Mobinil Signs 3G License Agreement with the National Telecommunication Regulatory Authority

The 3G license agreement was signed today October 17, 2007 by H.E. Dr. Tarek Kamel, Minister of Communication and Information Technology & Chairman of NTRA, as well as DR. Amr Badawy, NTRA’s Executive President. Representing Mobinil, the agreement was signed by the Chairman, Mr. Naguib Sawiris, and Mr. Iskander Shalaby, Mobinil’s President & CEO.

At the signing ceremony in the smart village, Dr. Tarek Kamel lauded the remarkable contributions of Mobinil over the past 10 years to push the telecommunications sector forward and also praised Mr. Naguib Sawiris for his notable investments at the local, regional and international levels.

Mr. Naguib Sawiris praised the continuous efforts that have been exerted by the Egyptian government and the Ministry of Communication and Information Technology towards the deregulation and development of Egypt’s telecommunication sector, adding that ’’Mobinil is proud of having vigorously contributed to the success of this important effort over the past 10 years’’.

Mr. Sawiris also added that Mobinil’s decision to acquire the 3G license was based on several factors, including the extra frequencies granted to Mobinil in the 3G license agreement which will enable the company to meet the growing number of subscribers, estimated currently at about 14 million and is expected to exceed the 15 million milestone by the end of 2007, as well as the extension of the original license till the year 2022.

’’Mobinil is expected to launch 3G services during the second quarter of 2008’’, said Iskander Shalaby, Mobinil’s President & CEO.

Reiterating Mobinil’s position as Egypt’s leading mobile operator, Iskander Shalaby said that ’’our company’s investments for paying the 3G license fees and financing the 3G network infrastructure, estimated at EGP 5 billion, will be added to Mobinil’s current investment of about EGP 4 billion throughout 2007 for expanding and enhancing Mobinil’s network’’.

Mobinil acquires the 15-year 3G license against EGP 3.34 billion in addition to 2.4% of its total annual revenues. According to the license agreement, Mobinil is entitled to using the technologies of EDGE, UMTS, HSDPA HSUPA for providing the 3G services, including video telephony, video messaging, high-speed data transfer and high-speed file downloading, high-speed internet browsing, MBMS services, Mobile TV services, location-based services as well as Push-To-View services, after acquiring the approvals of the concerned authorities for some of these services.

October 17,2007