Telecom Egypt announces final details of its IPO

This is expected to be the largest international equity offering out of the Middle East and North Africa region to date.


• The Offer was priced at LE 15.56 per ordinary share (US$ 13.50 per GDR) for institutional investors and LE 14.8 per ordinary share for retail investors in Egypt

• The total proceeds of the Offer are expected to amount to LE 5,132 million (US$ 891 million), including the employee offering and the over allotment option

• The underwriters have been granted an over allotment option for up to 41,920,000 shares (or 12.3% of the total offer size)

• The total number of Telecom Egypt shares sold by The Egyptian Government is 299,494,320 excluding the over-allotment option of 41,920,000

• The Offer represents 20% of Telecom Egypt's outstanding share capital, including the overallotment option

• One GDR is equal to 5 ordinary shares

• On the basis of the final Offer price of shares sold to institutional investors, Telecom Egypt's market capitalisation is expected to be approximately LE 26.6 billion (US$ 4.6 billion)

• 45% of the Offer was allocated to Egyptian retail investors and 5% to the Company to be
subsequently offered to its employees, and 50% to institutional investors in Egypt and internationally

• Shares commence trading on the Cairo and Alexandria Stock Exchange, and GDRs on the London Stock Exchange on Wednesday 14 December 2005

• Credit Suisse First Boston along with EFG Hermes were lead managers for the Offering of Telecom Egypt

Commenting on the success of the Initial Public Offering, Eng. Akil Beshir, Chairman of
Telecom Egypt, said:

'We are extremely happy with this transaction which represents a significant milestone for Egypt and for Telecom Egypt. We believe that the extent of interest and demand for shares in Egypt, across the Middle East, Europe and the United States reflects the level of confidence investors have in the company and its equity story. We would like to welcome all our new shareholders, and we look forward to continuing to implement our strategy and to develop our business'.