B Communications : Report of Bezeq – Approval of early retirement of Fixed-Line Employees

Bezeq - The Israel Telecommunication Corp. Ltd.

("Company")

December 10, 2020

The Israel Securities Authority

The Tel Aviv Stock Exchange

Immediate Report - Approval of Early Retirement of Fixed-Line Employees

The Company hereby reports that on December 10, 2020, as part of the implementation of its efficiency program, the Board of Directors of the Company approved the early retirement of 50 permanent employees for early pension at a total cost of NIS 68 million. As a result, the Company is expected to record a provision of NIS 65 million in its financial reports for the fourth quarter of 2020.

The above is in addition to the retirement plan for employees transferred to the Company from the Ministry of Communications ("transferred employees") in accordance with a previous decision of the Board of Directors for which the Company already recognized the full commitment (see immediate report of the Company dated December 16, 2018). The remaining transferred employees are expected to retire from the Company by the end of 2021.

Sincerely,

Bezeq - The Israel Telecommunication Corp. Ltd.

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.