Doha, Qatar, 5 June 2012: Qatar Telecom (Qtel) Q.S.C. ("Qtel" or "Qtel Group") (Ticker: QTEL.QA) announced today that it has reached agreements to increase its shareholding in Asiacell, the Iraqi mobile operator.

Qtel has agreed to increase its shareholding to 60% for a total consideration of USD 1.47 billion. Qtel will initially increase its ownership in Asiacell to only 53.9%; the further increase in shareholding is subject to Iraqi Government and Regulatory Authority approval. The transaction will be financed from existing funds.

His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group commented:

"Asiacell is an outstanding business and has seen excellent performance year on year. The Iraqi market is about to enter a period of rapid broadband and data growth and Asiacell is well positioned to meet the demands of the population for high quality, reliable and affordable voice and data services.

This acquisition is in line with our long term strategy of active portfolio development through which we seek to increase our ownership in companies with significant potential. Qtel is committed to reinforcing Asiacell's position as the leading communications company in Iraq and will be investing significantly into this vision.

Asiacell has already delivered significant value to its shareholders and is expected to continue to do so. We remain committed to sharing this successful and important company with the Iraqi public and we continue to work hard on preparing for Asiacell's landmark IPO planned for later this year.

Asiacell is a very important company for the Qtel Group.  We continue to expand our regional footprint and diversification of our revenue sources. More than 80% of Qtel Group's revenues are now generated outside Qatar."

Mr. Faruk Rasool, Chairman of the Asiacell Board and pioneer of GSM in Iraq commented:

"I am proud of Asiacell's achievements to date and the part it has played in enhancing the lives of all Iraqis. We have created a company that has consistently delivered strong results and that is looking forward to more growth in the future, especially in data and broadband services.

Our relationship with the Qtel Group has been very successful for us and they have helped us achieve the market position that we now enjoy. They are regional leaders in communications and will invest with us in the next stage in our journey as we strive to be simply the best communications company in Iraq.

I am committed to the future of Asiacell and I will stay involved with the business as a shareholder and as Chairman going forward".

Qtel and Asiacell will work with the Iraqi authorities to finalise the transaction.

About Qtel 
The Qtel Group is a leading international communications company, with a significant presence in the MENA region and Southeast Asia, and having a consolidated customer base of 84 million as of March 2012. It operates a portfolio of brands including Qtel, Indosat, Asiacell, Wataniya, Nawras, Nedjma and Tunisiana.

The Qtel Group's principal activities are mobile telephone services, broadband solutions, digital futures and fibre technologies, serving both consumer and business markets. Headquartered in Doha, Qatar, the Qtel Group is ambitiously growing its global business on the basis of its insights into the needs of customers in emerging markets. Qtel Group's ultimate parent company is Qatar Telecom (Qtel) Q.S.C., whose shares are listed on the Qatar Exchange and the Abu Dhabi Securities Exchange.

Not for distribution, directly or indirectly, in or into the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. This communication is not an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful.  Neither Qatar Telecom (Qtel) Q.S.C. nor any of its subsidiaries haveregistered, or intends to register, securities in any of these jurisdictions or intends to conduct a public offering of securities in any of these jurisdictions.  In particular, no securities of Qatar Telecom (Qtel) Q.S.C. or any of its subsidiaries have been, or will be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.

About Asiacell
Asiacell is a leading provider of quality mobile telecommunications services in Iraq, with 9.02 million subscribers as at 31 December 2011. In 2009, Asiacell became the first mobile telecommunications provider in Iraq to achieve nationwide coverage, offering its services across all of Iraq's 18 governorates including the national capital, Baghdad, and all other major Iraqi cities. Asiacell's network covers 96% of the Iraqi population, making Asiacell's national coverage the most extensive of any Iraqi mobile telecommunications operator. The Company traces its origins to the establishment of Asiacell Communications Iraq LLC in Iraqi Kurdistan in 1999. Asiacell holds one of three 15-year national operating licenses issued by the Communications and Media Commission.

© Press Release 2012