Chairman Announces His Retirement

Cairo, 25 September 2012: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN), today announced that, after twelve years of loyal and dedicated service, its Chairman, Eng. Akil Beshir, has decided to retire from his post, with effect from 1 October, 2012.

Eng. Beshir was appointed Chairman and CEO of Telecom Egypt in June 2000. He passed on his executive duties as CEO in August 2009, becoming non-Executive Chairman.

Eng. Beshir has made a significant contribution to the fabric of the telecommunications industry in Egypt. Throughout his career he has been a tireless supporter of the role telecommunications can play in economic and social advancement.

As Chairman and CEO of Telecom Egypt from 2000, his vision was to create a national champion, operating at the heart of the telecommunications industry in Egypt to enable commerce, education and social mobility. Responsible for bringing the company to the Cairo and London stock markets in 2005, Eng. Beshir has transformed the organization from a government entity into a high-profile and admired public company, a leading telecommunications operator and a trusted corporate citizen. Latterly, in his role as Chairman, he has maintained an unwavering commitment to transparency and governance, inspiring confidence in Telecom Egypt, at home and overseas.

Commenting on the news, Eng. Hany Mahmoud, Minister of Communications and Information Technology, said:

"He leaves behind a powerful legacy and, I would like to thank him for the lasting impression he has made on the company and the industry at large."

Eng. Beshir's successor as Chairman of the Board of Directors will be confirmed to both Cairo and London markets on 30 September.

Mr. Akil Beshir, Chairman of the Board of Directors of Telecom Egypt, added:

"During my tenure at Telecom Egypt, we have witnessed a great deal of changein the home market and I am enormously proud of Telecom Egypt's track record of delivering economic value to shareholders, supporting development at home and acting as a champion of Egyptian enterprise in international markets. We have achieved this through commercial agility, commitment and foresight.

"With the new management team and Board of Directors in place and operating with conviction, this is a good juncture for me to step down. I am confident that the Board of Directors will continue to encourage the brightest minds in driving Telecom Egypt for the next decade and beyond."

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Notes to Editors:

Within this statement, we may make forward-looking statements regarding future events or the future performance of the Company. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. When relying on forward-looking statements, you should carefully consider the political, economic, social and legal environment in which Telecom Egypt operates. Such forward-looking statements speak only as of the time of this release today. Accordingly, Telecom Egypt does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise other than as required by applicable laws, the Listing Rules or Prospectus Rules of the United Kingdom Listing Authority, the Egyptian Financial Supervisory Authority or The Egyptian Exchange. The documents filed from time to time with these authorities may identify important factors that could cause actual results to differ materially from those contained in any forward-looking statements.

About Telecom Egypt

Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started its operations in 1854 with the first telegraph line in Egypt. Then it was corporatized in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The Company is the largest provider of fixed-line services in the Middle East and Africa with 7.6 million subscribers as at 30 June 2012.

TE provides retail telecommunication services including access, local, long distance and international voice, Internet and data, and other services. The company also provides wholesale services including bandwidth capacity leasing to ISPs, and national and international interconnection services. Telecom Egypt's services also include the provision of narrowband and broadband internet access through its subsidiary TE Data. TE Data has active operations in Egypt and Jordan.

TE currently participates in the mobile segment in Egypt by providing mobile interconnectivity through its current, increased 44.95% holding in Vodafone Egypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Egyptian Exchange and the London Stock Exchange.