MTC announces a record net income of USD 1.051 billion and revenues of USD 4.167 billion or 0.85 cents per share for year ended December 31, 2006

Mobile Telecommunications Company K.S.C (MTC – KSE Ticker: TELE, RIC: TELE.KW, Bloomberg Code: TELE.KK) announces its 2006 results reflecting the following:
2006 Financial Highlights

	2006 Financial Highlights
Total Active Customers	27.037 million (as at December 31, 2006)
Consolidated Revenues	KD 1.210 billion (USD 4.167 billion)
EBITDA	KD 593.96 million (USD 2.045 billion)
Net Income	KD 305.3 million (USD 1.051 billion)
EPS	247 Fils (USD 0.85)

Key Events of the year

6 February, 2006
MTC announces full acquisition of Mobitel in Sudan

MTC announced the acquisition of 61% of Mobitel from Sudatel in a deal valued at USD 1.332 billion. Through its African subsidiary Celtel International, the deal allowed MTC to increase its stake in the Sudanese company from 39% to 100%.

21 May, 2006
MTC Group first in the region to launch 3.5G (HSDPA) commercially

MTC-Vodafone (Bahrain) launched the region’s first new high speed 3.5G service – one of the world’s fastest wireless broadband access technology using mobile phones and Data connect cards. HSDPA service dramatically increases the data by up to five times that of existing 3G networks, and 15 times that of GPRS networks, with data rates of up to 1.8 Mbps per second.

30 May, 2006
MTC’s Celtel International acquires controlling stake in V-mobile Nigeria

Through its subsidiary, Celtel International, MTC acquired a controlling stake of 65% in V-mobile in Nigeria for USD 1.01 billion. The transaction was Celtel International’s largest ever deal and expanded its presence to 15 markets on the African continent. The deal increased MTC’s customer base by over 5 million and allowed it to tap into Africa’s most populous nation – some 135 million.

27 September, 2006
Celtel launches One Network, world’s first borderless mobile phone network

MTC subsidiary Celtel International announced the launch of One Network, the first ever borderless mobile network in the world. This service allows customers to move freely across geographic borders without roaming call surcharges and without having to pay to receive incoming calls.

26 July, 2006
Landmark USD 4 Billion credit facility to fund MTC's future growth

MTC signed the general syndication agreement for the US$ 4 billion credit facility that will be used to fund MTC’s future acquisitions and general corporate needs. Representatives of 39 leading international banks attended the signing ceremony which was the largest syndicated facility for a private sector company in the Middle East.

06 December, 2006
USD 1.2 billion Murabaha facility successfully syndicated and oversubscribed

Joint bookrunners from several institutions closed syndication of a USD 1.2 billion Murabaha facility for MTC. A total of 29 financial institutions from the MENA region, Asia and Europe participated in what was one of the largest Islamic financings for 2006.

read more please visit www.mtctelecom.com

Select Operating and Financial Highlights

As of December 31 2006, MTC Group was operating on 2 continents and was serving 27.037 million active customers – an increase of 98% compared to the same period last year. The company was present in 20 countries spread throughout Africa and the Middle East – making it the 5th largest mobile operator in the world in terms of geographic footprint –serving in markets with a total population of 470 million people.

The company’s remarkable customer increase was primarily driven by its high-growth African operations; and its acquisition of Sudan’s Mobitel and Nigeria’s V-Mobile which alone added 1.84 million and 5.5 million subscribers respectively.

The company reported that its revenues exceeded KD 1.210 billion (USD 4.167 billion) for 2006, an increase of 109% relative to the same period in 2005. MTC's performance figures have been driven by organic growth, new license awards, and acquisitions over the past three and a half years since the company embarked on its profitable “3x3x3” expansion strategy. In 2006, MTC Group’s enviable financial performance was spearheaded by its more mature Middle Eastern operations and an impressive 113% increase in Celtel International’s revenues.

"The Group’s consolidated net profit was KD 305.30 million (USD 1.051 Billion) for year end 2006. These figures translate to earnings per share of 247 Fils (85 cents). This is yet another period of strong and sustainable growth in both the top and bottom lines,” said Mr. Asaad Ahmed Al-Banwan, Chairman of MTC. “MTC’s EBITDA was KD 593.96 million (USD 2.045 billion) reflecting vast Group operating efficiencies and synergies during this growth phase, and a testament to our management of a company of this size with operations at various stages of their life cycles.” added Mr. Al-Banwan. “The acquisition of the shares we did not own in Mobitel, Sudan (61%) in February 2006 coupled with the 65% of Vmobile, Nigeria that we concluded in May 2006 have significantly enhanced our portfolio with strong cash generating and high growth operations. We are continuously on the look out for new profitable opportunities.

Customers

MTC Group is now serving a growing customer base of 27.037 million active customers in the Middle East and Africa, representing a year-on-year increase of 98% due to organic growth and landmark acquisitions in Sudan and Nigeria. The company’s subsidiaries are consistently the leading operators in the overwhelming majority of the 20 countries where MTC operates, reflecting its core strategy to be the leader in the markets it serves. As of 2006, MTC’s African operations – through its subsidiary Celtel International – represented 62% of the company’s customer base while the Middle East operations: Iraq, Sudan, Jordan, Kuwait, Lebanon and Bahrain represented the remaining

***It is important to note that as of end of year 2006, the company has retroactively been reporting active customers which have carried out a chargeable event with the company within a 90 days period.

Active Managed Customers (000s)

	2006	2005	Growth
Bahrain	233	173	35%
Iraq	3,198	1,073	198%
Jordan	1,961	1,757	12%
Kuwait	1,461	1,331	10%
Lebanon	560	509	10%
Sudan*	2,754	1,962	-
Middle East Total	10,167	6,805	49%
Burkina Faso	518	299	73%
Chad	348	222	57%
Congo Brazzaville	683	378	81%
Democratic Republic of Congo	1,833	1,178	56%
Gabon	514	365	41%
Kenya	1,939	1,840	5%
Madagascar**	331	-	-
Malawi	357	199	79%
Niger	397	223	37%
Nigeria***	6,396	-	-
Sierra Leone	243	178	37%
Tanzania	1,517	971	56%
Uganda	470	291	62%
Zambia	1,325	700	89%
Celtel Total	16,870	6,824	147%
MTC Group Total	27,037	13,650	98%

All figures represent active customers those who have made a chargeable event within a 90 days period.

*MTC acquired Mobitel in February 2006.
**MTC acquired Madacom in December 2005.
*** MTC acquired V-Mobile in May 2006.

Financial Results
2006 Finanical Highlights

	KD		USD		Growth
	2006	2005	2006	2005	-
Revenues	1,210	579.50	4,168	1,982	109%
EBITDA	593.96	333.83	2,011	1,142	78%
EBITDA Margin	49%	58%	49%	58%	-
Net Income	305.30	181.91	1,050	622	68%
EPS	247 Fils	182 Fils	85 Cents	62 Cents	36%

MTC recorded consolidated revenues of KD 1.210 billion (USD 4.167 billion) for 2006, an increase of 109% compared to 2005. The consolidated EBITDA increased by 78% compared to last year and reached KD 593.96 million (USD 2.045 billion), a margin of 49%. MTC also announced a milestone consolidated net income of KD 305.30 million (USD 1.051 billion), an increase of 65% compared to 2005, representing earnings of 247 Fils (USD 0.85) per share.

Dr. Saad Al-Barrak, Managing Director-Deputy Chairman of MTC said: “The results we have announced today are a testimony to our company’s achievements so far this year and I confirm to you that the comparative growth we have achieved over the last few years indicates great aspirations and proper execution of well-thought out plans. Our operational and financial strategies are aimed at ensuring that MTC maintains the dynamic qualities that have brought us to where we are today. I am very grateful to all MTC employees whose dedication and hard work formed the cornerstone of this company. We have put in place a corporate governance model complemented by processes and initiatives to manage growth and derive the synergies that give us a competitive advantage. Ensuring that we address all stakeholders is complemented by our commitment to our Corporate Social Responsibility and our adherence to best practices in all our activities and commitments. What sets us apart and distinguishes MTC is the power of execution.”

ACE Strategy –To be one of the top 10 mobile operations in the world by market capitalization

Dr. Al-Barrak added: “Integrating all of our operations will yield more benefits and better results in the future. The transformation of MTC into a global company will come as a result of disciplined execution of vision and the achievement of ambitious objectives. To this end, at the beginning of 2007, MTC launched ACE -an implementation strategy to realize the target of the 3x3x3 vision. ACE seeks to extract superior value from existing assets through three main thrusts: Accelerating the growth in Africa; Consolidating the existing assets; and Expanding into adjacent markets. We have set new targets by the year 2011 of achieving a customer base of 70 million, an EBITDA of USD$6 billion and a market capitalization exceeding USD$30 billion. Through the ACE strategy, MTC will become one of the top 10 operators in the world by market capitalization.

Future opportunities

The Kingdom of Saudi Arabia has launched a process that will lead to a 3rd license award and we will participate and we are confident of success. We are certain our leading position and achievements to date in Iraq and our long term commitment to the country will be rewarded by the granting of a longer term license. We are also evaluating a couple of smaller opportunities in Africa" concluded Dr. Al-Barrak.

Sam M. Deeb, MTC Group Chief Financial Officer commented: “MTC is becoming a telecommunications powerhouse. We strive to accomplish the transformation of MTC into a global company without compromise. The rapid growth both organically and through acquisitions has created some challenges and opportunities that we will leverage to be among the best companies in the world. MTC today is on track to continue the year with yet another set of record financial results.” Mr. Deeb added: “Financial institutions across the globe have shown confidence in MTC by extending to us favorable credit facilities of over USD$6.7 billion in 2006 alone. MTC operates in some very challenging environment where the company has to be very diligent to maximize total return to all stakeholders”.

Enquiries:

Ibrahim Adel
Phone: +9659006779