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Zain, the leading mobile telecommunications operator in the Middle East and Africa, announces that its Q1 2008 consolidated gross revenues stood at US$1.673 billion (KD 453.2 million), an increase of 23% compared to the same period of 2007.

The company's consolidated EBITDA increased by 25% compared to last year and reached US $648.7 million (KD 175.7 million). Consolidated net profits increased by 10% on last year to reach US $270.5 million (KD 73.3 million). Year on year customer growth across the two continents where Zain operates was 54% representing 45.7 million active customers as at 31 March 2008.

Commenting on the company's Q1 2008 financial results, Zain Managing Director and Deputy Chairman, Dr. Saad Al-Barrak said: "On the back of excellent results for 2007, we are delighted that Zain continues its strong performance in the first quarter of 2008. We have experienced strong customer growth across all our operations in line with our 2011 targets of being a top ten global operator with over 110 million customers. Our impressive financial results underscore our achievements to date and we expect this trend to continue. Zain will build and add to the successes in recent years as we actively pursue expansion opportunities in the Middle East, Africa and beyond".

Zain has been following prudent policies in carrying out its investment activities through expansion and investment in infrastructure that have increased the company's financial revenues as well as its shareholder capital that stood at US$ 6.058 billion in Q1 2008, up 23 % compared to the same period of 2007.

Zain plans to continue pumping more investments during 2008 towards upgrading and expanding its mobile networks both in the Middle East and Africa in order to capitalize on the considerable growth potential in many of the markets where it operates such as Iraq, Nigeria, Sudan and Saudi Arabia which is highly expected to become a pivotal market within Zain's array of operations throughout the Middle East and Africa.

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About Zain

Zain is a leading emerging markets player in the field of telecommunications aiming to become one of the top ten mobile groups in the world by 2011. Zain was established in 1983 in Kuwait as the region's first mobile operator.

Since 2003, it has grown significantly becoming the 4th largest telecommunications company in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and Africa providing mobile voice and data services to over 45.7 million active customers (as at 31 March 2008).

In the Middle East the company operates under the Zain brand name in Bahrain, Iraq, Jordan, Kuwait and Sudan. In Lebanon the company operates as mtc-touch. Zain plans to commence operations in the Kingdom of Saudi Arabia in 2008.

In Africa, Zain operates under the Celtel brand (www.celtel.com) in 14 sub-Saharan African countries namely: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.

The company's mobile telecommunications operations in Ghana will begin in 2008. The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company had a market capitalization of over US$29 billion on 31 March, 2008.

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