MTC announces increase of its capital by 100% for future expansion projects

Mr. Asa'ad Al-Banwan, Chairman of MTC Group said: "We are recommending an increase of the capital of MTC to confirm our commitment to our expansion strategy in the Middle East and Africa." He went on to add: "This capital increase will enhance our ability to expand as well as assist us in refinancing the bridge loan that was secured for the recent Celtel acquisition."

Al-Banwan commented further that MTC Group may need another US$ 2 billion in the 2nd half of 2005 to fund not only the upcoming Iraq mobile license but also other target markets considered in MTC's expansion plans. Al-Banwan also stated: "MTC Group has proven itself during the past 3 years to be a leader in identifying and securing opportunities in markets across the region. MTC's Board carefully evaluates these opportunities with a focus and emphasis on enhancing and increasing shareholder value."

Dr. Saad Al-Barrak, MTC Deputy Chairman of the Board and Managing Director commented: "MTC's recent performance is a result of the implementation of MTC's 3X3X3 strategy emphasizing that the great success of this strategy can be seen today in the operating and financial performance of the MTC Group."

Dr. Al-Barrak added that MTC Group's expansion program had a direct impact on the market value of MTC shares, pointing out that the market capitalization of MTC increased by US$ 4 billion in the last 4 months. Dr. Al-Barrak confirmed that MTC Group's recent acquisition of Celtel last April elevated the expansion strategy to new heights and created excellent opportunities for MTC's expansion on the African Continent.

Africa today has the highest growth potential for mobile usage as the mobile penetration stands at less than 4% today. "Celtel contributed 23 Fils per share profits to MTC's bottom line since we acquired it in April of 2005. Moreover Celtel adds 200,000 to 300,000 customers per month to MTC Group's customer base and this impacts positively the overall growth level of MTC," explained Al-Barrak.

As of June 30, 2005 MTC customers increased by 306% to exceed 10.607 million customers when compared to 2.611 million during the same time last year.

Al-Barrak ended by stating that MTC intends to accelerate its expansion in the African markets in the near future making use of the Celtel's excellent reputation in those markets as well as its long experience serving the population of the African Continent.