Deal is part of Zain's promise to deliver customers a unique experience on a high- quality network

Lagos, Nigeria, June 8, 2009: In the first agreement of its kind on the African continent, Zain, the leading mobile telecommunications provider in the Middle East and Africa, has teamed-up with Ericsson, the world's leading provider of technology and services to telecom operators. Ericsson will be responsible for managing most of the network and field operations for Zain's wireless networks and operational support systems, serving almost 4,000 sites across Nigeria. Also as part of the agreement, about 450 employees will be transferred from Zain Nigeria to Ericsson under their existing terms and conditions of service, where they will undergo further development in the latest wireless technologies.

Through this accord, Zain and Ericsson will be better positioned to support the evolution and growth of the local telecommunications market with each side focusing on their particular areas of specialization. This is a unique deal for Zain and a major initiative within its ACE strategy that will propel Zain into the ranks of the world's top-ten mobile telecommunications companies by the end of the year 2011. An integral part of this strategy is for Zain to execute its 'Drive11' program to increase its focus on managing its customer relationships while improving its control on non-customer facing functions, some of which will be outsourced to strategic partners.

The deal also gives Ericsson its first major managed services opportunity in Africa, in particular Nigeria, reflecting the increased attention of both companies on markets where high customer growth is expected within the next five years. Zain currently serves over 15 million active customers in Nigeria.

Mr Chris Gabriel, CEO of Zain Africa, confident that the outsourcing agreement will have many benefits for the company and its customers, commented, "Choosing Ericsson, which has more than 15 years' experience in managing outsourced networks to help operate our network in Nigeria fits perfectly with our 'Drive11' business objectives of improving efficiency and the quality of our networks and operations." He further added, "As a result, we will be in a far 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 our Zain brand promise of 'A wonderful world'."

Mr Lars Lindén, President, Ericsson sub-Saharan Africa, was equally upbeat about the agreement, believing that Ericsson's first managed services contract in Africa will deliver significant financial and operational efficiencies for Zain over the five-year term. "Managing outsourced networks and services are one of the fastest-growing areas in telecoms across the globe, and Nigeria is demonstrating strong growth and increased levels of investment and competition," he said. "The synergies between the two companies will ensure best-in-class network stability and market support."

Lindén was also excited about the prospect of the Zain employees that will be transferred to Ericsson under the agreement. "With their knowledge and expertise, Zain employees will be welcome additions to an area that is a core business for Ericsson," he said. "This agreement will allow both companies to strengthen their competitiveness, which will ultimately increase market growth for mobile services."

Zain's agreement with Ericsson will improve network efficiency, make the most of Zain's network investment and reduce operating costs for approximately 4,000 sites across Nigeria. It will further strengthen Zain's competitiveness by achieving savings in network operations, a shorter time-to-market for new services and technologies, and improve the overall quality of service. ENDS

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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 operators in the world by 2011. Today it is the 4th largest mobile network in the world in terms of geographical footprint with commercial presence in 24 countries spread across the Middle East and Africa providing mobile voice and data services to 64.7 million active customers as at 31 March 2009.

Zain operates in the following countries: Bahrain, Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Iraq, Jordan, Kenya, Kuwait, Malawi, Madagascar, Niger, Nigeria, Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda and Zambia. In Lebanon, the company manages the network on behalf of the government operating as mtc-touch. In Morocco, Zain in a joint venture owns 31% of Wana Telecom.

On May 18, 2009, Zain entered into a merger agreement with Palestinian Telecommunication Company Plc (Paltel) that will result in Zain attaining 56.5% of the company subjective to regulatory approvals.

Zain offers innovative services in its markets such as One Network, the world's first borderless mobile telecommunications network enabling customers to receive calls and sms without charge and to make them at local rates throughout many countries in Africa and the Middle East. Customers can also top up their mobiles with airtime bought in their home country or from more than 1,000,000 outlets across 18 countries.

The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). Zain is listed in the Financial Times' Global 500 Index which ranks the world's largest companies based on market capitalization (http://www.ft.com/reports/ft5002008). For more, please visit www.zain.com  or email info@zain.com

About ACE and Drive11
ACE is Zain's corporate strategy. The acronym means Accelerate, Consolidate and Expand, which are the three pillars of its growth. The objective of ACE is to propel into the ranks of the world's top-ten mobile telecommunications companies by the end of the year 2011. This year, Zain announced a strategic program on its ACE agenda, named 'Drive11', which will enable it to achieve ultimate efficiency in value creation. As a result, Zain will put increased focus on customer-facing functions and will enhance its control on other functions by centralizing them or by outsourcing them to strategic partners. This program comes at a vital stage of the company's expansion vision. It will maximize economies of scale and realize significant efficiencies, providing the company with the necessary thrust to capture the large growth potential in the markets in which it operates.

About Ericsson
Ericsson's 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. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 250 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27 billion (SEK 209 billion) in 2008. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.

For more information, visit www.ericsson.com or www.ericsson.mobi

© Press Release 2009