Celtel profitable divestment of Link Africa to Gateway Communications

Celtel International, a leading pan-African mobile communications group with over six million managed customers in 13 countries, has agreed to sell Link Africa, the satellite voice and data traffic services provider, for over US$ 50 million in cash to Gateway Communications, a prominent provider of integrated voice and data services in Africa. The sale is subject to approval by the South African Reserve Bank.

The sale of Link Africa is part of Celtel's strategy to divest non-core businesses and will enable the management to fully focus on its core business of mobile telephony in Africa.

Celtel acquired Link Africa, based in Gosselies, Belgium in early 2002 and substantially grew revenues and profits. Celtel has committed to continuing a strategic relationship with Gateway Communications.

In the year to 31 December 2004, Link Africa carried approximately 300 million minutes of traffic (an annual increase of 87%) and had revenues of US$68 million (representing less than 10% of the Group's revenues).

Celtel was advised by Lehman Brothers.

Marten Pieters, Celtel International's Chief Executive Officer, commented:

“Celtel is very pleased to have come to an agreement with Gateway regarding the sale of Link Africa. As Celtel continues to build out its footprint for mobile telecommunications services in Africa, this divestment allows us to invest even more in our core business. This agreement guarantees that Gateway will continue to provide quality connectivity services going forward and solidifies Celtel's relationship with a major strategic supplier.”

Peter Gbedemah, Gateway Communications' Managing Director, said:

“This acquisition has the potential to make a real difference to the quality and affordability of international communications in Africa. Gateway is committed to improving connectivity in the African continent and supporting the roll out of wireless services in historically underserved markets. Importantly it will allow us to build a strategic relationship with Celtel, one of the fasting growing mobile operators in the world.”

For more details, please contact: Martin de Koning, Celtel Corporate Communications Director, +31 23 554 2671 or +31 6558 22409, deKoning.M@celtel.com