The exemption is granted
for a period of one year, until January 30, 2006.



Important notice



This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements that are based on
various assumptions (some of which are beyond Matav's control) may be
identified by the use of forward-looking terminology, such as "may", "can
be", "will", "expects", "anticipates", "intends", "believes", "projects",
"potential", "are optimistic", "view" and similar words and phrases. Actual
results could differ materially from those set forth in forward-looking
statements due to a variety of factors, including but not limited to (1)
changes in technology and market requirements, (2) decline in demand for the
company's products, (3) inability to timely develop and introduce new
technologies, products and applications, (4) loss of market share and
pressure on pricing resulting from competition, (5) uncertainty as to the
completion of acquisition of new businesses or operations and integration
thereof with Matav's business, and (6) the other risk factors detailed in
Matav's most recent annual report and other filings with the US Securities
and Exchange Commission. Matav undertakes no obligation to publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.



Contacts:
Ori Gur Arieh, Counsel
Matav-Cable Systems Media Ltd.
Tel.: +972-9-860-2261

Ayelet Shiloni
Integrated Investor Relations
Tel.:+1-866-447-8633
Tel:+972-6883-336
ayelet@integratedir.com





Source: Matav - Cable Systems Media Ltd.

Ori Gur Arieh, Counsel, Matav-Cable Systems Media Ltd., Tel.: +972-9-860-2261. Ayelet Shiloni, Integrated Investor Relations, Tel.:+1-866-447-8633, Tel:+972-6883-336, ayelet@integratedir.com



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