7th Feb 2006 08:55
Telecom Egypt S.A.E07 February 2006 Telecom Egypt's Internet Subsidiary Increases its Paid-In Capital by EGP 225mn Cairo, 7th February, 2006: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN),announced today that its Internet Subsidiary, TE Data, has increased its paid incapital by EGP 225mn to reach EGP 315mn. This capital increase makes TE Data thelargest company in Egypt's Internet sector in terms of capitalization and one ofthe leading companies in terms of number of broadband subscribers. By virtue of owning Egypt's only fixed network, Telecom Egypt dominates 100% ofthe data wholesale market in the country. Telecom Egypt also provides data andIP retail services through TE Data, its 93.3% owned subsidiary. TE Data'scustomers include residential subscribers, small-to-medium-sized enterprises(SME's), large corporate businesses, and governmental entities. Use of Proceeds The proceeds of the capital increase will be used to: • Further strengthen TE Data's leading position in the retail broadband market in Egypt through: - Financing TE Data's capex requirements. - Allowing TE Data to look into attractive acquisition opportunities in the local Internet market • Regional expansion: - Inject cash in TE Data's existing promising operation in Jordan. Commenting on the capital increase, Mr. Akil Beshir, Chairman of Telecom Egypt,said: "TE Data is strategically important for us and this capital increase will helpus to further strengthen our position in the retail managed data and IP transitbusiness in Egypt to be able to capture more of this growth potential. Theconverged services that continue to happen over broadband, makes this one ofTelecom Egypt's fastest growing and most promising business segments." Commenting on the capital increase, Mr. Mohammed Elnawawy, Chairman & ManagingDirector, TE Data, said: "We fully expect the market for Internet, and particularly for ADSL services, tocontinue to grow strongly, driven by the attractive demographics of the Egyptianmarket, the proliferation of personal computers and the increasingsophistication of consumer needs. All of this means that demand for Internetaccess is likely to increase, and TE Data's ability to offer reliable and costeffective services is critical to our group's future. This capital increase willallow us to maintain our strong organic growth and potentially look intoattractive acquisition opportunities in the local market." - Ends - For further information: Investor Relations Contacts Tarek Tantawy, CFAGeneral Manager - Investor Relations, Investment & Financial PlanningTelephone: +202 5788826Fax: +202 5789314 Eman AnisAssistant Manager - Investor RelationsTelephone: +202 5788787Fax: +202 5789314 E-mail: [email protected] Notes to Editors: About Telecom Egypt Telecom Egypt (TE), Egypt's incumbent telecommunications operator, wasestablished in 1998 to replace the former Arab Republic of Egypt NationalTelecommunication Organization (ARENTO). As at end September 2005, the companyhad a fixed line subscriber base in excess of 10.3 million subscribers, makingit the largest fixed line provider in the Middle East and Africa. About TE Data TE Data was established in 2001 by Telecom Egypt to function as its datacommunications and Internet arm. The company is the fastest growing datacommunications and Internet services provider in Egypt. Currently, withoperations in Egypt, Jordan, Dubai, and ambitious plans in other parts of theMENA region, TE Data's portfolio includes narrowband and broadband Internetaccess services, managed dedicated Internet access services, IP VPN connectivityservices, global connectivity services in addition to consulting andprofessional services. TE Data's portfolio of services covers the communicationsneeds of all whether consumers, small and medium enterprises, large enterprises,and Internet Service Providers. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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