MTC Group bids for third GSM license in Egypt

Also revealing the official opening of the company's new office in Cairo, Dr. Saad Al Barrak, MTC Managing Director - Deputy Chairman, said:

"We look forward to having an opportunity to support Egypt's burgeoning telecommunications infrastructure and growing economy."

Pledging to broaden existing services as well as offering competitive products, Dr. Al Barrak added: "Our subsidiaries elsewhere are already the leading operator in most of the 19 countries where MTC manages networks."

Dr. Al Barrak was speaking at a press conference at Egypt's ICT Cairo Conference, where MTC is the Platinum sponsor.

Mohamed Eid, MTC Country Manager Egypt, said winning the license would provide direct employment for many Egyptian and paid tribute to the quality of the local labor force. He said much of MTC's current success - it has 14 million customers spanning the Gulf, Middle East and Africa.

"The Egyptian population is one of the most educated in the Arab world and we have employed a large number of Egyptian professionals in our various operations, whether in Kuwait, Bahrain, or elsewhere," said Eid. "If we enter Egypt as a mobile operator we will definitely be hiring local qualified telecom professionals in Egypt.

"Our core Human Resources policy is to hire as many locals as possible. We have implemented this policy in Iraq, where we have 100% Iraqi employees, as in Jordan and in Lebanon. In Bahrain 85% of our employees are Bahrainis. If we win the upcoming third GSM license in Egypt we will be implementing the same strategy and as such the vast majority of our employees will be Egyptian."

The fast-growing telecommunication market in Egypt is still relatively young in terms of its mobile penetration rate, which today stands at 16%. "We would be dedicated to growing this market further with the most innovative and technologically advanced services in the country that demonstrate the MTC motto of 'Be First, Be Daring and Be Different'." The MTC Group has already demonstrated its commitment to being "First" in the region, having successfully spearheaded 3G technology, such as in Bahrain.

In 2005 the Group acquired Celtel International for a total of $3.4 billion, which firmly placed MTC in Africa. Celtel has operations in 14 countries in sub-Saharan Africa. By winning the Egypt license, MTC would geographically bridge the Middle East and the African continent.

"The communications market in both the Middle East and Africa is one of the fastest developing markets in the world, especially since penetration rates are still far from those in Europe," said Mohamed Ibrahim, Chairman Celtel International. "We believe that mobile telecommunications is essential in developing the economies of these countries, while providing better means of communication for rural areas. By combining both our experience in Africa with that of MTC's experience in the Middle East, we are confident that we can provide a competitive service for Egypt."

For the nine months ending September 30, 2005 MTC posted Consolidated Revenues of KD 396.2 million (USD 1,355.1 million). Backed by such sound results, the company was able to raise more than KD 675 million (USD 2.32 billion) from a rights issue in an offering approved by the shareholders on August 22, 2005. The money allowing MTC Group to repay the Celtel acquisition related debt, thereby improving the bottom line while strengthening the company's balance sheet.