Bezeq Israeli Telecomunictn : - Immediate Supplementary Report - Decision concerning management fees to Eurocom Communications Ltd

January 30, 2018

Immediate Supplementary Report

Decision Concerning Management Fees to Eurocom Communications Ltd

Further to the Company's Immediate Report dated September 26, 2017 concerning the decision of the Company's Board of Directors about the management agreement between the Company and its controlling shareholder, Eurocom Communications Ltd, dated May 25, 2016 ("Eurocom Communications", "the Management Agreement"), and following additional discussions on the subject at meetings of the Company's Board and its committees, a Supplementary Immediate Report is hereby provided that at the Board meeting held on January 29, 2018 it was decided as follows:

• 1. To rule that the Board's decision dated September 25, 2017 would also apply to November and December 2017, whereby the amount to which Eurocom Communications was entitled under the Management Agreement for management services relating to the Chairman of the Board from June 20, 2017 until the end of 2017 would be 50% of the amount stipulated in the Agreement for that period.

  The other elements of the Agreement (scope of consultancy services provided by Eurocom Communications and data on actual attendance at Board meetings in 2017 (not including Mr. Shaul Elovitch himself) would be calculated based on actual performance.

• 2. Due to the lack of clarity concerning Eurocom Communications' situation and the debt of Eurocom Communications to the Company, the payments deriving from the foregoing (NIS 680,000) will be held back at this stage while the Company reserves all its rights.

• 3. In respect of the period commencing January 1, 2018 - in light of the changes in circumstances in the recent period, the Company will commence a process to consider changes to the Management Agreement, and the parties will enter into negotiations in the near future. Therefore, payments according to the existing Management Agreement will be withheld until final decisions are taken concerning amendment / changes to the Agreement.

The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.

Bezeq The Israel Telecommunication Corporation Ltd.