Zain $4.5bn capital increase subscription period to open on August 17, close on September 18

Every Zain shareholder of record on 10 March 2008, the date the company held its ordinary and extraordinary General Assembly Meeting will be eligible to subscribe to a number of capital increase shares equal to 75% of the total number of shares they held on this date.

The subscription to the capital increase is set to open on August 17, 2008 and close on September 18, 2008. The subscription price will be 850 fils (approximately $3.20) per share i.e. a nominal value of 100 fils per share plus an issuance premium of 750 fils.

This capital increase was approved at the Company's extraordinary general assembly meeting on March 10, 2008 which ratified Zain's Board of Directors recommendation to increase the company's 'paid in capital' by 75%.

The anticipated capital increase is expected to result in proceeds of about $4.5bn, which will allow Zain to finance its future expansion plans as well as meet its financial commitments. Zain has set a target of being a top-ten global mobile operator by the year 2011.

Zain's impending capital increase will be carried out on the grounds of an Amiri Decree No. 143/2008 and a ministerial decision No. 397/2008.

The company recently released its half-year 2008 results indicating revenues of $3.488bn, an increase of 26% compared to H1-2007. The company's consolidated EBITDA increased by 20% for the same period to reach $1.305bn. Zain consolidated net profits reached $552m, an increase of 7% on H1-2007 profits. The company was serving 50.74 managed active customers on two continents as at 30 June 2008.