Zain Reports 2008 ResultsZain Reports 2008 Results

RIYADH, Saudi Arabia -- With commercial operations commencing on August 26, 2008, the Board of Directors of Zain’s mobile operation in Saudi Arabia announces the 2008 results reflecting 120 days of business activity to December 31, 2008. For this period gross revenues reached US $135 million (SAR 505,196 million) with active customer numbers totalling 2,010,000 (2.01 million) representing an impressive 7% market share of mobile users in the Kingdom.

In addition, the company announces a gross profit of US $4.27 million (SAR 16 million) and a net loss for the period of US $608 million (SAR 2,278 Billion), reflecting only 4 months of revenue, yet 18 months of start up and operating costs inclusive of the Initial Public Offering and the launch / preliminary branding campaigns which alone amounted US $112 million (SAR 418 million). As is the norm in newly established mobile operations with regard to relatively high and one-off start-up expenses, the company in many ways has already benefitted from and expects to reap future positive returns from these investments through further brand awareness, customer acquisition and resulting revenues.

The Chairman of Zain in Saudi Arabia, HRH Prince Hussam Bin Saud Abdul Aziz commented, “These excellent results in such a short time reflect both the prudent strategy of the management team in coordination with Zain Group worldwide and the concerted efforts of all Zain personnel in providing Saudi customers with a wonderful range of products and services complemented by a modern and super efficient network that is the envy of our competitors.”

Zain Group