MTC reports net income KWD 136.4 million

"MTC is positioned to exceed the expectations of even its most ardent supporters in Kuwait indicating that dreams and visions formulated three years ago have materialized and are today the new foundation for the next phase of growth, development and expansion,"

said Asaad Al-Banwan, Chairman of MTC.

The company posted excellent results during this quarter and we expect to conclude the share rights offering; approved by the shareholders on August 22, 2005, next quarter raising over KD 675 million allowing the company to prepay the Celtel acquisition related debt thereby improving the bottom line while strengthening the balance sheet of MTC. Leveraging off the post-rights enhanced financial position, the company will be evaluating several attractive expansion opportunities arising over the next 18 months such as the expected third licenses in Saudi Arabia and Egypt," added Mr. Al-Banwan.

The MTC Group is serving a growing customer base of over 12.45 million active customers in the Middle East and Africa reflecting an increase of 17.4% and 339% over last quarter and same time last year respectively. The company's subsidiaries are consistently the leading operator in the overwhelming majority of the 18 countries where MTC manages networks.

MTC recorded consolidated revenues of KD 396.2 million (USD 1,355 million) for the nine months ended September 30, 2005, an increase of 67% over the same period in 2004. During the same period, the consolidated EBITDA improved by 77% to reach KD 235.9 million (USD 806.7 million) representing an EBITDA margin of 59.5%. MTC has announced consolidated net income of KD 136.4 million (USD 466.6 million), an increase of 52% compared to the same period last year, representing earnings of 251 Fils (USD 0.86) per share. This is an increase of 75 Fils compared to the EPS for same period in 2004.

"Be First, Be Daring and Be Different... This is the motto that has guided us from our beginnings from a small regional player to regional leader, and it will guide us from global player to global leader. You are as large as your dream and as able as the capabilities you build," said Dr. Saad Al-Barrak; Managing Director of MTC.

"You have two choices as a human being: to be a subject of history or a maker of history. MTC has chosen to belong to the second category. The results MTC has posted in the first 9 months of this year reflect solid growth stimulated by our expansion into Africa. Where others see obstacles, we see opportunities and this drives us to deliver best of class results to all stakeholders."

Select operational and financial highlights

Kuwait

MTC Vodafone Kuwait added 15 thousand customers during the third quarter of 2005 maintaining its dominant position as the leading mobile service provider in Kuwait with a 60% market share. For the 9 months ended September 30, 2005, MTC recorded revenues of KD 153.3 million (USD 524.2 million) with an EBITDA of KD 89.95 million (USD 307.6 million), translating into an EBITDA margin of 58.7%. The Kuwaiti operation's net profit for the quarter was KD 74.4 million (USD 254.3 million), a profit margin of 48.5%. MTC Vodafone Kuwait has remained the leading Kuwaiti mobile operator by offering innovative services and products tailored to meet the needs of the various market segments it serves. Deploying the latest technology, constantly monitoring and improving quality of service, and delivering on its commitments to being the best corporate citizen are also integral parts of MTC's success in its home market.

Jordan

Fastlink maintained its market leadership by adding 298 thousand customers during the past three months in the most competitive market in the Middle East. During the first 9 months of 2005 MTC's Jordanian operation recorded revenues of USD 346.5 million with an EBITDA of USD 175.8 million (an EBITDA margin of 50.8%). Net Income for the period was USD 99.2 million, a profit margin of 28.6%. The Jordanian wireless market has become the most competitive in the region with the commercial launch of a third GSM operator resulting in lively competition among a total of 4 operators. Fastlink has maintained its leadership in the market by offering the best value proposition to its customers.

Bahrain

MTC Vodafone Bahrain increased its customer base by 25 thousand during the third quarter of 2005, capturing an estimated market share of 22% in the Bahraini market. With the first country-wide 3G coverage in the Middle East, MTC Vodafone Bahrain continues to be a pioneer in offering the most advanced available technologies in the region. MTC Vodafone's financial performance is continually improving as it records increasingly higher revenues and EBITDA margins.

Iraq

MTC Atheer added 351 thousand customers in Q3 2005, an increase of 61% from the previous quarter to reach 925 thousand active customers. The company's commitment to the economic development of Iraq has been confirmed by its ambitious plans to have cumulative investment of approximately 430 million dollars and expecting to serve close to 1.5 million customers by year end. Already covering the southern and central regions of the country, including Baghdad, MTC Atheer is expanding its network to the north providing full country coverage. MTC Atheer has a 100% Iraqi workforce and it has been able to provide over 7000 direct and indirect job opportunities by working with Iraqi suppliers and distributors.

Lebanon

MTC Touch ended the third quarter of 2005 serving 501 thousand customers, an increase of 22 thousand from the previous quarter. Lebanon has been the scene of dramatic events and changes during the third quarter of 2005. MTC Touch management and all its employees are committed to delivering the best value proposition to their customers within the guidelines of the current management contract hoping to ultimately convert it to a longer term presence.

Africa - Celtel

Celtel builds and operates world-class communications networks that deliver reliable and competitive services in Africa, with operations in 13 African countries, under licenses that cover more than a third of the population of Africa. Celtel has invested more than $750 million in Africa, with the goal to build and operate world-class networks that will keep pace technologically with the rest of the world. Celtel currently manages 7.71 million customers in the following countries: Burkina Faso, Chad, Rep, Congo, Democratic Republic of Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Sudan, Tanzania, Uganda, and Zambia. During the third quarter of 2005 Celtel management successfully concluded negotiations in Tanzania to increase the companies equity stake and gain majority shareholding.