Matav-Cable Systems Media Ltd: Execution of Restructuring Agreement Concerning Barak

Matav-Cable Systems Media Ltd: Execution of Restructuring Agreement Concerning Barak

NETANYA, Israel, July 26/PRNewswire-FirstCall/ -- Matav-Cable Systems Media Ltd. (Nasdaq: MATV & TASE: MATV) announced
today, that Barak I.T.C. (1995) - The International Telecommunications
Services Corp. Ltd. ("Barak") has published a press release, in which it
announced that Barak, Clal Industries and Investments Ltd. ("Clal"),
Clalcom Ltd. (a subsidiary (72%) of Clal) ("Clalcom") and most of the
holders of Senior Subordinated Discount Notes due 2007 of Barak, have entered
into a Restructuring Agreement concerning an implementation of the Plan under
section 350 of the Israeli Companies law, for the reconstruction of the
share capital and debt of Barak (the "Restructuring Agreement"). Clal
announced that Clal and Clalcom, together, have to invest in Barak a total
amount of US$26 million. Matav has to invest in Barak an amount of
approximately US$6 million. Immediately following the closing of the said
Restructuring Agreement Matav shall hold 18.5% of the issued share capital of
Barak.

The closing of the Restructuring Agreement is subject to
certain conditions precedent and therefore there is no assurance that the
Restructuring Agreement shall be consummated and closed, or, if it is
affected and closed, the timing and the terms on which it would occur.

This press release is for informational purposes only, and is
not an offer to buy or the solicitation of an offer to sell any securities of
the company.

About Matav:

Matav is one of Israel's three cable television providers,
serving roughly 25 percent of the population. Matav's current investments
include 1.2 percent of Partner Communications Ltd., a GSM mobile phone
company and 10 percent of Barak I.T.C. (1995) Ltd., one of the three
international telephony providers in Israel.

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:+972-506883-336
ayelet@integratedir.com.

Source: Matav - Cable Systems Media Ltd.

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:+972-506883-336, ayelet@integratedir.com

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