The "Deal of the Year" awards were launched in 2002 to honor the
public-sector issuers of the most innovative deals in the market each year.

Midwest -- Detroit Retirement Systems Funding Trust, $1.
Matav and Matav Haifa disagree with the tax orders.

treaties seaports

IBM and the Chief Scientist of the Israel
Ministry of Industry, Trade and Labor today announced a strategic
collaboration agreement which will help accelerate the adoption of open
standards based solutions in Israel, among others. For more information on
partnering with IBM, please visit: www.bondbuyer.

ehud treaties

All municipal bond transactions sold between October 1, 2004 and September
30, 2005 were eligible for this year's awards.

In light of the disagreement, the ITA
issued to Matav Haifa tax orders for the years 1998 through 2001, which are
based on previously issued tax assessments.

Branches of Government, Law, Military , Taxes).

comptroller knesset

IBM is a leading
supplier of technology and development support to Israeli start-up
companies , enabling them to more quickly develop and deploy On Demand
solutions based on IBM's open software and hardware technology. IBM is the largest technology company to establish a
formal relationship with the Ministry of Industry, Trade and Labor.

Projects implemented within this framework, and which meet the criteria set
by the Chief Scientist, will be eligible for financial support which will
fund part of the R&D costs of Israeli companies that cooperate with IBM.35 million of
Series 2004 new-money and refunding bonds.

Southeast -- Louisiana Transportation Authority LA 1 Project toll revenue
bonds, $94.

Midwest -- Three issuers for Ascension Health's $612.2 million of Series
2005A revenue bonds, including the Alabama Special Care
Facilities Financing Authority, the Indiana Health Facility
Financing Authority, and the Michigan State Hospital Finance
Authority.8 million of lease revenue refunding bonds,
Series 2005. With reporters based in
seven regional offices throughout the country, no other publication can
compete with its explanations and interpretations of the marketplace.

seaports eilat

The deals receiving honorable mention were:

Northeast -- Massachusetts School Building Authority dedicated sales tax
bonds, Series 2005A.

Southeast -- Newberry County, S. According to
management 's opinion, based on the evaluation of its external advisers, Matav
has well founded arguments against all the claims included in these tax
orders, and therefore Matav intends to appeal against these tax orders.

aviv regulates

Southwest -- Colorado Health Financing Authority for Poudre Valley Health
System Medical System of the Rockies' $215 million of Series
A, B, and C insured auction-rate securities, $70 million of
Series D JP Morgan proprietary bond program, and $30 million
of Series E subordinated proprietary bond program , and $55
million Series F uninsured fixed rate bonds.

electionworld knesset

Sale Helped Raise Money for Affordable Housing in San Jose

NEW YORK, The editors of The Bond Buyer,
SourceMedia 's daily newspaper of municipal finance, today awarded their 2005
"Deal of the Year" award to the San Jose Redevelopment Agency for the sale of
its $195.

aviv parliaments

, $303. Its flagship
publications, including American Banker, National Mortgage News, The Bond
Buyer, and Accounting Today, have helped build SourceMedia's reputation as the
pre-eminent information source in its respective markets.com

Includes government, law and military information for the state of Israel (e.

seaports parliaments

PRESS RELEASE IBM and the Israel Ministry of Industry Trade and Labor Join Forces to Accelerate Open Standards Adoption and Collaboration Between Israeli Star

Resnick, editor-in-chief of The Bond Buyer, who presented the Deal of the Year
award to David C.C's.

railways teller

-- Business Development: IBM will work with the ISVs to structure and
build their business partner network and relationships. Eli Opper the Chief Scientist of the Ministry
of Industry, Trade and Labor. Baum, Chief Financial Officer of the San Jose Redevelopment
Agency and Julia H. Cooper, Deputy Director of Finance for the City of San
Jose at a black-tie gala on Tuesday night. The deals being honored were
selected by the newspaper's editors and bureau chiefs from more than 60
nominees.
Judging criteria include the potential for the transaction to be used as a
model by other states and local governments around the nation, and the extent
to which the issuer used new financing techniques or credit structures.Y.44 billion of
taxable certificates of participation, Series 2005 A + B.'s $146 million of refunding recovery
bonds Series 2005A and the Orange County Public Financing
Authority 's $419.

railways aviv

San Jose's Redevelopment Agency's Bonds Named 'Deal of the Year'

(Nasdaq: MATV , TASE: MATV ) announced today that, further to the
previously reported non-concluded discussions and unwritten understandings
with the Israeli Tax Authorities (ITA), regarding a possible settlement with
respect of the tax orders and the assessments previously issued to Matav and
its subsidiary, Cable Systems Media Haifa- Hadera Ltd.

ombudsman parliaments

According to the agreement, IBM will grant Israeli start-up companies a
range of benefits including dedicated technical, marketing and sales
support, as well as business development and consultancy resources to help
them more easily become On Demand businesses -- allowing companies to
deploy, optimize and develop customized solutions based on IBM's open
technology . IBM also hosts workshops and technical seminars at
the Innovation Center that cover a wide range of topics to help ISVs keep
development skills and technology advancements up to date and integrated
into their solutions. "Israel is the second largest source of innovation outside
of the US , and IBM is committed to providing ISVs with the broadest range
of resources to help them grow and better serve joint customers.663 million, Series 2005 A + B, $66 million of
Series 2005 BANs, and $66 million TIFIA loan.

leumi eilat

IBM Global Technology Unit

The IBM Global Technology Unit (GTU) in Israel was founded three years ago
to help Israeli high-tech companies succeed, both locally and abroad.ibm.45 million of special source
refunding revenue bonds for the JF Hawkins Nursing
Home/Springfield Place, Series 2005.

seaports haifa

-- Sales and Marketing: IBM will dedicate staff to guide the ISVs through
the technology enablement process, provide them with marketing support
resources such as lead generation and advertising campaigns, and help link
them with the appropriate sales and go-to-market channels, both local and
international . "We are working
with IBM to help drive open technology adoption and development of
innovative , on demand business solutions that will help Israeli companies
grow and flourish," said Dr.

Southwest -- Central Texas Regional Mobility Authority, $167.com, provides market information,
including news, analysis, and insight to the financial services and related
industries such as accounting and technology, through its publications,
industry-standard data applications, seminars and conferences .

knesset aviv

The Bond Buyer is published by SourceMedia.

Contacts:

Shalom Bronstein
CFO
Matav-Cable Systems Media Ltd.

relevance israeli

Since its inception, the GTU has worked with over 700 Israeli
companies and has established formal relationships with more than 150
businesses. The company
offers a host of cross-industry and industry specific solutions designed to
meet the needs of companies of all sizes.

Far West -- Orange County, Calif.

About The Bond Buyer + Source Media
The Bond Buyer, http://www.
The aforementioned disagreement relates to tax orders and assessments for
the years 1997 through 2001 that the ITA issued to Matav and Matav Haifa.

olmert regulates

87 million of housing set-aside tax allocation bonds.
IMPORTANT NOTICE:
This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the U.:+1-866-447-8633
Tel:+972-50-6883-336
ayelet@integratedir.

treaties knesset

IBM will provide a wide range of technology, marketing and sales resources
to help ISVs enable their applications on IBM's open infrastructure and
accelerate time to market, including:

-- Technology Enablement: Access to the IBM Innovation Center in Petach-
Tikva, where technical consultants will provide ISVs with hands-on
assistance to develop, port, test and validate open solutions on IBM
hardware and software. Read by
underwriters, issuers, institutional investors, bond counsel, credit
enhancers, rating agencies and investors, The Bond Buyer provides complete
market coverage, concise commentary, a new-issue calendar, in-depth
statistical data and much more. NETANYA, Israel, Matav -Cable Systems
Media Ltd. Private Securities Litigation
Reform Act of 1995.

regulates comptroller

$11.

eilat olmert

"By teaming with IBM, we are providing innovative Israeli companies with
access to technology expertise and extensive sales and marketing resources
-- all of which are crucial to their success," said Ehud Olmert, Vice -Prime
Minister, Minister of Industry, Trade and Labor, Israel.com/isv.96 million of
senior-lien revenue bonds, Series 2005, and $66 million of
sub-lien revenue bond anticipation notes, Series 2005. ("Matav Haifa"), a
settlement with the ITA, at this time, is not available due to several
disagreements between the parties.

israel leumi

The agreement is part of the Ministry of Industry, Trade and Labor's
industrial R&D cooperation program, which aims to connect Israeli start-ups
with multinational companies to help them grow their business and increase
competitive advantage. IBM is a leading provider
of e-business solutions and is dedicated to helping companies , business
partners and developers leverage the potential of the Internet and network
computing across a wide range of businesses and industries.
"In working to be able to issue these tax-exempt bonds for housing, the
San Jose Redevelopment Agency set an example for other jurisdictions as to how
more affordable housing could be built in their communities," said Amy B.

The other regional finalists for the award were:

Northeast -- Nassau County, N.
SourceMedia , http://www.
Under these assessments and orders, Matav and Matav Haifa are required to pay
additional taxes in the aggregate amount of NIS 52 million (excluding
interest and inflation adjustments) and to decrease their carry-forward
losses for the years 2000 and 2001 by a total amount of NIS 96 million .S.

g.

relevance treaties

As part of the agreement, IBM and the Chief Scientist will jointly select
ISVs who are focused on developing innovative and on demand solutions based
on emerging technologies areas such as RFID, grid and autonomic computing
and Linux.

"Collaborating with the Israel Ministry of Industry, Trade and Labor will
help us drive open and innovative solution development among the Israeli
ISV community," said Buell Duncan, general manager, ISV & Developer
Relations, IBM.com, is the only daily newspaper
committed to serving the municipal bond industry.sourcemedia. Forward-looking statements that are based on various
assumptions (some of which are beyond Matav's control) may be identified by
the use of forward-looking terminology, such as "may", "can be", "will",
"expects ", "anticipates", "intends", "believes", "projects", "potential",
"are optimistic", "view" and similar words and phrases.

publicizes teller

As a result, Israeli business partners can go to market
faster, while reducing development costs. Actual results could
differ materially from those set forth in forward-looking statements due to a
variety of factors, including but not limited to (1) changes in technology
and market requirements, (2) decline in demand for the company's products,
(3) inability to timely develop and introduce new technologies, products and
applications, (4) loss of market share and pressure on pricing resulting from
competition, (5) uncertainty as to the completion of acquisition of new
businesses or operations and integration thereof with Matav's business, and
(6) the other risk factors detailed in Matav's most recent annual report and
other filings with the US Securities and Exchange Commission.
Tel.

inflation icl

"

About IBM

With 80 years of leadership in helping businesses innovate, IBM is the
world's largest information technology company., Health Care Corp. Matav
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

leumi icl

The
objective of the GTU is to develop and help establish a new generation of
ISV's who are going to market with open standards based solutions based on
IBM technology by providing them with technical support and sales
assistance.

Matav Receives Tax Orders From the Israeli Tax Authority Regarding Previous Tax Assessments

: +972-9-860-2221

Ayelet Shiloni
Integrated Investor Relations
Tel.