Telecom Egypt S Regulatory News (TEEG)

Telecom Egypt to construct new high capacity cable system alongside 16 prominent global service providers

Cairo, January 28 2014: Telecom Egypt (te) (Ticker: ETEL.CA; TEEG.LN) has unveiled plans to construct a high capacity cable system alongside 16 of the world's most prominent service providers. Once completed, Asia Africa Europe-1 (AAE-1) will provide additional protection and offer an alternative to the existing heavily loaded cables systems.

AAE-1 will run for 25,000km, from South East Asia to Europe across Egypt, connecting different countries, including Hong Kong, Vietnam, Cambodia, Malaysia, Singapore, Thailand, India, Pakistan, Oman, UAE, Qatar, Yemen, Djibouti, Saudi Arabia, Egypt, Greece, Italy and France. The new cable construction is due to be completed in 2016.

AAE-1 is expected to contribute to te's revenues more than EGP 300 million, which will be realized on service delivery date. The cable system will employ 100Gbps technology along the lowest latency route with design capacity of over 40 terabits. AAE-1 is one of the largest cable systems ever launched and will present an exponential level of business growth to te, who will provide robust and reliable services to AAE-1 across Egypt.

Mohammed Elnawawy, Managing Director and Chief Executive Officer of Telecom Egypt said:

"The construction of this new high capacity cable system is testament to our continued efforts to innovate and lead the way in terms of the technology surrounding submarine cables and networks. We are well placed to take advantage of Egypt's unique geographical location as a gateway between the Asia, Africa and Europe, and look forward to working closely with our global peers in constructing the AAE-1 cable system.

"For more than 100 years, te has provided the most secure, resilient and reliable route for its international customers to connect their networks between East and West. By launching AAE-1, te can continue to play a pivotal role to the submarine cable industry over its diversified terrestrial network across Egypt."

The global service providers working alongside te include China Unicom, Chuan Wei, Djibouti Telecom, Etisalat, Mobily, Omantel, OTEGLOBE, Ooredoo, PCCW Global, Pakistan Telecommunication Company Limited (PTCL), Telecom Egypt, TOT, Viettel amongst other carriers. te signed the Construction and Maintenance Agreement (C&MA) in Hong Kong on January 27, 2014 to officially mark the commencement of the AAE-1 Project.

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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 6.8 million subscribers as at 30 September 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.