Sale of Minor Investments

7 Feb 2008 07:00

Telecom Egypt S.A.E07 February 2008 Telecom Egypt Agrees to Sell Two Minority ISP Investments Market Leading Internet Subsidiary - TE Data - to Become Strategic Focal Point Cairo, February 7, 2008: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN),announced today that it has signed a share purchase agreement to sell its 27.27%stake in Nile Online (NOL) and its 16.46% stake in The Egyptian Company forNetworks (EgyNet) to Etisalat Misr. Both transactions are expected to becompleted before March 31st 2008. Commenting on the transaction, Akil Beshir, Chairman and CEO of Telecom Egypt,said: "This move represents excellent value for Telecom Egypt and provides us with theopportunity to focus on our majority owned Internet subsidiary, TE Data, whichis currently the market leader and is growing rapidly. It is another example ofthe Egyptian telecommunications and data market, in particular, organizingitself more formally, which we embrace." - Ends - For further information: Investor Relations Contacts Alia A. Allouba Assistant Manager Investor Relations Telephone: +202 31315217 Fax: +202 31316116 E-mail: investor.relations@telecomegypt.com.eg Notes to Editors: Within this statement, we may make forward-looking statements regarding futureevents or the future performance of the Company. By their very nature,forward-looking statements involve inherent risks and uncertainties, bothgeneral and specific, and risks exist that the predictions, forecasts,projections and other forward-looking statements will not be achieved. Youshould be aware that a number of important factors could cause actual results todiffer materially from the plans, objectives, expectations, estimates andintentions expressed in such forward-looking statements. When relying onforward-looking statements, you should carefully consider the political,economic, social and legal environment in which Telecom Egypt operates. Suchforward-looking statements speak only as of the time of this release today.Accordingly, Telecom Egypt does not undertake any obligation to update or reviseany of them, whether as a result of new information, future events or otherwiseother than as required by applicable laws, the Listing Rules or Prospectus Rulesof the United Kingdom Listing Authority, the Egyptian Capital Markets Authorityor the Cairo and Alexandria Stock Exchange. The documents filed from time totime with these authorities may identify important factors that could causeactual results to differ materially from those contained in any forward-lookingstatements. About Telecom Egypt Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started itsoperations in 1854 with the first telegraph line in Egypt. Then it wascorporatized in 1998 to replace the former Arab Republic of Egypt NationalTelecommunication Organization (ARENTO). The Company is the largest provider offixed-line services in the Middle East and Africa with 11.03 million subscribersas at the end of September 2007. TE provides retail telecommunication services including access, local, longdistance and international voice, Internet and data, and other services. Thecompany also provides wholesale services including bandwidth capacity leasing toISPs, and national and international interconnection services. Telecom Egypt'sservices also include the provision of narrowband and broadband internet accessthrough its subsidiary TE Data. TE Data has active operations in Egypt andJordan. TE currently participates in the mobile segment in Egypt by providing mobileinterconnectivity through its current, increased 44.79% holding in VodafoneEgypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Cairo andAlexandria Stock Exchanges and the London Stock Exchange. This information is provided by RNS The company news service from the London Stock Exchange