Press Release. - Mr. Asaad Al-Banwan, MTC Chairman of the Board

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1 Mobile Telecommunications Company (MTC) K.S.C. Q Earnings Release MTC serves 10.6 million customers in 18 Countries The Company Recorded Revenues of US$ million and Net Income of US$ million for an Earnings per Share of US$ 0.57 KUWAIT CITY Wednesday, August 3, 2005 The Mobile Telecommunications Company K.S.C (MTC KSE Ticker: TELE, RIC: TELE.KW, Bloomberg Code: MTSC.KK) Board of Directors met on Wednesday August 3, 2005 and are proud to announce the company's financial and operational results for the first half of MTC is considered among the leading mobile operators with operations in Kuwait, Jordan, Bahrain, Iraq, Lebanon, and sub-saharan Africa. The MTC Group is now serving 10.6 million customers as of June 30, During the first half of this year, the Group recorded consolidated revenues of KD million, a consolidated EBITDA of KD million for an EBITDA margin of 61.9% while consolidated net income reached KD 89.9 million constituting and earnings per share of 166 Fils for the half. "We commend the record-setting operational and financial results posted by MTC for the fist half of These results exceeded our expectations and are a testament to the sound management strategies of achieving the best results for the Company s stakeholders and valued customers. In light of increasingly competitive and consolidating markets, MTC is striving to implement its expansion goals for its operational activities, while maintaining its high EBITDA and Net Profit margins. This shows our success in new investments with the objective of maximizing returns on equity and returns on assets. MTC achieved an EPS of 166 Fils in the first half of 2005, a growth of 50% compared to the same period last year. Owners equity increased from KD 326 million to KD 453 million, a growth of 39%. These record-setting profits reflect the Group s successful execution of its regional and international expansions. We will continue to look for other promising opportunities in new markets which can provide accretive value to the Company and the best possible returns to all stakeholders. - Mr. Asaad Al-Banwan, MTC Chairman of the Board

2 MTC Group Operational Highlights As of June 30, 2005, the MTC Group of Companies is serving a growing customer base of over 10.6 million active customers in the Middle East and Africa, an increase of 306% when compared to the same time last year. MTC has effectively doubled its original target of serving 5 million customers by year-end 2005 prior to the middle of the year. This remarkable growth was the result of the acquisition of the Dutch-based Celtel International B.V. in one of the largest transactions in the history of the region s mobile sector, and the single largest foreign direct investment in African history. Surpassing this target comes as the first step in achieving the Group s 3x3x3 strategy set by Dr. Saad Al-Barrak, Deputy Chairman and Managing Director of MTC. It is through this strategy that the Company has been able to transform itself from a local operator to a major regional and international player in the mobile industry. Our grand ambition is for MTC to become an international corporation with the highest measures and standards of service-quality and performance to better serve our valued customers wherever they may be. In addition, it is our goal to be pioneers in the mobile telecommunications industry by offering our customers a series of special and distinctive services. We aim to surpass our customers expectations, encourage our employees, and achieve the highest returns for our respected shareholders. We are committed to success, inspired by the support we receive as members of different communities in which we operate, priding ourselves on creating new job and investment opportunities. We strive to thrust MTC into the heart of the global mobile community with the continuation of our strategy for expansion into new and promising markets, thereby getting closer to achieving our stated goals of meeting our customers demands and achieving the best returns for our stakeholders. - Dr. Saad Al-Barrak, MTC Deputy Chairman and Managing Director During the Kuwait United States Free Trade Agreement Conference in April 2005, Dr. Al-Barrak stated that while MTC s size is small compared to American companies, he is still confident of the ability to fulfill all requirements set by the Agreement. Dr. Al-Barrak also revealed that the Group plans an international listing. Subscribers by Operation Q Q Growth Bahrain % Iraq % Jordan 1,255 1,434 14% Kuwait 1,307 1,381 6% Lebanon % Middle East - Total 3,490 4,033 16% Africa - Celtel * 6,574 -

3 Total 3,490 10, % *Celtel acquired in Q MTC recorded consolidated revenues of KD million (US$ million) for the six months ended June 30, 2005, an increase of 48.5% over the same period in During the first half, the consolidated EBITDA improved by 58% to reach KD million (US$ million) representing an EBITDA margin of 61.9%. MTC has announced consolidated net income of KD 89.9 million (US$ million), an increase of 49.8% compared to the same period last year, representing earnings of 166 Fils (57 US cents) per share for the first half of This is an increase of 55 Fils compared to the EPS for same period in Consolidated Results H H Growt h KD US$ KD US$ Revenues 152, , , , % EBITDA 88, , , , % EBITDA % 58.20% 61.9% 6.3% Net Income 60, ,586 89, , % EPS % Select operational and financial highlights KUWAIT MTC Vodafone Kuwait added 74 thousand subscribers during the second quarter of 2005 to remain the leading mobile service provider in Kuwait. During the same period, MTC recorded revenues of KD 52.8 million with an EBITDA of KD 30.7 million, translating into an EBITDA margin of 58.2%. The Kuwaiti operation s net profit for the quarter was KD 25.2 million, a profit margin of 47.7%. MTC Vodafone Kuwait has established itself as the leading Kuwaiti mobile operator by rolling out leading EDGE technology services while providing customers with superior quality of service and value for money. JORDAN Fastlink maintained its market leadership by adding 179 thousand subscribers during the past three months. MTC s Jordanian operation recorded revenues of KD 32.7 million with an EBITDA of KD 16.3 million (an EBITDA margin of 49.9%). Net profit for the quarter was KD 9.08 million, a profit margin of 27.7%. BAHRAIN MTC Vodafone Bahrain increased its subscriber base by 29 thousand during the second quarter of 2005, capturing an estimated market share of 22%. With the first country-wide 3G coverage in the Middle East, MTC Vodafone continues to be a pioneer in offering the latest technologies in the region.

4 MTC Vodafone s financial performance is continually improving as it records increasingly higher EBITDA margins. IRAQ MTC Atheer added 228 thousand subscribers in Q2 2005, an increase of 66% from the previous quarter. Already covering the southern and central regions of the country, including Baghdad, MTC Atheer now looks to expand its network to the north and become the first Iraqi cellular provider with full country coverage. MTC Atheer has a 100% Iraqi workforce and that it has been able to provide over 7000 direct and indirect job opportunities by working with Iraqi suppliers and distributors. LEBANON MTC Touch ended the second quarter of 2005 serving 479 thousand customers, an increase of 33 thousand from the previous quarter. With 12 months of the 48 month management contract awarded to MTC by the Lebanese government already gone by, MTC Group has established its brand in this lucrative market and effectively placed itself in the best possible position to acquire a stake in this operation in the future. AFRICA CELTEL INTERNATIONAL B.V. Celtel builds and operates world-class communications networks that deliver reliable and competitive services in Africa, with operations in 13 African countries, under licenses that cover more than a third of the population of Africa. Celtel has invested more than $750 million in Africa, with the goal to build and operate world-class networks that will keep pace technologically with the rest of the world. Celtel currently manages 6.55 million customers in the following countries: Burkina Faso, Chad, Rep, Congo, Democratic Republic of Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Sudan, Tanzania, Uganda, and Zambia. About MTC Group MTC is the leading wireless services operator in the Middle East and Africa, managing almost 11 million subscribers in some of the fastest growing mobile telecommunication markets in the world. The Mobile Telecommunications Company KSC (the Parent Company) is a Kuwaiti shareholding company incorporated in 1983 in accordance with the provisions of the Commercial Companies Law of 1960 and the Articles of Association. Its shares are traded on the Kuwait Stock Exchange. The Company s share price on August 2, 2005, was KD 5.650, representing a market capitalization for Mobile Telecommunications Company (MTC Ticker symbol: TELE) of KD 3,131 million (US$ 10.5 Billion). Consolidated earnings per share for the first 6 months of 2005 were 166 Fils. The Parent Company and its subsidiaries (the Group) provide mobile telecommunication services under licenses from Governments of the countries in which they operate; purchase, deliver, install, manage and

5 maintain mobile telephone and paging systems; and invest surplus funds in investment securities. In September 2002, MTC entered into a Partner Network Agreement with Vodafone, the world s leading mobile community. The agreement was the first of its kind in the Middle East and has been followed with an agreement in Bahrain. MTC-Vodafone Bahrain was launched on 15th December with the official ceremony taking place on 28th December The authorized, issued, and fully paid up share capital of the Parent Company as June 30, 2005, consists of 554,220,967 shares of 100 Fils each. The principal foreign subsidiaries are as follows: Pella Investment Company, Jordan 96.5% MTC Vodafone Bahrain B.S.C. (Closed), Bahrain 60% Mobile Telecommunication Company Lebanon (MTC) S.A.R.L., Lebanon 100% Atheer Telecom Iraq (Atheer), Iraq 30% Celtel International BV 100% US$ 1 = KD 30/6/2005 For further information, please contact: Ibrahim Adel MTC Investor Relations Manager PO BOX Safat, Kuwait Telephone: ext 1973 Fax: i.adel@mtc.com.kw Hussain Ashkanani Media Relation & Communication MTC Group Tel: / Fax: h.ashkanani@mtc.com.kw