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Nov 23 2011

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Zain enters into strategic US$650 million five-year network outsourcing and optimization agreement with Ericsson in Iraq

Ericsson will modernize, manage, operate and improve the wireless network and IT operations
Baghdad, November 23, 2011 - In one of the largest deals of its kind in the Middle East, Zain, one of Iraq's leading mobile telecommunications providers, has signed a US$650 million five-year network outsourcing agreement with Ericsson , the world's leading provider of telecommunications technology and services and its local partner SIM (Service in Motion). Under this agreement, Ericsson will optimize, modernize and manage IT operations and Zain's mobile network in Iraq that currently includes more than 3,700 sites across the country. This agreement also extends to the northern region of Kurdistan where Zain has recently launched commercial services and is expanding to meet customer demand.

This is a significant deal for Zain as the agreement is expected to enhance the company's competitiveness in the Iraqi market. Zain served over 12.4 million active customers in Iraq as of 30 September 2011. The deal with Ericsson will enable Zain to increase its focus on its core customer facing business activities such as managing its customer relationships and to offer a shorter time-to-market for offering new services and technologies. The arrangement with Ericsson has the objective of improving network efficiency, reducing operating costs and optimizing Zain's investment in Iraq.

The deal also gives Ericsson its first major managed services agreement in Iraq, reflecting the increased attention of both companies on the growing Iraqi market.

Preparing for the future, Ericsson will replace and upgrade Zain's network by introducing a single-RAN (Radio Access Network) platform, the latest advanced multi-technology, multi-standard and multi-band platform. This more advanced technology combined with Ericsson 's managed services offering built on improved quality of service and operational efficiency is a step towards giving Zain in Iraq the ability to launch and support 3G technology, and improve its customer experience.

Mr Nabeel Bin Salamah, Zain Group CEO said that "Through this agreement, Zain in Iraq will be better positioned to support the evolution and growth of the Iraqi telecommunication industry. Zain Group's investment in Iraq since the launch of commercial services in 2003 and the subsequent development of the country's largest mobile network has exceeded US$4.5 billion and we will do our utmost in ensuring that all Iraqis receive the urgently-needed quality mobile telecommunication services they deserve"

Emad Makiya, CEO of Zain Iraq , confident that the outsourcing agreement will have many benefits for the company and its customers, commented, "Choosing Ericsson , which has well over 15 years' experience in managing outsourced networks in partnership with SIM to help operate our network in Iraq, fits perfectly within our business objectives of improving efficiency and the quality of our networks and operations." He further added, "As a result, we will be in a stronger position to dedicate resources and assets to our core business operations, continuing to improve customer support, developing and launching new products, services and mobile applications, and delivering on the Zain brand promise of 'A wonderful world'."

Anders Lindblad, President of Ericsson Region Middle East, said: "This agreement will allow Zain to strengthen its competitiveness in this growing market and allow them to focus on providing an improved experience to its mobile services subscribers." He continues to add, " Ericsson has more than 45,000 service professionals and over 15,000 sourced resources, working with the same tools, methods and processes globally. We are now welcoming additions to that through the knowledge and expertise of the Zain employees in Iraq."

Following its recent expansion to northern Kurdistan, Zain plans to invest in its network infrastructure in the coming years to increase its network coverage in the country. The company's Corporate Social Responsibility support programs have stretched across many needy areas over the years, with Zain Iraq 's total contributions exceeding US$25 million to date. The company employs over 2,500 Iraqi nationals who regularly undergo professional training and advancement programs.

- Ends -

Notes to editors:
About Zain
Zain is a leading telecommunications operator across the Middle East providing mobile voice and data services to over 41.4 million active customers as of 30 September 2011. With a commercial presence in 7 countries, Zain operates in the following countries: Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia and Sudan. In Lebanon, the company manages 'mtc-touch' on behalf of the government. In Morocco, Zain has a 15.5% stake in Wana Telecom, now branded 'INWI', through a joint venture. Zain is listed on the Kuwait Stock Exchange (stock ticker: ZAIN).

For more, please email info@zain.com or visit:
www.zain.com
www.facebook.com/zain
www.twitter/zain
www.youtube.com/zain

About Zain Iraq
Established in 2003, Zain Iraq is the largest operator of mobile telecommunications services in Iraq providing quality mobile and data services to more than 12.4 million customers as of 30 September 2011. The company is heavily focused on contributing to the economic and social development of the Iraq economy on many fronts through its extensive investments (over US$4.5 billion# in network infrastructure to date), employment of Iraqi nationals and countless corporate social responsibility programs over the years. Recently the company extended its commercial services to the northern Kurdistan region. For more please visit:
www.iq.zain.com
www.facebook.com/zainiraq
www.twitter.com/zainiraq

About SIM:
SIM is a consortium comprising Shabakkat "Managed Services Provider", IDS "Power and Infrastructure Services Provider" and Metco "Broadband and Transmission Service provider"; three companies of the region's leading Telecommunication service providers; these companies have been supporting the Zain Iraq telecom network since its establishment in 2003. By leveraging capabilities and experience, and with a task force exceeding 1000 employees, SIM is one of the largest providers of telecom services and infrastructure in Iraq. For more please email info@simtelco.com

About Ericsson
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST- Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (US$28.2 billion) in 2010. Founded in 1876 with its headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

www.ericsson.com
www.twitter.com/ericssonpress
www.facebook.com/technologyforgood
www.youtube.com/ericssonpress

For further information, please contact:
Ericsson Region Middle East Public & Media Relations
Fida Kibbi, Head of Public and Media Relations
Phone: +97155600 1005
E-mail: rmedia.media@ericsson.com