TE Statement

Telecom Egypt confirms interest to maximizing its exposure to the mobile market in Egypt Tarek Tantawy, CEO and Managing Director of Telecom Egypt commented recently that the Board of Directors of Telecom Egypt had requested management to explore various alternatives to maximize the company's exposure to the mobile sector in Egypt in the coming period, noting Telecom Egypt's current 45% shareholding stake in Vodafone Egypt. Tarek Tantawy added that the company is exploring several alternatives including increasing its stake and role in Vodafone Egypt or potentially to apply for the fourth mobile license if the Egyptian government were to make one available. Tantawy also added that the board of Telecom Egypt did not make any decisions yet and that further announcements will only be made in due course.

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For further information: Investor Relations Contacts

Ahmed Fathallah Mohamed Kamal

Investment & Investor Relations Director General Manager of Investor Relations

Tel: +202 31316699 Tel: +202 31315219

Fax: +202 31316115 Fax: +202 31316116

E-mail: [email protected]

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 Stock 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 9.3 million subscribers as at 31 March 2010.

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 Stock Exchange and the London Stock Exchange.