Israel’s Largest Telecommunication Service Provider Reaps Benefits of Smartcool’s Energy Reduction Technology

Smartcool Systems Inc., report that the Company’s subsidiary, Smartcool Systems E.M.E.A. Ltd. has received a purchase order from their sub-distributor, Smartcool Systems (Israel) Ltd., regarding Bezeq The Israel Telecommunication Corp. Limited and the installation of the Energy Savings Module (ESM(TM)) in its facility in Tel Aviv. The order was received upon successful completion of an evaluation period where the ESM(TM) technology was installed onto the main chiller plant for the facility. The test showed energy savings (kWh) of 21% compared to existing power usage and reflects a 23 month payback for the installation of the equipment at current rates.

Smartcool E.M.E.A. and Smartcool (Israel) will now be working with Bezeq in order to formulate a roll-out plan to install Smartcool’s energy reduction technology throughout their other facilities.

“We are very pleased with the success that Smartcool E.M.E.A. has achieved with Bezeq,” states George Burnes, President and CEO of Smartcool Systems. “Israel generates its electricity from petroleum products and with the increase in commodity prices, commercial electricity rates have raised by 8.54% so far this year. Power costs are very significant in the telecommunication industry and air conditioning formulates a very large piece of those costs. Smartcool is working within this industry in other areas of Europe and North America and are experiencing similar levels of energy savings. We see the telecommunications industry as a major benefactor from our technology and Smartcool looks to see significant revenue growth from this sector.”

Established in 1984, Bezeq is Israel’s largest telecommunications service provider. The Company is leading Israel into the new era of communications based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of telecommunication services including domestic, international and cellular phone services; broadband Internet and other data communications services; multi-channel television; leased lines, and corporate networks.

The recently released first quarter report for the period ending March 31, 2008 indicates Bezeq Group revenues for the quarter to be New Israeli Shekels (NIS) 3,100 million (US$899,331,700 approx.) and pre-tax earnings of NIS1,093 million (US$317,086,951 approx.).

Bezeq’s shares are quoted on the Tel Aviv Stock Exchange under the symbol BEZQ. For more information please visit www.bezeq.co.il.