Change to Exec Management & Board of Directors

Cairo, 3 July 2012: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN), today announced that the company's Chief Executive Officer (CEO) and Managing Director, Tarek Aboualam, has decided to step down due to personal reasons, with effect from 11th August, 2012. Further information on the appointment of Tarek Aboualam's replacement will be announced to the market in due course.

Commenting on the news, Mr. Akil Beshir, Chairman of the Board of Directors of Telecom Egypt, said:

"Tarek has made a significant contribution to Telecom Egypt, during his tenure as Vice President for International & Wholesale and as the company's CEO and Managing Director. Tarek leaves a strong legacy with a strengthened and focused leadership team and a business well positioned for the future. On behalf of the Board of Directors I would like to thank him for his contribution and wish him the very best in his future endeavors".

Separately, TE today announced the resignation of Mr. Mohamed Samy Saad Zaghloul, from its Board of Directors due to personal reasons, effective 26th June, 2012.

Mr. Akil Beshir, Chairman of the Board of Directors of Telecom Egypt, added:

"We would like to extend our sincerest thanks to Mr. Zaghloul for his support and efforts, and we wish him every success in the future."

- Ends -

For Further Information:

Investor Relations Contacts

E-mail: investor.relations@telecomegypt.com.eg

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 7.9 million subscribers as at 31 March 2012.

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.