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Qtel is delighted to announce that it has entered into a strategic relationship agreement with Rachmat Gobel of Indonesia.

As one of Indonesia's most respected businessmen, Rachmat Gobel serves as the Chairman of Panasonic Gobel, as well as Deputy Chairman of the Indonesian Chamber of Commerce and Industry and of the Indonesia Olympic Committee.

Sheikh Abdullah Al Thani, Chairman of the Qtel Group, said "We are very pleased to have entered into this strategic relationship with Rachmat Gobel, and to develop this investment together with such a prominent national businessman. We are keen to seek his guidance on a variety of issues relating to our investment in Indosat, now and in the future."

Rachmat Gobel said "I am pleased to work together with Qtel regarding its investment in Indosat. Qtel's operational strength and plans for the future should ensure Indosat grows in stature in the market and reaches its full potential. I am convinced that this investment in Indosat is beneficial for customers, employees, investors and for Indonesia."

Dr Nasser Marafih, CEO of the Qtel Group said "We are looking forward to working closely with Rachmat Gobel to address a number of challenges in Indonesia. Our relationship with Rachmat Gobel should help us meet these challenges more effectively. Our main desire is to ensure Indosat continues to grow, flourish and to serve the Indonesian communication market."

Mr Rachmat will provide Qtel with support and guidance regarding its investment in 40.8% of the shares in Indosat. Qtel stated that the financial terms of the agreement were not material for the Qtel group. Further details regarding the agreement were not disclosed.

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About Qtel

Qatar Telecom (“Qtel”) is a telecommunications service provider licensed by the Supreme Council of Information and Communication Technology (“ictQATAR”) to provide both fixed and mobile telecommunications services in the state of Qatar.

Over the past 24 months, The Qtel Group has expanded it’s geographic footprint from 2 to 16 countries in the Middle East, the Indian Subcontinent and Asia Pacific, and is committed to expansion in line with the company’s strategic vision of becoming a global top-20 telecommunications provider by the year 2020.

Qtel’s achievements include:

As of 31 March 2008, The Qtel Group achieved quarterly revenues of QR3.5 billion (US$1 billion) (2007 – QR1.5 billion (US$410 million)), an increase of 144% over the corresponding period in 2007. The Qtel Group also grew its mobile subscriber base from 9.1 million in March 2007 to 16.8 million as of March 2008.

For the full year 2007, The Qtel Group achieved annual revenues of QR10.4 billion (US$2.9 billion) (2006 – QR4.4 billion (US$1.2 billion), an increase of 135% over the corresponding period in 2006. The Qtel Group also grew its mobile subscriber base from 1.7 million in December 2006 to 16.3 million as of December 2007.

In Q1 2007, the 51% acquisition of Kuwait-based National Mobile Telecommunications Company KSC (“Wataniya”) from Kuwait Projects Company for a total cash consideration of US$3.8 billion. At the time, the largest deal of its kind in the region, this transaction won broad international recognition, including “Deal of the Year” (CommsMEA & Telecom Finance) awards.

Q1 2007 also saw the The Qtel Group extending its international presence after acquiring a 25% equity stake in ST Telemedia's Asia Mobile Holdings Pte. Ltd. ("AMH")

In August of 2007, The Qtel Group, as part of the Asiacell consortium, won a 15-year license to operate a GSM network in Iraq.

The Qtel Group is also active in the fixed-wireless space, having recently launched wi-tribe, a wimax technology company with license to operate in Jordan and Pakistan.

In November 2006, The Qtel Group entered into an agreement with AT&T Inc to acquire a strategic stake in NavLink – a leading provider of managed data services to businesses in the Middle East.

In 2006 Qtel was the prestige partner of, and official telecommunications provider to, the 15th Asian Games Doha. It was here that Qtel implemented the most advanced technology in the region, including a wide range of local and international telephone services, Internet and data services, and complete support for the television and radio broadcasting required to support the Games and transmit it to over 3 billion people around the world.

Qtel is a winner of the 2005 Gulf Excellence Award and the 2006 GCC Economic Award. The company is listed on the Doha Securities Market, Abu Dhabi Securities Market, Bahrain Stock Exchange and has a GDR listing at the London Stock Exchange.

In 2004, Qtel won the public tender for Oman's second mobile license and subsequently launched its Nawras subsidiary services in March 2005, capturing more than 1.1 million new customers (over 40% of the Omani mobile market) up to 31 March 2008.

You can learn more about this press release by visiting - www.qtel.com.qa

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