MAROC TELECOM’S REVENUE UP BY 11.8%

Mergers, Acquisitions and Financial Results

Maroc Telecom first nine months revenues amounted to 17,083 MAD million, up 11.8% due to the strong momentum of all its activities. Third quarter consolidated revenues reached 6,195 MAD million, up 12.1%.

Abdeslam Ahizoune,Chairman of the Management Board, declared: « During the third quarter, Maroc Telecom scored once again very satisfactory results, in particular in its Mobile and Internet activities that strengthen our market leadership and let us feel highly confident in our annual forecasts. »

In the first nine months, Fixed-line and Internet gross revenues amounted to 9,414 MAD million, up 6.3%. This gain is mainly due to public telephony (revenues up 12%), international incoming traffic growth (+12%), advance of broadband Internet activity and data services to corporate customers and telecom operators with strong revenues growth (+22%), stimulated by price cuts since the beginning of the year. The average voice bill per customer remained stable.

The fixed-line customer base stands at nearly 1.27 million of lines, down 5.8% compared to September 2005, while the ADSL customer base is still soaring, standing at nearly 342,000 lines (+163,000 lines i.e, +91% year-on-year).

To build customer loyalty and to attract new clients, Maroc Telecom launched new fixed telephony unlimited offers, named Phony, which allow customers to give such local and national calls to Maroc Telecom fixed-line numbers.

During the first nine months, the Mobile business accounted 11,121 MAD million gross revenues up 16.7% year-on-year. This revenues increase is the result of the sustained customer base growth, that reached 10.496 million, i.e. a 30.5% surge year-on-year and net adds of nearly 2.5 million customers. Therefore, Maroc Telecom market share soared by 3 points to 70.45% at September 30, 2006.

Nine first months blended ARPU amounted to 116.7 MAD, down 8% compared to 2005, in the context of customer base growth and average call price decrease. Third

quarter ARPU remained stable compared to the previous one. The churn rate(2) reached 20.4% (+8.5 points year on year) due to customer base growth and access fees decrease.

In Mauritania Maroc Telecom results are as follows. The first nine months revenues of Mauritel Fixed-line business amounted to 232 MAD million, down 4.9%, with a customer base of 36,508 lines, down 8,8%. During the same period, Mauritel Mobiles revenues reached 506 MAD million, up 20.5%, with a customer base of 558,203 customers, up 23,5%.