WASHINGTON -- The South African mobile phone company MTN today strongly condemned Turkcell's attempt to use the threat of a U.S. legal claim to extort money from MTN. The company also strongly criticised Turkcell's refusal to cooperate with the independent investigation that MTN has set up, headed by the eminent British supreme court judge, Lord Hoffmann.

Turkcell had threatened MTN with litigation in the United States alleging claims of corruption in relation to MTN's bid to participate in the second mobile phone network in Iran. In 2005, a consortium that included MTN was awarded the licence. MTN have appointed Lord Hoffmann to lead an independent investigation of the allegations. Although MTN believes there is no legal merit to Turkcell's claims and no basis for a U.S. court to consider them, it had nonetheless sought to obtain Turkcell's cooperation with the independent investigation.

Talks between MTN and Turkcell have broken down as a result of Turkcell's extortionate demands for damages and their threat to start a frivolous lawsuit in the U.S. MTN is committed to resolving the issue through Lord Hoffmann's inquiry.

"Turkcell's threat to abuse the U.S. legal system to pressure MTN will not succeed," said an MTN spokesman. "MTN wants Turkcell's cooperation with the independent investigation."

Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC)