Bezeq Israeli Telecomunictn : - Immediate Supplementary Report - Letters from Entropy and Elliott Advisors on February 6, 2018

February 7, 2018

Immediate Supplementary Report

Letters from Entropy and Elliott on February 6, 2018

Further to the Company's Immediate Reports dated January 17, 2018, January 28, 2018 and January 30, 2018 concerning communications by Elliott Advisors (UK) Limited ("Elliott") and Entropy Corporate Governance Consultants Ltd ("Entropy") to Mr. David Granot, Acting Chairman of the Board of Directors, concerning the response to Elliott from the Acting Chairman of the Board, the Company reports that on February 6, 2018, a response was also provided to Entropy from the Acting Chairman of the Board, and that simultaneously with sending the response Mr. Granot received additional letters from Entropy (which noted that several institutional investors had contacted it, separately, which together hold 6.5% of the Company's share capital), and from Elliott.

In their letters these institutions expressed their opinion, among other matters, that the Company must act to change the composition of the board of directors, and the manner in which, in their opinion, it ought to act, as soon as possible.

The Acting Chairman of the Board is reviewing these communications.

It is clarified that in all matters related to additional correspondence with shareholders or those acting on their behalf in these matters, further reports will only be made if they involve material developments.

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.