Etisalat Board recommends to distribute 35% dividends of nominal share value for H2 2008

The decision was taken during a board meeting held on the 23rd February, 2009 in Etisalat's head quarters in Abu Dhabi.

Etisalat has earlier distributed dividends at 25% for the first half of 2008, taking the total dividend for 2008 to 60%.

The Board also recommended to the General Assemble to issue a 10% bonus shares (one bonus share for every 10 shares).

Etisalat's Chairman and Board Members praised the group's outstanding performance for the year 2008, with net revenue of Dhs26.1bn and net profit of Dhs8.665bn, an increase of 22% and 19% respectively over 2007.

Mohammed Omran, Etisalat Chairman, said:

"Etisalat's financial results during the year 2008 met expectations. We achieved excellent results both financially and operationally in all of our markets. Etisalat now provides services in 17 markets across the Middle East, Africa and Asia. This supports our goal to become one of the ten largest operators in the world in the next two years."

He also remarked upon Etisalat's entry into the Indian market, which is considered one of the world's most attractive telecom markets in terms of growth and expansion. Etisalat is planning the launch of its services there in 2009. Through its investment in India Etisalat has carved a balanced portfolio of investments in West and South Asia, the Middle East and Africa.

Speaking about the overall international investments portfolio, Omran said: "We have developed our strategy over time - acquiring assets when it was appropriate and opportunities were available and changing our focus to maximizing the operational excellence when it was called for. We have also restructured the company in order to optimize our ability to manage operations in 17 countries across two continents. The new structure will help us to monitor and enhance performance across all of our operations inside and outside the UAE. The initial temporary structure started its operations at the beginning of 2009."

Mohammed Khalfan Al Qamzi, CEO, Etisalat, said: "Etisalat's consistently strong performance is a direct result of our extensive operational achievements. Etisalat is providing its customers with a wide variety of value added services. At the same time we are continuously working to protect our position as the leading telecom services provider in the region through a strategy balanced between financial achievements and quality services."

Speaking about the company's commitment to the society, Al Qamzi said: "Etisalat is committed to competing responsibly and to playing its full role in the society. One of our most recent initiatives will see Etisalat partner with the Ministry of Education to provide internet connectivity for UAE schools. We are very proud to support the development of the UAE and to support the education sector in particular."

In the year 2008, Etisalat has seen an outstanding operational performance that led to growth in all its business areas. The number of mobile users in the UAE has reached 7.3 million, a growth of 14% over 2007. Fixed line subscribers also witnessed a 3% increase over 2007, with the number now totaling 1.36 million. The Internet subscriber base reached 1.153 million by the end of 2008.