Intel Capital announces new investment in Orascom Telecom WIMAX Limited

This deal underscores Intel Capital's continuing support for the deployment of low cost broadband internet access through WiMAX networks around the world. Orascom Telecom WiMAX Limited is also the first investment from the Intel Capital Middle East and Turkey fund announced in November of 2005.

The announcement was made as part of Intel Developer Forum activity at a joint press event held in Cairo, witnessed by HE Dr. Tarek Kamel, Minister of Communications and Information Technology of Egypt. 'Egypt is strongly supportive of collaborations between Egyptian and multinational companies that help create new global entities - allowing Egyptian talent to participate actively on the global scale,' said Minister Kamel. On a different note, the Minister confirmed that using such collaboration for the purpose of boosting the digital accessibility in Egypt is of direct benefit of the Egyptian society, in taking it to the next level of the information age.

'Intel Capital is a leader in promoting the deployment of low cost WiMAX based internet access' said Gordon Graylish, Vice President of Sales & Marketing and General Manager, EMEA.

'This latest agreement build on the foundation of existing Intel Capital investments to bring the benefits of low cost, high bandwidth internet access to consumers around the world and support the vision of the World Ahead Program launched earlier this month. We are pleased to announce this investment today at the Intel Developer Forum, with the support of the Egyptian Ministry of Communications and Information Technology.'

Commenting on the collaboration, Naguib Sawiris, CEO Orascom said, 'We are very excited about our new Intel venture. Expanding our services through WiMax is expected to help fulfill our strategy of offering services using the latest technologies. As a group, we are working relentlessly to explore new possibilities to enhance our portfolio of new services in terms of both innovation and cost effectiveness; what motivates us is not necessarily the technology itself, but rather the potential of what the technology can offer to enhance our customers' live and to boost our expansion plans. WiMAX will enable us to expand our broadband reach where fixed-line services cannot penetrate. It will open new opportunities in green field markets and enhance the current services in our existing markets.'

'I believe that this is a venture that forges powerful advantages to the benefit of customers in our region. With all the operator expertise and market know how of our group coupled with Intel, a world leader in technology innovation, we aim to bridge our markets and enhance the way people work and live with cost effective high speed access,' he added.

Graylish also highlighted that this deal was a key milestone in Intel Digital Transformation Initiative, a comprehensive, multi-year program set to expand Intel's economic, educational and technology-related support throughout the Middle East, Turkey and Africa. Through the Intel Digital Transformation Initiative, Intel is building on significant IT activities in the region and increasing investment in local entrepreneurship, education, digital accessibility and specialised technical competencies.

This deal is a collaboration between Intel Capital and established telecommunications companies which will bring significant experience of network deployment, marketing and operations to the newly formed joint ventures. Orascom TelecomWiMAX Limited will focus its efforts on working with governments and companies throughout the Middle East and parts of Asia to obtain suitable spectrum licenses for the deployment of WiMAX services. The new company will be majority owned by Orascom Telecom, with Intel Capital as the lead investor. Intel Capital will also provide access to the significant technical and marketing resources of Intel Corporation.

Over the past year, Intel Capital has announced investments in a number of WiMAX and wireless broadband service providers around the world including: PIPEX Wireless in the UK, DBD in Germany, Unwired Australia, Neovia in Brazil, and MVSNet in Mexico. Intel Capital has also been active in supporting WiMAX infrastructure through investments in Navini, a provider of WiMAX basestations and modems and Beceem, a provider of mobile WiMAX chipsets.

'Orascom Telecom WiMAX Limited is an exciting first step towards bringing the advantages and opportunity of internet connectivity to the people of the Middle East, and beyond, many of whom have never had such an opportunity before' said Naguib Sawiris, CEO and Chairman of Orascom . 'Together with Intel Capital, we will work closely with governments and companies in the Middle East and Asia to make this vision a reality.'