MTC Capital increase begins November 16, 2005

The capital increase will take place from November 16, 2005 until November 30, 2005.

Mr. Asaad Al-Banwan, Chairman of MTC stated, "The Board of Directors has finalized the preparations for calling in the capital through a rights issue after securing the Amiri Decree number 261 for 2005 and the Ministry of Commerce approval affirming the extraordinary general assembly decision to increase MTC's paid in capital by 100%."

Mr. Al-Banwan added, "The number of shares offered for subscription will be 543,013,460 new shares with a par value of 100 fils and a premium of KWD 1.150 and the expected proceeds will be KWD 54,301,346 par value and KWD 624,465,479 premium over par for a total exceeding 678 million Kuwaiti Dinars (approximately USD 2.32 billion)." Mr. Al-Banwan went on to add, "All registered shareholders of record on November 15, 2005 will be eligible to participate in the rights issue.

Mr. Al-Banwan emphasized that the MTC Board of Directors places as its priority the interests of the shareholders highlighting that MTC is the first Kuwait Stock Exchange listed company to have the ex-rights date as the day before the subscription and not the date of the extraordinary general assembly meeting. This action preserved the shareholders interests and allowed them more control over their investments until the date of the capital call. The Kuwait Stock Exchange will begin trading the MTC share on an ex-rights price basis on November 16, 2005 and MTC expects that shareholders will receive the new shares they subscribe to early December 2005.

"The proceeds of the capital increase will strengthen the financial position of the company while improving MTC's ability to expand. MTC borrowed USD 2.4 billion in April of this year to finance a portion of the Celtel acquisition and we will look at prepaying this loan. We will be able to secure better terms and conditions post capital increase when MTC has a need for additional expansion capital",

Mr. Al-Banwan concluded.

MTC is constantly evaluating new expansion opportunities that will help it meet its targets and goals. Increasing Shareholder value and enhancing all stakeholder rights are among the key driving influences for MTC's Board of Directors and executive management when establishing thresholds and evaluating expansion targets.