Approval of payment for mobile license

Telecom Egypt approves EGP 2.5 billion payment for mobile license

Cairo, May 6, 2014: Telecom Egypt (te) (Ticker: ETEL.CA; TEEG.LN), announces that the Board of Directors has granted approval for the company to obtain mobile license without frequencies in return for EGP 2.5 billion. The Board has also given its approval for the Managing Director and Chief Executive Officer to finalize terms and negotiations with all concerned parties, a move aimed at maximizing the company's revenues.

The decision was made after briefing the Board of Directors on the Total Telecom framework announced by the Ministry of communications & information technology (MCIT) and The National Telecommunication Regulatory Authority (NTRA).

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

"te's strong financial performance and positive cash position will make us capable of paying the Total Telecom License (TTL) fees without any external sources of finance. Such a decision came as a result of te's efforts over the recent years, applying well studied plans and carefully selected polices to provide all that is needed to operate in the mobile space. It is this approach that has enabled te to directly meet the needs of our customers for a single bundled service and further proves our commitment to a customer focused strategy."

The announcement will enable te to maximize its shareholders' value and use the company's resources to continue to develop its telecommunication services and actively participate in boosting the country's economy.

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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.