Saudi Oger announces substantive agreement to sell a 35% stake in Oger Telecom to STC

The transaction remains subject to final agreement of legally binding documentation. Completion of the transaction will be subject to various approvals and certain other customary conditions precedent. Saudi Oger will maintain a controlling interest in Oger Telecom after the conclusion of this transaction.

Mohammed Hariri, Chairman of Oger Telecom and Senior Vice President of Saudi Oger, said: 'Saudi Oger has made great strides in its telecom activities since its initial investment in Cell C and subsequent acquisition of a controlling interest in Türk Telekom. This transaction represents a major step in the development of Oger Telecom and confirms the benefits of Saudi Oger's telecoms strategy. We welcome STC as a shareholder'.

Dr. Paul Doany, CEO of Oger Telecom, said: 'We are delighted to be able to announce this investment by STC in Oger Telecom'.

Oger Telecom is one of the largest telecom operators in the region with 2006 revenues reaching US$6.9 billion on a proforma basis and a subscriber base of around 35 million. Turkey and South Africa have the largest telecom sectors in the Middle East and Africa respectively, driven by their large and relatively wealthy populations.

The Turkish fixed-line market is the largest in the region with approximately 19 million access lines controlled by Türk Telekom. In addition, the Turkish market has witnessed rapid growth in broadband penetration with DSL adoption reaching over 4.5 million subscribers, up from 250,000 subscribers at the end of 2004.

The mobile markets in Turkey and South Africa have also been exhibiting significant growth over the past two years, reaching compounded annual growth levels in subscribers of 19% and 17%, respectively. Rapid growth is expected to continue in the medium term, driven by further penetration and increased innovation and competitive activity in the markets.

Oger Telecom also operates as an ISP providing dial-up, ADSL, leased line and VPN services in Saudi Arabia, Lebanon and Jordan through Cyberia.

Oger Telecom Limited is a company incorporated in the Dubai International Financial Centre

Citigroup Global Markets Limited is acting as exclusive financial advisor to Saudi Oger and Linklaters as legal advisors.