To: foundation who wrote (27613 ) 10/9/2002 12:35:19 PM From: waitwatchwander Respond to of 197054 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.com [ Partner is currently a provider of GSM services. ]