Mergers, Acquisitions and Financial Results

Gateway Communications, pan-African communications company, announced last week that it has agreed to acquire Link Africa, the pan-African satellite service provider and subsidiary of Celtel International, for more than USD50m in cash. The sale is subject to approval by the South African Reserve Bank.

From its international hub in Belgium, Link Africa has grown into one of Africa's largest international service providers, delivering services in more than 15 African countries, switching approximately 7.5% of the international telephone traffic for Sub-Saharan Africa. Link Africa has achieved revenues of USD68m in 2004 and substantial profitability.

The acquisition will create the largest African-focused service provider on the continent, delivering the broadest range of connectivity services in more than 25 African countries to 70 telephone companies and 600 multinational corporations.

Gateway's acquisition of Link Africa will see the company continue to benefit from the explosion of international and regional voice and data traffic within the African continent, the fastest growing communications market in the world. The investment is also a signal Gateway's further commitment to the continent.

Gateway expects to derive significant synergies from the acquisition of Link Africa through the integration of customers, services and network infrastructure and systems. Gateway intends to combine its applications expertise with Link Africa's exceptional infrastructure and engineering capabilities. Gateway will maintain the outstanding management and support staff at Link Africa creating a combined team with unparalleled expertise and experience in the African market.

Post-acquisition, Gateway will maintain a strategic partnership with Celtel and continue to deliver services across the Celtel group.