Matav-Cable Systems Media Ltd. Announces SecondQuarter and First Six Months 1999 Results.

NETANYA, Israel--(BUSINESS WIRE)--Aug. 18, 1999--

Revenues Increase 11% "Partner's" Revenues Virtually Double over

Prior Quarter, while Loss Narrows Substantially

Matav-Cable Systems Media Ltd. (NASDAQ: MATVY) today announced unaudited results for the second quarter

Revenues for the second quarter increased by 11.0% to New Israeli Shekels (NIS) 111.9 million (U.S. $27.5 million) (a) compared to NIS 100.8 million for the second quarter of 1998. Operating income was NIS 36.5 million (U.S. $9.0 million) compared to NIS 38.2 million for the same period a year ago. Net income before the Company's share in the losses of associated companies was NIS 19.9 million (U.S. $4.9 million) compared to NIS 23.1 million for the second quarter of 1998. Net income also includes a one-time charge of about NIS 4,524 recorded in "other expense," associated with the Company's planned purchase of an addressable analog system.

The reported loss, including the Company's share in the losses of associated companies, was NIS 12 million (U.S. $3.0 million) compared to a net profit of NIS 23.6 million for the same period last year. The Company's share of Partner's second quarter losses was approximately NIS 33.7 million. Net loss per ADS for the second quarter was NIS 0.70 (U.S. $0.16) versus income of NIS 1.74 last year (NIS 1.54 diluted).

Earnings before interest, taxes, depreciation and amortization (EBITDA), excluding "other expense," was NIS 57.1 million (U.S. $14.0 million) compared to NIS 58.8 million for the second quarter last year.

Revenues for the six months ended June 30, 1999 reached NIS 223.2 million (U.S. $54.8 million), an increase of 10.4% over the same period a year ago. Operating income was NIS 76.2 million (U.S. $18.7 million) compared to NIS 77.0 million for the same period last year. Net income before the Company's share in the losses of associated companies was NIS 46.2 million (U.S. $11.3 million) compared to NIS 46.8 million for the same period last year. Net income also reflects the one-time charge described above.

The reported loss, including the Company's share in the losses of associated companies for the six months ended June 30, 1999 was NIS 37.5 million ($9.2 million) compared to a net profit of NIS 47.3 million for the same period last year. Net loss per ADS for the first six months was NIS 2.54 (U.S. $0.62) versus income of NIS 3.48 last year (NIS 3.00 diluted).