RIYADH, 23 August 2007 — Ten Mobily users who took part in the Mobily roaming competition dubbed “Stay Connected,” became the winners of SR200,000 in cash yesterday.

The competition that ended on Aug. 19 was open to Kingdom’s Mobily customers who use roaming facility abroad as well as to foreign visitors to the Kingdom who use their roaming facility through Mobily network.

“This was an open competition and any Mobily user could be part of it whether by using the Mobily line outside KSA or by choosing the Mobily network while visiting the Kingdom,” Ahmad Hashimi, deputy chief marketing officer of Mobily said, adding that the aim of this competition was to display the unique services offered by Mobily to its customers.

“ By using Mobily network, its subscribers would be at a vantage position to know the difference in services between Mobily and other parallel networks.

Each of the 10 winners received SR20,000 in cash at the company’s main flagship on King Abdullah’s Street in the presence of Abdallah Al-Naim, representing the Riyadh Chamber of Commerce and Industry (RCCI), and Saud Al-Bawardi, sales manager in the Middle East Region for Mobily. Five of the winners were expatriates who visited the Kingdom and chose Mobily’s network during their stay in the country. They came from Kuwait, UAE and Qatar.

The other winners are: Faisal Salih Al-Hadithi, Aed Faleh Al-Tarifi, Jafed Nazir, Alham Khaled Ahmad and Majeed Sahab Ahmad. They were all Mobily users who chose to use their Mobily SIMs during their stay outside the Kingdom.

Since it began operations two years ago, Mobily has had an exceptional start. It has become EBITDA (earnings before interest, taxes, depreciation and amortization) positive and captured a market share of more than 30 percent in two years of operations. It is expecting margin expansion through savings made on infrastructure sharing with STC once it builds its fiber-optic backbone.

by end-2007. This, coupled with strong subscriber growth, should lead to a surge in the company’s bottom line.”

Comparing Mobily’s growth profile with Bharti Airtel — an Indian wireless operator and Vimpelcom — a Russian mobile operator, where EPS is expected to grow at a compound annual growth rate (CAGR) 2006- 2009 of 57 percent and 35 percent, respectively, the report forecast that Mobily’s EPS would grow at a CAGR 2006-09 of 67 percent.

Mobily’s stock has run up by 40 percent in the last month and a half. However, it said “we believe that Mobily’s growth profile allows further upside potential on the stock. Our discounted cash flow (DCF) valuation gives us a target price of SR81.3.We initiate coverage on the stock with an overweight rating and potential return of 21.8 percent.”

The key potential risks to Mobily’s rating include the aggressive competitive stance by Mobile Telecommunication Company (MTC) of Kuwait leading to lower subscriber growth and lower than expected ARPU (average revenue per user) for the company.