TE Statement Regarding Impact of Recent Events

Cairo, 30 June 2011: Telecom Egypt (TE) (Ticker: ETEL.CA; TEEG.LN), has today released the following statement regarding the impact of recent events in the country.

For the period 1/1/2011 to 31/3/2011

Losses relating to fixed assets were EGP 29,974,538, as a result of damages, thefts and fires at exchanges.

In addition, losses relating to replacing copper and fiber cables in the company's telephone network, due to thefts or damages, amounted to EGP 32,781,615 for the same period.

Therefore, the total loss of these events for the period was EGP 62,756,153, noting that the book value of net fixed assets of the company after deducting accumulated depreciation in accordance with the standalone financial statements ended on 31/03/2011 was EGP 13,737,156,000. The percentage of this loss to the net fixed assets is 0.45 %.

For the period 1/4/2011 to 31/5/2011

The copper and fiber cables losses in the company's telephone network, due to thefts or damages, amount to EGP 22,806,953 for the period.

The total loss for the period from 1/1/2011 to 31/5/2011 is EGP 85,563,106.

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For further information:

Investor Relations Contacts

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 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 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.