MTC Atheer successful in Iraq mobile license auction

The successful bid of USD$1.25 billion secures a 15 year nationwide license, effective from the date of license signing expected on 30 August 2007.

The payment to the Government of Iraq is phased over three instalments.

Commenting on the transaction, Dr. Saad Al Barrak, Chief Executive Officer of MTC Group of Companies, www.mtctelecom.com , stated:

'We are delighted to have secured a 15 year license in Iraq, continuing the commitment we made to the people of Iraq when we started operations in December 2003. Now with such clarity, the license awarded will allow us to more effectively utilize our synergies across the Group continuing to expand and invest in the network to better serve our customers offering much needed mobile services to more communities across Iraq. Securing the license underscores MTC's leading position in the Middle East, in line with our aspirations of becoming a top-ten global mobile operator by 2011.'

As the market leader in Iraq with a 40% market share and over 3.6 million active customers (June 30, 2007) of which 97% are prepaid, MTC Atheer's GPRS mobile network offers the most advanced mobile services in Iraq. It has the widest reaching mobile telecommunications network in the country spanning over 6,000 kms, the company having invested over $600 million to date.

Ali Al Dahwi, general manager of MTC Atheer said 'We are very appreciative of the professionalism demonstrated by the Iraqi authorities, the CMC and its advisors in the auction process. The outcome of this process affirms and is testimony of MTC-Atheer's market leadership, commitment and long-term dedication to the future of Iraq. Importantly it facilitates our expansion plans to grow nationwide inclusive of the northern part of Iraq.'

One of MTC Atheer's stated objectives is to support the local community, offering employment and creating business opportunities. Today, MTC Atheer employs over 1500 Iraqis with training and personal development are at the forefront of its recruitment and HR policies. It sponsors and supports various cultural organizations such as the Olympic National Football Team and the Iraqi National Orchestra as well being very active in supporting NGOs and health organisations.

Key highlights

• Iraq is a key regional market
- Iraq is the 6th largest economy in the Middle East with a population of 27 million
- The long term license confirms MTC-Atheer's market leadership in Iraq and solidifies MTC's position as the 4th largest mobile operator worldwide by geographical coverage footprint inclusive of Africa and in the Middle East, where it has a presence in Kuwait, Jordan, Bahrain, Lebanon, Sudan and soon Saudi Arabia.

• Iraq is a fast growing and attractive market
- low mobile penetration of approximately 32% with low fixed line penetration of 2%
- young and fast growing population
- relatively attractive blended market ARPUs of US$14.5 that is expected to grow

• Synergies that will ensure MTC-Atheer's continued success
- The MTC Group spans 21 countries, MTC Atheer will continue to benefit from Group synergies in branding, human resources, procurement and best business practices. MTC has operations in five neighbouring countries, namely Kuwait, Jordan, Bahrain, Lebanon and soon Saudi Arabia.

• UBS Investment Bank acted as MTC Atheer's sole advisor in the auction process