EGM Statement

1 Aug 2007 07:00

Telecom Egypt S.A.E01 August 2007 Telecom Egypt An Egyptian Joint Stock Company Minutes of the Extraordinary General Assembly Convened on Tuesday, July 31, 2007 at 2 p.m. Resolution No. 1 The Extraordinary General Assembly of Telecom Egypt, which convened on Tuesday,July 31, 2007, by majority vote of the shareholders present and represented atthe Meeting, approved the amendment of the resolution of the ExtraordinaryGeneral Meeting of the Company convened on March 29, 2007 concerning amendmentof Articles 18 and 19 of the Statutes of the Company in accordance with therequest of the relevant authority, as follows: Article 18 (In Accordance With the Extraordinary General Assembly Resolution Convened on March 29, 2007) "In the event of an increase of capital by virtue of cash shares, the existingshareholders shall have a priority right to subscribe to the increase of capitalshares, pro-rata to the number of shares they own, provided that allshareholders of the same class shall all be equally entitled to enjoy thoserights. with due consideration to the priority rights of preferred shares, ifany." Article 18 Following Amendment "In the event of an increase of capital by virtue of cash shares, the existingshareholders shall have a priority right to subscribe to the increase of capitalshares, pro-rata to the number of shares they own, provided that allshareholders of the same class shall all be equally entitled to enjoy thoserights." Article 19 (In Accordance With the Extraordinary General Assembly Resolution Convened on March 29, 2007) "In the event of an increase of capital by virtue of cash shares, theextraordinary general assembly may, based on the request of the Board ofDirectors and for reasons determined by the auditor, offer all or part of theincrease of capital shares for public subscription directly, without enforcingthe priority rights of existing shareholders. The extraordinary general assembly may grant certain preferences to sharesexisting prior to the increase in capital, whether such preferences are inrespect of dividends or liquidation proceeds or both, based on therecommendation of the board of directors certified by the auditor's report inthat regard. The existing shareholders shall be notified of the increase of capital shares inthe event that priority rights are granted to them by virtue of publication orregistered letter, as the case may be, in accordance with the provisions of theexecutive regulations to Law No. 159 of 1981, while granting existingshareholders a grace period to subscribe of not less than 30 days from the datethe door is opened for subscriptions, in accordance with the provisions ofArticles 31 and 32 of the executive regulations to Law No. 95 of 1992. " Article 19 Following Amendment "In the event of an increase of capital by cash shares, the extraordinarygeneral assembly may, based on the request of the Board of Directors and forreasons determined by the auditor, offer all or part of the increase of capitalshares for public subscription directly, without enforcing the priority rightsof existing shareholders. The existing shareholders shall be notified of the increase of capital shares inthe event that priority rights are granted to them by virtue of publication orregistered letter, as the case may be, in accordance with the provisions of theexecutive regulations to Law No. 159 of 1981, while granting existingshareholders a grace period to subscribe of not less than 30 days from the datethe door is opened for subscriptions, in accordance with the provisions ofArticles 31 and 32 of the executive regulations to Law No. 95 of 1992. " Resolution No. 2 The Extraordinary General Assembly of Telecom Egypt, which convened on Tuesday,July 31, 2007, by unanimous vote of the shareholders present and represented atthe Meeting, approved the re-appointment of the Chief Executive Officer foranother subsequent one year term as of August 13, 2007, in accordance withArticle 25 of the Statutes of the Company. Chairman and Chief Executive Officer Akil Hamed Beshir This information is provided by RNS The company news service from the London Stock Exchange