Partner Communications Announces Agreement with Ericsson
ROSH HA'AYIN, Israel--Partner Communications Company Ltd. ("Partner") (NASDAQ:PTNR) (LSE:PCCD) (TASE:PTNR) , a leading Israeli mobile communications operator, announces today that the Company has entered into an agreement (the "Agreement") with LM Ericsson Israel Ltd. ("Ericsson"), for the replacement of third party 3G equipment existing in Partner's network and the expansion thereof, and for the support and maintenance of the Ericsson elements in Partner's network. As a result, Ericsson shall become the sole vendor of Partner's 3G network.
The Agreement is expected to lead to higher operational and technological efficiency and to result in cost reduction.
The replacement process shall take place during a period ending on June 30, 2011 but may be completed earlier.
The transaction will result in depreciation acceleration of the replaced equipment, throughout the replacement period. The fixed assets value, net of depreciation of the replaced equipment as of September 30, 2007, is approximately USD 36 million. The main part of the depreciation is planned to take place during 2008.
In the event that the replacement and purchase of the new equipment is made in accordance with the provisions of the Agreement, the total net cash flow, after all discounts and price arrangements, some of which are contingent, payable by Partner throughout the replacement period, for the new equipment and for the support and maintenance services, is an amount of approximately USD 64 million.
About Partner Communications
Partner Communications Company Ltd. ("Partner") is a leading Israeli mobile communications operator providing GSM / GPRS / UMTS / HSDPA services and wire free applications under the orange(TM) brand. The Company provides quality service and a range of features to 2.796 million subscribers in Israel (as of September 30, 2007). Partner's ADSs are quoted on the NASDAQ Global Select Market(TM) and the London Stock Exchange. Its shares are also traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR; LSE: PCCD).
Partner is a subsidiary of Hutchison Telecommunications International Limited ("Hutchison Telecom"), a leading global provider of telecommunications services. Hutchison Telecom currently offers mobile and fixed line telecommunications services in Hong Kong, and operates mobile telecommunications services in Israel, Macau, Thailand, Sri Lanka, Ghana, Vietnam and Indonesia. It was the first provider of 3G mobile services in Hong Kong and Israel and operates brands including "Hutch", "3" and "orange". Hutchison Telecom, a subsidiary of Hutchison Whampoa Limited, is a listed company with American Depositary Shares quoted on the New York Stock Exchange under the ticker "HTX" and shares listed on the Stock Exchange of Hong Kong under the stock code "2332". For more information about Hutchison Telecom, see www.htil.com.
For more information about Partner, see www.orange.co.il/investor_site/.
Contacts
Partner Communications Company Ltd.
Mr. Emanuel Avner
Chief Financial Officer
Tel: +972-54-7814951
Fax: +972-54-7815961
E-mail: emanuel.avner@orange.co.il
or
Mr. Oded Degany
VP Corporate Development, Strategy and IRO
Tel: +972-54-7814151
Fax: +972-54-7814161
E-mail: oded.degany@orange.co.il
The Agreement is expected to lead to higher operational and technological efficiency and to result in cost reduction.
The replacement process shall take place during a period ending on June 30, 2011 but may be completed earlier.
The transaction will result in depreciation acceleration of the replaced equipment, throughout the replacement period. The fixed assets value, net of depreciation of the replaced equipment as of September 30, 2007, is approximately USD 36 million. The main part of the depreciation is planned to take place during 2008.
In the event that the replacement and purchase of the new equipment is made in accordance with the provisions of the Agreement, the total net cash flow, after all discounts and price arrangements, some of which are contingent, payable by Partner throughout the replacement period, for the new equipment and for the support and maintenance services, is an amount of approximately USD 64 million.
About Partner Communications
Partner Communications Company Ltd. ("Partner") is a leading Israeli mobile communications operator providing GSM / GPRS / UMTS / HSDPA services and wire free applications under the orange(TM) brand. The Company provides quality service and a range of features to 2.796 million subscribers in Israel (as of September 30, 2007). Partner's ADSs are quoted on the NASDAQ Global Select Market(TM) and the London Stock Exchange. Its shares are also traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR; LSE: PCCD).
Partner is a subsidiary of Hutchison Telecommunications International Limited ("Hutchison Telecom"), a leading global provider of telecommunications services. Hutchison Telecom currently offers mobile and fixed line telecommunications services in Hong Kong, and operates mobile telecommunications services in Israel, Macau, Thailand, Sri Lanka, Ghana, Vietnam and Indonesia. It was the first provider of 3G mobile services in Hong Kong and Israel and operates brands including "Hutch", "3" and "orange". Hutchison Telecom, a subsidiary of Hutchison Whampoa Limited, is a listed company with American Depositary Shares quoted on the New York Stock Exchange under the ticker "HTX" and shares listed on the Stock Exchange of Hong Kong under the stock code "2332". For more information about Hutchison Telecom, see www.htil.com.
For more information about Partner, see www.orange.co.il/investor_site/.
Contacts
Partner Communications Company Ltd.
Mr. Emanuel Avner
Chief Financial Officer
Tel: +972-54-7814951
Fax: +972-54-7815961
E-mail: emanuel.avner@orange.co.il
or
Mr. Oded Degany
VP Corporate Development, Strategy and IRO
Tel: +972-54-7814151
Fax: +972-54-7814161
E-mail: oded.degany@orange.co.il
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