du announces AED 302 million revenue for second quarter of 2007

Financial highlights

The second quarter (April-June 2007) financial results showed net sales revenues growth of 184% to AED302.3m compared with the similar period last year (Quarter 2 2006: AED106.5m) bringing total revenues for the six months ending 30 June 2007 to AED485.5m (2006: AED200.9m). This increase in revenues reflects both the successful launch of the mobile services in February 2007 together with continued expansion of the fixed line business.

Net loss for the period reached to AED280.8m bringing total net loss for the year to AED496.7m.

Capital expenditure in the six months to 30 June 2007 was reported at AED 899m, predominantly reflecting the investments made in launching the mobile services. Net cashflow utilization for the six months, taking into account the continuing capital investment programme of the company, was AED963.2m.

'du has now firmly established itself as a telecom provider in the UAE. Our investment decisions, new initiatives, and customer confidence coupled with the favourable economic environment has contributed to increased revenues across our business in the second quarter of the year, as compared to the first,'

commented Ahmed Bin Byat, Chairman of Emirates Integrated Telecommunications Company, du.

Bin Byat continued: 'We achieved these results despite being a new entrant to a market with unprecedented penetration. We are moving forward with full force, and as promised, we are continuing our dedication to our customers, strategic partners and shareholders.'

Osman Sultan, the CEO of Emirates Integrated Telecommunications Company, du, said that the company was on track and ahead of projections.

'du's strategy of proactively launching new services and products resulted in signing up over 553,000 subscribers by 30 June 2007. This figure constitutes over 10 percent of the UAE population.

'We are continuing to focus on the roll out and optimization of our mobile network, in addition to the expansion of the network of du shops and dealers, providing consumers with easy and convenient access to our products and services. We are proud of the trust placed in us by our customers.' concluded Sultan.

In addition, du has been very active in the Corporate Social Responsibility field with initiatives including participating in Career Fairs, partnering with the TRA on mobile recycling as well as launching the Emirates National Culture Encyclopaedia in association with the UAE Ministry Of Culture to name a few.