Egyptian government approves Total Telecom License

Egyptian government approves te for Total Telecom License

Cairo, April 3, 2013: Telecom Egypt (te) (Ticker: ETEL.CA; TEEG.LN), today welcomed the approval by the relevant Egyptian authorities to grant te a license to provide mobile services, without frequencies, for 2.5 billion Egyptian pounds.

The Ministry of Communications and Information Technology (MCIT) has confirmed that it has granted te a license to provide mobile services without frequencies within the framework of an unified license, which includes similar rights and obligations to those operated by existing licensed mobile operators in Egypt. Furthermore, te will have the right to obtain frequencies, like current mobile operators, according to the conditions approved by the National Telecommunications Regulators Authority (NTRA).

Mohammed Elnawawy, Managing Director and Chief Executive Officer of Telecom Egypt, commented:

"Telecom Egypt is excited by the announcement of this decision which mobilizes our great human workforce to service the glorious Egyptian market.

"Our customers require high quality, competitively priced total telecommunications services. The Egyptian Government's decision supports the fact that this Egyptian market provides opportunities for innovation as telecommunications services and tools form the customers' personal infrastructure through which they can evolve to achieve their potential in their professional and personal lives.

"We thank the Egyptian Cabinet of Ministers and His Excellency Engineer Atef Helmy, Minister of CIT, and the NTRA for their vision for the glorious Egyptian market, as we also give thanks to all our business partners.

"te will abide by the rules of governance and proceed to develop the necessary commercial agreements with our business partners and expedite the steps set out by the NTRA, as we strive to delight our customers in the total telecommunications space by offering mobile and fixed, data and voice services."

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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 6.8 million subscribers as at 31 December 2013.

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.