Orascom Telecom Holding Announces

Orascom Telecom Holding Announces

Released on - Monday,05 July , 2010 -11:34 00

the Sale of LINKdotNET and Link Egypt to Mobinil

Orascom Telecom Holding S.A.E. (“OTH” or “the Company”) announces that it has concluded the sale of its internet services arm LINKdotNET and Link Egypt (“LINK”) to the Egyptian Company for Mobile Services (“Mobinil”).

InTouch Communications S.A.E, a wholly-owned subsidiary of OTH has signed today a share sale and purchase agreement with Mobinil for the sale of LINK. The sale excludes the non-ISP part of Link Egypt’s business and affects LINKdotNET’s Egyptian operations only. The other non-connectivity business, LINK Development, LINKonLINE, Connect Ads, Arab Finance Brokerage Company and Arpu+ will remain owned by OTH.

The deal is a cash transaction based on an enterprise value of USD 130 Million. The business represents 56% and 90% of the revenue and EBITDA of OTH Internet Services respectively.

The sale will allow Mobinil to extend broadband and corporate communications services to its more than 26 million customers; and create value for its shareholders and its 3,500 employees. Mobinil and LINK’s customers will benefit from the expected synergies between both entities, including combined offerings, expansion of distribution channels and integrated solutions (single portal, single support, single bill, complementing solutions). Whereas, Mobinil’s shareholders will capitalize on the expected synergies between the two entities, such as lower churn rate on both sides, a more convenient customer experience, more competitive solutions against competition, infrastructure savings and cost savings.

Khaled Bichara, Group Chief Executive Officer of OTH, said: “We are delighted to have concluded this deal. As per the trend in the global telecom industry, the convergence between ISP’s and operators clearly enhances the value for both businesses and enriches the value offering to their consumers.”