Telecom Egypt S Regulatory News (TEEG)

Cairo, 18th July, 2013: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN) today announced it has signed a long-term agreement with Etisalat Misr, a subsidiary of Etisalat UAE, for the supply of infrastructure services. The agreement grants Etisalat Misr the right to use domestic transmission services across TE's extensive network. The agreement takes immediate effect and is expected to represent a total value for TE of approximately EGP 200 million annually.

Telecom Egypt owns an extensive and advanced infrastructure which a majority of telecommunications companies depend on to offer their c retail telecom services in the Egyptian market as a better commercial option rather than building their own infrastructure networks. Telecom Egypt continues to invest in and develop its infrastructure, allowing it to continue to provide high quality services to serve the Egyptian market, which use the latest global techniques.

Telecom Egypt aims to achieve customer satisfaction in the Egyptian market and providing total telecommunications services that enable its customers to have access to high -quality advanced services.

Commenting on the agreement, TE Managing Director & CEO, Mohamed Elnawawy, said:

"Our agreement with Etisalat Misr is reflective of the continued strength of our infrastructure and the resilience of the Egyptian telecoms market as a whole. In choosing to rely on our capability and track record, Etisalat Misr will become an important customer, whose growing need for capacity in Egypt we fully expect to be able to satisfy."

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Notes to Editors:

Within this statement, we may make forward-looking statements regarding future events or the future performance of the Company. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. When relying on forward-looking statements, you should carefully consider the political, economic, social and legal environment in which Telecom Egypt operates. Such forward-looking statements speak only as of the time of this release today. Accordingly, Telecom Egypt does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise other than as required by applicable laws, the Listing Rules or Prospectus Rules of the United Kingdom Listing Authority, the Egyptian Financial Supervisory Authority or The Egyptian Exchange. The documents filed from time to time with these authorities may identify important factors that could cause actual results to differ materially from those contained in any forward-looking statements.

About Telecom Egypt

Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started its operations in 1854 with the first telegraph line in Egypt. Then it was corporatized in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The Company is the largest provider of fixed-line services in the Middle East and Africa with 7.2 million subscribers as at 31 March 2013.

TE provides retail telecommunication services including access, local, long distance and international voice, Internet and data, and other services. The company also provides wholesale services including bandwidth capacity leasing to ISPs, and national and international interconnection services. Telecom Egypt's services also include the provision of narrowband and broadband internet access through its subsidiary TE Data. TE Data has active operations in Egypt and Jordan.

TE currently participates in the mobile segment in Egypt by providing mobile interconnectivity through its current, increased 44.95% holding in Vodafone Egypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Egyptian Exchange and the London Stock Exchange.