MTC Wins SA Bid

RIYADH, Saudi Arabia -- The MTC-led consortium announces that it has been successful in making the highest bid for the third mobile telecommunications licence in the Kingdom of Saudi Arabia (“KSA”) having bid SAR·22.91 billion (US$6.109 billion). The award of the licence is subject to approval from the KSA’s Council of Ministers.

This licence will give MTC a presence in the largest market in the Gulf Cooperation Council (“GCC”) in terms of population and the largest economy in the Middle East and Africa, reinforcing MTC’s position as a leading emerging markets operator.

Commenting on the transaction, Dr. Saad Al Barrak, Chief Executive Officer of MTC, stated: “We are delighted to have made the highest bid and look forward to confirmation of being awarded the third mobile licence in the attractive Saudi mobile market. We have a strong consortium of Saudi partners, the most achievable synergies, and the operating expertise to bring world class services to the people of Saudi Arabia. This success underscores MTC’s leadership position in the Middle East and beyond and recognizes the trust that the KSA has placed in us.”

MTC currently holds a 50% interest in the consortium which will be reduced to 25% following a mandatory initial public offering (“IPO”) of the new mobile operator in the KSA and allocations to two government entities.

The expected launch date of MTC’s services in the KSA is early 2008.

Mobile Telecommunications Co. (MTC)