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Mobily Awards Motorola an SA435 million Contract to Expand its Network in Saudi Arabia


Latest expansion will provide enhanced communications services for more Saudi residents

RIYADH, Saudi Arabia . – Motorola, Inc. (NYSE: MOT) today announced a contract worth approximately SA435 million ($116 million) with Etihad Etisalat (Mobily). The contract marks the fifth major turnkey GSM network expansion that Mobily has undertaken with Motorola in the past four years. Saudi Arabia’s Northwest and Southwest regions will benefit from enhanced GSM coverage and capacity and the contract underscores Motorola’s commitment to Saudi Arabia and further reinforces the strong relationship with Mobily.

The turnkey expansion will enable Mobily to expand its network coverage to increase its subscriber base within the Kingdom of Saudi Arabia. Motorola will deliver its GSM infrastructure solutions as well as comprehensive range of services.

“The demand for reliable communications services in the Kingdom of Saudi Arabia is growing and the Mobily expansion project of our GSM network will help to meet the demands and expectations of new subscribers in the western north and southern north regions,” said Khalid Al-Kaf, CEO of Mobily. “Our relationship with Motorola and other international companies began in 2004 and we have achieved tremendous success in making Mobily the most trusted mobile service provider in the Kingdom.”

“Motorola is a global leader in GSM and our innovative technologies and solutions provide a reliable and scalable network for Mobily to meet growing customer demands,” said Ali Amer, vice president sales, Middle East, Africa & Pakistan, Motorola Home & Networks Mobility. “This turnkey expansion will allow for maximized return on investment, rapid deployment for Mobily and enhanced services for Mobily customers.”

A portion of revenue on this contract was recognized in the third and fourth quarters of 2008.

Motorola has won a number of significant GSM network expansion contracts over the past few years. Motorola’s GSM is attractive for service providers in both new and mature markets. Some of the recent major contract wins include expansion contracts with VNPT Group in Vietnam, China Mobile in China, and Celtel Nigeria in Nigeria.

About Etihad Etisalat Company (Mobily)

Mobily, the official brand name of Etihad Etisalat, is considered the second mobile service provider in the Kingdom of Saudi Arabia. It acquired its second license to run the mobile service network in KSA in summer 2004 in a SR 12.21 billion bid. Thus, it has become the first Saudi communications company to get an operation license for 3rd generation services and beyond.

In May 2005, Mobily launched its own network to begin with providing its business services. In 2006, the International Mobile Phone Organization described Mobily as the fastest growing company in MENA after it has built the fastest mobile communications network of its kind in the region within 6 months, besides acquiring the biggest number of 3rd generation services subscribers.

In September 2007, Mobily sealed a MOU to acquire the first data company BAYANAT against SA 1.5 billion, which is considered a step towards merging fixed and mobile communications lines.

Mobily had a market share of 40 per cent approximately by the end of Q1 2008.


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