MANAGEMENT OF PTCL TRANSFERRED TO ETISALAT INTERNATIONAL PAKISTAN

Islamabad, April 12, 2006

The management control of Pakistan Telecommunication Company Limited (PTCL) was transferred to Eitsalat international Pakistan (EIP), a subsidiary of Emirates
Telecommunication Corporation (Etisalat) of United Arab Emirates.

The completion of the successful privatisation of PTCL is a milestone in the privatisation and investment program of Government of Pakistan. The formal hand over of the management of PTCL to EIP was completed in a brief and dignified ceremony, where, the nominees of EIP were formally co-opted on the Board of PTCL and its group of companies.

The new Board of Directors appreciated the accomplishments of the outgoing management and Board of Directors and gave their commitment for bringing in efficiency, quality service and modern technology for the benefit of the people of Pakistan.

Mr. Awais Ahmed Khan Leghari, Federal Minister for Privatisation & Investment, H.E. Ambassador of UAE in Pakistan, senior officials of Privatisation Commission, the Ministry of Information Technology and PTCL were present during the handing over ceremony.

It may be recalled that the Share Purchase Agreement (SPA) was signed with EIP on March 12, 2006. Pursuant to the signing of the SPA, EIP paid the initial payment of US dollar 1.4 billion. The remainder amount of US$1.2 billion will be paid in 9 equal semi annual installments.

Mr. Awais Ahmed Khan Leghari on this occasion said that the handing over of PTCL management to EIP would help usher in the new era of telecommunications service in the country. The Minister further stated that the change of management would also attract fresh
investment in the country. He termed the privatisation of PTCL as an historic success under the political and democratic government of President Musharraf and Prime Minister Shaukat Aziz.

PTCL is the leading provider of basic telephony services in Pakistan. Besides providing fixed line and ancillary services, PTCL owns Pakistan Telecommunication Mobile Limited, one of the leading cellular companies in Pakistan and Paknet a countrywide Internet service provider.