Matav Reports the Filing of Two Lawsuits

Matav Reports the Filing of Two Lawsuits

NETANYA, Israel, May 25/PRNewswire-FirstCall/ -- Matav-Cable Systems Media Ltd. (NASDAQ & TASE: MATV) reported that it was
notified today that a purported class action lawsuit was filed against Matav
in the District Court of Nazerath. The lawsuit challenges the legitimacy of
the basic cable television subscription package offered by Matav to its
subscribers since the early 1990s, claiming that it violates the terms of
Matav's initial cable franchise. The lawsuit claims that the initial cable
franchise permitted the cable companies to offer only a basic subscription
package in the "tiering" system at a certain fixed price, and that the
Council for Cable and Satellite Broadcasting subsequently approved a more
expansive basic package (known as "Super Basic") for a higher fixed price.
The lawsuit also asserts, among other things, that the Council was not
authorized to approve this change and therefore this change is void. The
lawsuit claims damages on behalf of 300,000 of Matav's cable subscribers over
a 15-year period based on the difference in price between the initial package
and the expanded "Super Basic" package, for an aggregate amount of
approximately $1.07 billion, and request a court order requiring Matav to
offer a more basic subscription package at a lower price. Matav is in the
initial stage of reviewing and evaluating this lawsuit.

Matav also reported that it was notified today that a purported class
action lawsuit was filed in the District Court of Tel Aviv-Jaffa against "HOT
Cable Television Broadcasts" claiming damages incurred from last week's
telephone interconnect transmission failures described in Matav's press
release of May 18, 2006. Bezeq - Israel Communications Corporation Ltd. was
also named as a defendant in the lawsuit due to its role in the transmission
failure. Matav owns approximately 26.6% of HOT Telecom, a limited partnership
owned by Israel's three cable companies that provides telephony services to
subscribers. The lawsuit claims damages on behalf of all subscribers in the
aggregate amount of approximately $22 million. Matav is in the initial stage
of reviewing and evaluating this lawsuit.

About Matav:

Matav is one of Israel's three cable television providers, serving
roughly 25 percent of the Israeli cable subscriber market. Matav's current
investments include 1.2% of Partner Communications Ltd., a GSM mobile phone
company and 18.5% of Barak I.T.C. (1995) Ltd., one of the three international
telephony providers in Israel.

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, General Counsel
Matav-Cable Systems Media Ltd.
Tel.: +972-77-7077031

Ayelet Shiloni
Integrated Investor Relations
Tel.:+1-866-447-8633
Tel.:+972-52-6863-336
ayelet@integratedir.com

Source: Matav - Cable Systems Media Ltd

Ori Gur Arieh, General Counsel, Matav-Cable Systems Media Ltd., Tel.: +972-77-7077031, Ayelet Shiloni, Integrated Investor Relations, Tel.:+1-866-447-8633, Tel.:+972-52-6863-336, ayelet@integratedir.com

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Profile: International Entertainment