Telecom Egypt Reaches A $12.535 Million Settlement

Telecom Egypt Reaches A $12.535 Million Settlement with "B Elephant" Tanker Ship Following a Cutoff to Two Submarine Cables

Cairo, February 10 2014: Telecom Egypt (te) (Ticker: ETEL.CA; TEEG.LN), today announced the signing of a settlement with El Swefy Law Firm, the legal representatives of the "B-Elephant" tanker ship, that damaged and cut two submarine cables; EIG and TE North last March.

Under the terms of the agreement which has signaled the release of the "B-Elephant" tanker, the ship's representatives will pay Telecom Egypt $12.535 million (USD) in a full and final settlement of all expenses related to repairs, spare parts and the cost of returning the two submarine cables to their original condition.

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

"Telecom Egypt will never give up, nor compromise defending its rights and the rights of its partners in regard to the submarine cables. This includes ensuring the preservation of the company's investments and shareholders' equity. The company will continue to take all legal actions to protect the submarine cables crossing Egypt's territorial waters.

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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.