SingTel Buys Warid Stake

ABU DHABI, United Arab Emirates -- Singapore Telecommunications Limited (“SingTel”) and Warid Telecom (Private) Limited (“Warid Telecom”), today announced that they have entered into a definitive agreement subsequent to which SingTel will acquire a 30 per cent equity stake in Warid Telecom for an estimated US$758 million.

In just two years from its commercial launch in 2005, Warid Telecom has reached nearly 9.7 million in reported subscriber numbers, representing an estimated market share of 16.6%, and making it the third largest mobile operator in Pakistan, as of April 2007.

With a large population in excess of 160 million growing at over 2 per cent per annum, and a young median age of 20 years, Pakistan represents the sixth largest population base in the world. Fuelled by foreign direct investment, its economy has seen strong growth over the past few years. With a current low mobile penetration rate of 36 per cent, and a strong regulatory regime, the Pakistani cellular market is one of the most attractive in the world and has recently attracted sustained interest from international telecom operators.

SingTel will invest US$758 million (subject to closing adjustments on completion of the transaction) to acquire a 30 per cent stake in Warid Telecom, valuing the company at an enterprise value of US$2.9 billion. The investment is being made as part of a strategy to support Warid Telecom’s continued growth and enhance its market position. The purchase will be satisfied through SingTel’s internal and/or external sources of funds.

Warid Telecom is part of the Abu Dhabi Group, led by HH Sheikh Nahayan Mabarak Al Nahayan, a senior member of the Emirate of Abu Dhabi’s ruling family.

Commenting on the announcement, HH Sheikh Nahayan, said: “Our partnership with SingTel marks a new milestone in the development of our company. Our customers, employees and shareholders stand to reap the benefits of this partnership as we work together to execute our long-term growth strategy. We look forward to the opportunities that this partnership will bring to Warid Telecom and to the broader telecom sector in Pakistan.”

Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY)