Wataniya Telecom Algerie closes USD490 million medium term financing

The financing proceeds are to be used to continue the construction and expansion of the GSM network across Algeria. The
$490 million equivalent medium-term financing, combined with the $421 million committed equity, completes the permanent capital structure of
Nedjma.

"This is another landmark transaction for the company", said Mr. Faisal Al Ayyar, Chairman of Wataniya Telecom. "It demonstrates Nedjma's commitment to setting new standards in the Algerian telecom market with competitive pricing, investing in developing a high quality network, and driving the development of the mobile media services market in Algeria," added Mr. Al Ayyar.

The multi-sourced financing package was structured and led by Citigroup and is to be repaid over 7 years. The finance plan incorporates a local Algerian Dinar (AD) facility of US$44.5 million equivalent; a local AD facility of €107 million equivalent covered by EKN of Sweden; a local AD facility of $22 million equivalent guaranteed by development finance institutions DEG of Germany, FMO of the Netherlands and Proparco of France; an international facility of US$110 million covered by Hermes of Germany; and international facilities of US$173.5 million provided by international and regional financial institutions and development finance institutions comprised of: Citigroup, ABC International PLC, HypoVereinsbank AG (HVB), Kreditanstalt für Wiederaufbau (KfW), EDC
of Canada, BNP Paribas, Arab Bank, Mashreq Bank, Société Générale, The Housing Bank for Trade and Finance, DEG, FMO, and Proparco.

Wataniya Telecom Algerie was awarded Algeria's third GSM license by the Telecom and Post Regulation Authority in December 2003 with a bid of US $421 million. It is licensed to operate a dual band (GSM 900 and GSM 1800) network for an initial 15 year period.

Nedjma, which launched its mobile network on August 25, 2004, already has over 700,000 subscribers. With the mobile market expanding rapidly in Algeria, Nedjma will cater to new subscribers by offering innovative services.

Wataniya Telecom Algerie is owned and operated by Wataniya Telecom. The other shareholders are Gulf Investment Corporation and United Gulf Bank.