3-7 October 2004
GITEX 2004 Expo

Please come and visit us in GITEX 2004 at Etisalat stand

Hall 7, E7-1

26 September 2004
Press Conference
The Four Seasons Hotel
Riyadh
Kingdom of Saudi Arabia

Speech delivered by:

Etisalat President and CEO Mohammed Hassan Omran

In the name of God, the Merciful, the Beneficent

Honoured guests

Colleagues, friends…welcome

It is with a mix of pleasure and pride that I stand before you today to mark the conclusion of negotiating the financing deal that will breathe life into Etihad Etisalat Company.

First of all, I would like to express my sincere thanks and gratitude to the Government of Saudi Arabia for selecting Etihad Etisalat Company to become the second mobile operator in the Kingdom. The professionalism and transparency shown by the Communications and Information Technology Commission (CITC) set a standard to be followed and this is testified by everyone including those who have been involved in the competition for the licences without being successful.

I am excited because we are standing at the brink of a momentous technological revolution that will accompany the liberalising of the Saudi telecommunications market. This means that the prospects of growth and available opportunities are enormous which makes us both happy and proud to be here on this historic day for the telecommunications sector in the region.

The entrance of Etihad Etisalat Company as a second mobile operator in the biggest Gulf market has stimulated a major injection of energy and dynamism. We realise that there have been significant developments in telecommunications services in the Kingdom over the past few years. There are many opportunities for growth through offering innovative services and products specifically designed for this market in addition to introducing technologies and solutions that would give the market more dynamism and vitality.

Let us take just a minute to think about the opportunity that we face here in the Kingdom of Saudi Arabia. However impressive the market awakenings elsewhere, I do think that we will witness even greater changes in the most vibrant market in the region when we introduce the 3G technologies. The wisdom of the Government of the Kingdom of Saudi Arabia to allow a second GSM operator and to open the market to the next generation of mobile services in the form of 3G communications will, I believe, be truly rewarded.

Today we mark an historic event; a transaction that will go down in history and reverberate in the coming days throughout the international Islamic finance industry. In this room this morning we celebrate the teamwork of the Etihad Etisalat Company founding shareholders and a group of leading banks.

The US$2.35 billion transaction is a landmark event that will help change the face of telecommunications in the Kingdom. When combined with the funds from our forthcoming IPO, Etihad Etisalat will be a powerhouse on the regional telecommunications stage; a huge corporate achievement by any measure and one we are immensely proud to have brought to Saudi Arabia.

This is without doubt a significant occasion. Islamic finance world wide is some 25 years old and is undergoing a growth surge that is quantified at rates between 15 and 25% per annum. The fact that we have pushed the boundaries of a single transaction well over the US$2 billion mark is a huge achievement, and one that will set a benchmark for Islamic financing deals in years to come.

More than this, the US$2.35 billion bank loan places Saudi Arabia and its banks and institutions at the centre of Islamic financing; it is truly fitting that we have built this historic deal in the cradle of Islam.

The Kingdom of Saudi Arabia and Islam have ancient roots - and with this historic deal we are proving that both have earned their place in the world's financial future.

I believe this transaction is a true marriage of financial and technological innovation; and I am proud and honoured to be the one to mark its conclusion here today. I would like to thank each and every one of you for coming here to share this moment with us, and for playing a part in this historic deal.

In particular I would like to thank our Saudi partners for their confidence in believing we could build a new corporate giant in the Kingdom.

Bringing Etihad Etisalat Company to life is a dream many of us have shared, and I look forward to seeing you all regularly along the journey towards our launch.

Thank you and may God bless you.

Wasalamu Alaikum Warahmatullah Wabarakatu