Acquisition is a major development for Vodafone'sVodafone's fast-growing internet business

Sarmady is one of the fastest growing online businesses in the region

Vodafone EgyptVodafone Egypt

Vodafone'sVodafone's internet presence is growing every day, as a very significant proportion of new broadband users are accessing the internet through Vodafone'sVodafone's advanced technology. Giving consumers the choice of whether they wish to browse the internet either at home or on the move, is helping fuel internet penetration and increasing connectivity within Egypt.

This acquisition is a major development for Vodafone'sVodafone's internet strategy as it significantly expands its presence in online media and accelerates the roll-out of its mobile advertising business.

Vodafone is acquiring the majority of shares in Sarmady Communications ("Sarcom") - the Cairo-based digital media specialist and one of the fastest growing online businesses in the Region. This deal accelerates the advancement of the Company's new revenue generating channels - Mobile Internet and Online Advertising.

Through the Sarcom acquisition, Vodafone EgyptVodafone Egypt will own some of the largest online destinations in Egypt:

• Sarcom owns and manages some of the top content brands in the Arab region - such as FilGoal.com, which attracted around 160 million page views last year from over nine million users. Sarcom's other well known brands include: Contactcars.com, FilBalad.com and FilFan.com.

• New sites include Mangam.com and iCroc.com. These exciting additions to the portfolio are focused on the relatively untapped classified advertising market and lifestyle/entertainment guide respectively.

The transaction is an excellent strategic fit as Vodafone will continue to provide access and connectivity to growing numbers of Egyptians, through their mobile phones and fixed and USB broadband services; and Sarcom's hugely attractive content provides destination websites and rich online information for people to browse. Importantly, this exciting new alliance will further drive the growth of digital advertising in Egypt as large brands realize the benefits of this innovative, highly targeted approach.

Sarcom's online media 'magazines' are read by over 800,000 people a week and Vodafone live! and Vodafone 1010 customers already benefit from access to an impressive array of digital content - encompassing news, sports, entertainment and auto.

Sarcom has revolutionised web advertising in the region with a suite of products for small and medium enterprises and the first fully automated Arabic and English advertising system with online payment in the Middle East. Its "Ezee-ads" service enables other websites to benefit from an affiliate programme for advertising.

Commenting on the acquisition:

Richard Daly, CEO of Vodafone EgyptVodafone Egypt, said "this acquisition is pivotal in moving Vodafone into the heart of the internet space in Egypt and we can see both significant opportunities for advertisers and a great experience for consumers as a result. There is no doubt that the growth in internet use will be one of the key enablers in the advancement of Egypt; and Vodafone'sVodafone's technology will help power this significant market expansion."

Jonathan Bill, Head of Internet and Content Services at Vodafone EgyptVodafone Egypt, said "this transaction is an excellent fit. Vodafone'sVodafone's leading access channels complement perfectly the leading Arabic content sites run by Sarcom and the combined proposition is a winning combination for Egyptians."

Con O'Donnell, CEO of Sarcom, commented "We are thrilled to be joining forces with a global leader like Vodafone. The investment capacity from Vodafone EgyptVodafone Egypt coupled with our already strong working relationship will enable us to provide ever-richer content to customers as well as develop digital advertising in Egypt. We believe there are exciting growth opportunities with this expanding industry."

The acquisition is effective immediately and customers can expect exciting news and propositions from Vodafone EgyptVodafone Egypt and Sarcom in the near future.

-Ends-

Vodafone Egypt Vodafone EgyptVodafone Egypt is a total communications provider, offering customers voice, data, and broadband and fixed internet. Vodafone EgyptVodafone Egypt now boasts a team of more than 3,500 employees serving more than 15.2 million customers (June 2008) nationwide. Vodafone EgyptVodafone Egypt offers roaming services through agreements with more than 417 partners from more than 153 countries. More information about Vodafone EgyptVodafone Egypt can be found at www.vodafone.com.eg

Sarmady Communications ("Sarcom") was founded in Egypt in 2001 by Con O'Donnell and Basil Ramzy. By 2005, the major media brands had all been launched. At the beginning of 2007 the flagship portal, FilBalad.com became the number one online media in Egypt. Sarcom continues to innovate, not only in media, but also in technology, as evidenced by the launch in January of 2007 of a fully automated online advertising system with online payment - the first in the region.

© Press Release 2008

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