Matav Examines Potential Debt Financing

Matav Examines Potential Debt Financing

NETANYA, Israel, July 20/PRNewswire-FirstCall/ -- Matav-Cable Systems Media Ltd. (Nasdaq: MATV & TASE: MATV)
announced today, further to press reports published in Israel, that it has
approached several investment banks in order to preliminary explore the
possibility of Matav, with the other two Israeli cable operators, jointly
raising up to $800 million, through debt financing from Israeli and foreign
investors. The primary purpose of this potential debt financing will be to
partially refinance the outstanding debt of the three cable operators.

There is no assurance that such financing will be pursued or,
if it is pursued, 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.

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: +972-6-883-336, ayelet@integratedir.com.

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