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Tuesday, November 10 - 2009

Batelco to offer refund to customers affected by internet disruption

Batelco has announced that, in view of the recent undersea cable damage which caused inconvenience for internet users from Egypt, across the Middle East to India, and its customers in Bahrain, it will credit their customers' internet accounts with 50% of their monthly rental broadband charge. For example a customer on a BD10 per month package will receive BD5 credit.

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The unprecedented series of events which severely impacted internet services across many countries in the region, not just in Bahrain, was completely out of Batelco's control. Whilst Batelco is not obliged contractually to offer any reimbursement for such unforeseen incidents, the Company believes that such a unique occurrence, where 3 international cables were almost simultaneously damaged, requires a unique response.

"Even though no Batelco customer lost their internet access throughout this period, we are aware that they experienced slow downloads due to congestion. Our engineers started to re-route traffic within minutes of the cable cuts and our investments in network diversity served us well to restore significant connectivity on remaining operational cables and satellites," said Batelco Chief Executive Peter Kaliaropoulos.

"We understand that, whilst no fault of Batelco, our customers were severely inconvenienced. Consistent with our brand values and Customer Care principles, we are offering this once off payment recognising the unique circumstances,"


he stated.

"We are driving a customer focused transformation at Batelco and believe such a goodwill gesture will further differentiate us from other companies across the region and reflects our commitment to put our customers first. This also reinforces our leading reputation of being voted the Best Internet Service Provider in the Middle East and North Africa in 2007 by CommsMEA," Mr. Kaliaropoulos added.

The cable cuts lasted just over 12 days. Within a few days 65% of capacity was restored for Batelco's customers. Batelco's investments in 3 cable systems, satellite services and engineering planning provided ample redundancy and diversity and no customer lost complete internet connectivity throughout the 12 days.

"Should a new cable system be introduced in the Middle East, Batelco will explore investing in it. However, Batelco has 'best in class' superior and a more diverse infrastructure than any other operator in the Kingdom which serves as a robust and efficient national backbone to access the world-wide web."

Batelco estimated that the internet disruption will cost millions in customer refunds and lost revenue.

All consumer and business internet users will benefit from this initiative. The corresponding refund will be credited to accounts consistent with customers billing cycles from March onwards.
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Notes and media contacts

This release has been issued by Batelco's Corporate Affairs Department.

For further information, please contact:
Batelco Corporate Affairs General Manager Ahmed Al Janahi
Phone: +973 1788 4337

About Batelco
Bahrain Telecommunications Company (Batelco) is the leading integrated communications provider in the Kingdom of Bahrain and an emerging force among the regions key telecommunications players.

Batelco serves both the corporate and consumer markets in the most liberalised and competitive environment in the Middle East, and remains committed to delivering cutting-edge telecommunications to its customers in Bahrain and the MENA region. The Company's management and staff are driven by an enthusiasm for delivering the best customer experience based on innovation, affordability and reliability of products and services.

Batelco's specialised services cover the full spectrum of telecommunications solutions for residential and business customers and span a comprehensive range of mobile services, international roaming, high-speed Internet connections, satellite services, WiFi, MPLS IP-VPN network provisioning and management, Datacoms services over fixed, wireless and internet platforms, managed services, systems integration and enterprise solutions.

Batelco has invested $1.4bn in Bahrain's telecom infrastructure over the past 26 years, including significant investment in Next Generation Networks infrastructure which has reinforced the Kingdom's position as a leading communications hub. The Company's shares are listed on the Bahrain Stock Exchange with a total capitalization of approx $3.2bn as of February 2008.

With an ongoing strategy to grow overseas, the Batelco Group incorporates joint venture operations in Jordan, Kuwait, Yemen, Saudi Arabia and Egypt.

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