Matav Receives Tax Orders From the Israeli Tax Authority Regarding Previous Tax Assessments

Matav Receives Tax Orders From the Israeli Tax Authority Regarding Previous Tax Assessments

NETANYA, Israel, February 7/PRNewswire-FirstCall/ -- Matav-Cable Systems Media Ltd. (Nasdaq: MATV , TASE: MATV) announced
today that, further to the previously reported non-concluded discussions and
unwritten understandings with the Israeli Tax Authorities (ITA), regarding a
possible settlement with respect of the tax orders and the assessments
previously issued to Matav and its subsidiary, Cable Systems Media Haifa-
Hadera Ltd. ("Matav Haifa"), a settlement with the ITA, at this time, is not
available due to several disagreements between the parties. In light of the
disagreement, the ITA issued to Matav Haifa tax orders for the years 1998
through 2001, which are based on previously issued tax assessments.



The aforementioned disagreement relates to tax orders and
assessments for the years 1997 through 2001 that the ITA issued to Matav and
Matav Haifa. Under these assessments and orders, Matav and Matav Haifa are
required to pay additional taxes in the aggregate amount of NIS 52 million
(excluding interest and inflation adjustments) and to decrease their
carry-forward losses for the years 2000 and 2001 by a total amount of NIS 96
million.



Matav and Matav Haifa disagree with the tax orders. According
to management's opinion, based on the evaluation of its external advisers,
Matav has well founded arguments against all the claims included in these tax
orders, and therefore Matav intends to appeal against these tax orders.



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:

Shalom Bronstein
CFO
Matav-Cable Systems Media Ltd.
Tel.: +972-9-860-2221

Ayelet Shiloni
Integrated Investor Relations
Tel.:+1-866-447-8633
Tel:+972-50-6883-336
ayelet@integratedir.com



Source: Matav - Cable Systems Media Ltd.

Shalom Bronstein, CFO, Matav-Cable Systems Media Ltd., Tel.: +972-9-860-2221 or Ayelet Shiloni, Integrated Investor Relations, Tel.:+1-866-447-8633, Tel:+972-50-6883-336, ayelet@integratedir.com


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