Wataniya Telecom posts KD 73.2 million net profit in 2006

"As Wataniya Telecom's operations mature, we continue fulfilling our promise to deliver year on year strong consolidated growth and improved profitability," said Mr. Faisal Al Ayyar, Chairman of Wataniya Telecom. "Our success in 2006, which gained recognition from regional as well as international industry and financial communities alike, remains driven by a solid strategy that takes us into high potential markets while differentiates us as the leaders in innovation in our existing ones. Our commitment is to remain focused, determined and committed to growing the value we offer across the entire region," ended Mr. Al Ayyar.

Wataniya Telecom Group Twelve Months Highlights:

• Total active customers increased to 9,992,461 versus 6,390,504 during the same period in 2005, an increase of 56%, and an increase of 13% from the last quarter.
• EBITDA grew KD 192.1 million (USD 661 million), an increase of 73%, compared to an
EBITDA of KD 111.2 million (USD 383 million) for the same period of 2005.
•Consolidated earnings per share are 162 fils for the year as of December 31, 2006.

Kuwait: Wataniya Telecom launched the first nationwide HSDPA network in the region. Wataniya Telecom's customer base increased to 1,068,679 active customers. Revenues were KD 48.2 million (USD 165.8 million) compared to KD 41.8 million (USD 143.8 million) in the same period of 2005. EBITDA for the 4th quarter of 2006 was KD 26.0 million (USD 89.4 million), or a 54% EBITDA margin, compared to KD 19.9 million (USD 68.5 million), a 48% margin for the 4th quarter of 2005. Net profit for the 4th quarter of 2006 was KD 18.8 million (USD 64.7 million), a decrease of 17% compared to KD 22.7 million (USD 78.1 million) for the 4th quarter of 2005 due to investment portfolio gain in the 4th quarter of 2005.

Tunisia: In September 2006, Fitch rated Tunisiana A on the local scale and a BB+ internationally. Tunisiana closed the year with 3,069,314 customers that translate to 46.5% market share where market penetration has reached 68%. 4th quarter Revenues were KD 18.0 million (USD 61.9 million), an increase of 46% from Q4 2005 or KD 12.3 million (USD 42.3 million). EBITDA was KD 12.2 million (USD 42.0 million), an increase of 144% compared to KD 5.0 million (USD 17.2 million), for Q4 2005.

Algeria: Nedjma more than doubled its subscriber base during 2006 to end the year with 2,991,024 subscribers as compared to 1,475,353 at the end of 2005. Revenues for the 4th quarter of 2006 were KD 23.0 million (USD 79.1 million) an increase of 83% compared to KD 12.6 million (USD 43.3 million) in the same period of 2005. The net attributable loss to Wataniya Telecom in Q4 is KD 2.8 million (USD 9.5 million) as compared to KD 4.5 million (USD 15.5 million) in Q4 2005.

Saudi Arabia: Bravo subscribers grew 600% compared to 2005 to reach 68,191 at the end of 2006 and has expanded its network to cover 70% of the Kingdom's populated area. The net attributable loss to Wataniya Telecom in Q4 is KD 1.2 million (USD 4.1 million). Bravo is accounted for on the equity method with Wataniya International owning 47%.

Maldives: By the end of 2006, Wataniya Telecom Maldives was preparing for the launch of the Islands' first fiber optic cable linking the nation island to the rest of the world and ending the country's monopoly and reliance on low quality, high cost international services. Total customers at the 4th Quarter end were 55,362. 4th quarter 2006 Revenues were KD 1.1 million (USD 3.8 million) compared to KD 0.8 million (USD 2.8 million) in the same period of 2005, an increase of 37%.The net attributable loss to Wataniya telecom in Q4 2006 is KD 1.0 million (USD 3.4 million) compared to KD 0.6 million (USD 2.1 million) in Q4 2005.