TE - Announces a Change to its Board of Directors

Cairo, 17 August 2011: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN), today announced a change to the composition of its Board of Directors as a result of yesterday's Ordinary General Meeting.

·; Ahmed Abou Ali has been appointed to Telecom Egypt's Board of Directors, with immediate effect, as an independent Board Member to succeed Hesham Saad Mekkawy, who stepped down from the Board in June. Ahmed is an Attorney of the Supreme Court of Egypt. He is also a Partner at Hassouna and Abu Ali legal practice with particular expertise in all aspects of corporate, commercial and financial law.

Commenting on the changes to TE's Board of Directors, Mr. Akil Beshir, Chairman of Telecom Egypt, said:

"I would like to welcome Ahmed to the Board as an Independent Director and look forward to his contribution as we continue to guide TE in its ongoing development as one of Egypt's foremost companies.

In addition, a change in Telecom Egypt Management Team where Mahmoud Tag Eldeen has been appointed Vice president for Human Resources, to replace Abdel Hamid Mahmoud Hamdy, who reached retirement age. Mahmoud has served as the Company's Personnel Director since 2005. He holds a bachelor degree in Military Sciences from the Military Academy, Egypt. Since 1974, he served in the armed forces and in 1979 he joined the Administrative Supervisory Authority, occupying senior positions there until 2005. Throughout his career Mahmoud has gained extensive experience in the area of ​​personnel, organization and preparation of organizational structures and the implementation of rules and regulations.

TE's CEO Mohammed Abdel Rehim added:

"Mahmoud has proven himself to be a valuable member of the team since joining TE in 2005. His appointment as Vice president for Human Resources reflects our continued commitment to the development and implementation of effective human resource management."

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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 9 million subscribers as at 30 June 2011.

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.