06 October 2003- Wataniya Telecom’s Consortium Awarded Northern Region GSM License in Iraq

Asia-Cell, a consortium of Wataniya Telecom (40%), Asia-Cell Telecom (51%) and United Gulf Bank (9%) won the tender for the GSM license in Northern Iraq as announced by Mr. Haider Al-Abadi, the Iraqi Minister of Communication in a press conference in Baghdad on Monday. Winning a license in Iraq is yet another step for Wataniya Telecom towards achieving its strategic objective to expand its regional presence. The Asia-Cell consortium intends to quickly expand the Asia-Cell GSM network in the Northern region which already caters to approximately 50,000 subscribers.

In addition to its operation in Kuwait, Wataniya Telecom owns 50% of Tunisiana, the second mobile operator in Tunis. Wataniya Telecom has a track record of quickly deploying GSM networks and providing affordable mobile services to the markets it operates in. Mr. Faisal Al-Ayyar, the Chairman of Wataniya Telecom stated “We are honored to have been chosen by the Iraqi Ministry of Communication and the Coalition Provisional Authority which allows us the opportunity to participate in the development and reconstruction of Iraq”.

Asia-Cell is based in Sulaymaniya province and already operates a GSM network in the northern region of Iraq. Asia-Cell provides voice, SMS, voice-mail, and also has an international gateway. “Winning the license in the northern region reflects the Iraqi authorities’ trust in our capabilities as an operator. We intend to work relentlessly to provide affordable mobile services as quickly as possible to allow our people to talk freely in Iraq and to the rest of the world ” said Mr. Faruk Mustafa Rasool, Chairman of Asia-Cell.

United Gulf Bank (UGB) is the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait. UGB has total assets of about US$950 million supported by shareholders’ funds of over $230 million. UGB’s main subsidiaries are Tunis International Bank, Tunisia; KIPCO Asset Management Company, Kuwait; UGB Securities Co., Bahrain and Algeria Gulf Bank (under formation), Algeria. UGB also has equity interests of 44% in Jordan Kuwait Bank, Jordan; 34% in United Real Estate Company, Kuwait and 49% in United Industries Company, Kuwait. UGB’s activities consist of private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

UGB is acting as the sole financial advisor to the consortium.

The network deployment program will commence immediately after signing of the License. Within two months, the existing Asia-Cell network will expand to cover other areas within the northern region.

For further information, please contact:
Mr. Fuad Al-Ablani – Assistant General Manager
Wataniya Telecom
P.O. Box 613, Safat 13007 Kuwait.
Office: (965) 242 7001 Ext. Fax: (965) 242 7002
E-mail: ablani@wataniya.com Website: http://www.wataniya.com.
Or United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com