Telecom Egypt S Regulatory News (TEEG)

6 May 2008 13:14

Telecom Egypt S.A.E06 May 2008 Telecom Egypt and 15 Other Telecommunications Companies Sign Agreement to Build High Bandwidth Undersea Cable System from UK to India Cairo, 6th May 2008: Major leaders of the global telecommunications industrytoday signed a formal Construction and Maintenance Agreement (C&MA) to build thefirst direct, high-bandwidth optical-fiber submarine cable system from theUnited Kingdom to India. The Europe India Gateway (EIG) cable system, whichwill cost close to US$700 million, will significantly enhance capacity anddiversity between the countries of these regions. 16 telecommunications companies are investing in the project: AT&T; BhartiAirtel; BT; C&W; Djibouti Telecom; Du; Gibtelecom; IAM; Libyan Post, Telecom andInformation Technology Company; MTN Group Ltd; Omantel; PT Comunicacoes, S.A.;Saudi Telecom Company; Telecom Egypt; Telkom SA Ltd; and Verizon Business. The EIG cable system, targeted to be operational in second quarter of 2010, is a15,000 kilometer (9,000 mile) system that will connect 13 countries and threecontinents. Landings are planned in the United Kingdom, Portugal, Gibraltar,Morocco, Monaco, France, Libya, Egypt, Saudi Arabia, Djibouti, Oman, United ArabEmirates, and India. In addition to serving these regions, the EIG cable systemwill also provide seamless interconnection with other major cable systemsconnecting Europe, Africa, Asia and North America. The system will utilizestate-of-art next generation technology that is designed to provide up to 3.84terabits (Tbps) using dense-wavelength-division-multiplexing (DWDM) to provideupgradeable transmission facilities that support Internet, e-commerce, video,data and voice. In addition to complementing existing high bandwidth cable systems in theregion, the EIG cable system will provide much needed diversity for broadbandtraffic currently relying largely on traditional routes from Europe to India.This is important considering the threat of earthquakes in this region. The EIGcable system, with its large bandwidth and high quality transmission technology,will help meet the present and future growth in telecommunications trafficbetween the targeted regions. In addition to the C&MA signing, the EIG Consortium also signed a supplycontract with Alcatel-Lucent and Tyco Telecommunications for the cable system'sconstruction. For further information: Ahmed Fathallah Alia A. AlloubaDirector of Investment, Financial Planning & IR Investor Relations ManagerTel: +2 02 31316699 Tel: +2 02 31315217Fax: +2 02 31316115 Fax: +2 02 31316116E-mail: investor.relations@telecomegypt.com.eg Notes to Editors: Within this statement, we may make forward-looking statements regarding futureevents or the future performance of the Company. By their very nature,forward-looking statements involve inherent risks and uncertainties, bothgeneral and specific, and risks exist that the predictions, forecasts,projections and other forward-looking statements will not be achieved. Youshould be aware that a number of important factors could cause actual results todiffer materially from the plans, objectives, expectations, estimates andintentions expressed in such forward-looking statements. When relying onforward-looking statements, you should carefully consider the political,economic, social and legal environment in which Telecom Egypt operates. Suchforward-looking statements speak only as of the time of this release today.Accordingly, Telecom Egypt does not undertake any obligation to update or reviseany of them, whether as a result of new information, future events or otherwiseother than as required by applicable laws, the Listing Rules or Prospectus Rulesof the United Kingdom Listing Authority, the Egyptian Capital Markets Authorityor the Cairo and Alexandria Stock Exchange. The documents filed from time totime with these authorities may identify important factors that could causeactual results to differ materially from those contained in any forward-lookingstatements. About Telecom Egypt Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started itsoperations in 1854 with the first telegraph line in Egypt. Then it wascorporatized in 1998 to replace the former Arab Republic of Egypt NationalTelecommunication Organization (ARENTO). The Company is the largest provider offixed-line services in the Middle East and Africa with 11.23 million subscribersas at the end of December 2007. TE provides retail telecommunication services including access, local, longdistance and international voice, Internet and data, and other services. Thecompany also provides wholesale services including bandwidth capacity leasing toISPs, and national and international interconnection services. Telecom Egypt'sservices also include the provision of narrowband and broadband internet accessthrough its subsidiary TE Data. TE Data has active operations in Egypt andJordan. TE currently participates in the mobile segment in Egypt by providing mobileinterconnectivity through its current, increased 44.79% holding in VodafoneEgypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Cairo andAlexandria Stock Exchanges and the London Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange