GOP & ETISALAT REACH AGREEMENT ON SUCCESSFUL COMPLETION ON THE PRIVATISATION OF PTCL

Islamabad, December 20, 2005

Government of Pakistan (GoP) and Etisalat reached an agreement today towards successful completion of the privatisation process of the Pakistan Telecommunication Company Limited (PTCL) with the respect to Etisalat's acquisition of 26 % shares in PTCL along with management control, says a message received here from Abu Dhabi.

Etisalat appreciated the transparency of the process and the professional approach of the GoP. The GoP appreciated the firm interest and commitment of Etisalat to the privatisation process of PTCL and Pakistan.

In this round of talks held in Abu Dhabi, the Etisalat team was led by Mr. Mohamed Hassan Omran, Chairman & CEO of Etisalat, whereas Pakistan team was led by Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment and Mr. Ahsanullah Khan Ambassador of Pakistan to UAE.

The Pakistani Minister for Privatisation & Investment stated that a team from Etisalat would be arriving in Pakistan next week to finalize the transaction, which was expected to be completed in January 2006.

It may be recalled that Etisalat had been declared successful bidder after it outbid China Mobile and Sing TEL by offering US $ 2.6 billion for the acquisition of 26 % stake in PTCL.

Mr. Mohamed Hassan Omran, Chairman & CEO Etisalat said, "We are pleased to announce that our talks with GoP representatives resulted in resolution of all issues. We are looking forward towards participating in the dynamic telecom sector in Pakistan to the benefits of the shareholders of both Etisalat and PTCL."