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TWST: Can we begin with a quick historical sketch of Partner Communications (NasdaqNM:PTNR), bringing us up-to-date with exactly who the Company is today?

Dr. Eldar: Partner Communications Company Ltd. is the first Global System for Mobile Communications, or GSM, mobile telephone network operator in Israel. The Company commenced full commercial operations in January 1999 under the international orange™ brand name and, through its network, provides quality of service and a range of features to more than 1.7 million subscribers, or approximately 28% of the Israeli cellular market. Partner subscribers can use roaming services in more than 100 destinations using 240 GSM networks. Partner is considered one of the biggest success stories in the cellular world. We are now the fastest growing network in Israel. For the last two and a half years, we have taken the lion’s share of growth in the cellular market here in Israel and we believe we have been able to show some impressive achievements in profitability during this period of very rapid growth. Indeed, for the first time in the second quarter of 2002, we reported a net profit, which was much sooner than the consensus analyst estimates. Our subscribers are generating very high usage and we are able to maintain high levels of ARPU average revenues per user among the highest in the industry.

TWST: Can you say a word or two more on the 3G space in Israel?

Dr. Eldar: We believe that these services will be very successful in Israel for several reasons. We believe that we have a customer base here which has a very high technology literacy and acceptance of new products. As you may know, there is general conscription in Israel, which requires that every citizen serve a minimum of 2-3 years in the nation’s armed forces upon reaching the age of 18. Once they fulfill their duties, they leave the army with the knowledge and skill to use cellular technology, not only for voice services, but also for the more advanced services. Another factor in the success of 3G in Israel will be the age of the population. Here in Israel, we have a very young population (over 40% is under the age of 25) and the younger age group is indeed the future of mobile communications. We also will have a lower Capex than you will see in Europe both in terms of license payments -- about $50 million paid for a license -- and in terms of network roll out costs. Relatively speaking, Israel is a small country with a small number of major cities and major highways and therefore the roll out costs of the networks are lower than you would see in Europe. Finally, the strong relationship with Hutchison, the leader in 3G deployment, will provide us with another additional benefit through the combined purchasing power of the entire group. We believe that all these factors will contribute to the success of 3G in Israel and to the success of Partner as a leader in 3G in Israel.

TWST: How do you see the next couple of years unfolding at Partner Communications? Is it a case of continuing with the game plan or will there be any significant, foreseeable changes to the strategy?

Dr. Eldar: The major change is really the roll out of a 3G Network. We have become the dominant player in terms of growth in the 2G cellular market. We are now in the transition period from 2G into the packet switched world. We believe that the successful deployment of a 3G network here in Israel has the potential for significantly changing the playing field. Just as we have established ourselves as leaders in 2G, we intend to do the same in 3G.