Batelco Enters into Non-Binding Term Sheet with Zain KSA

Manama, Bahrain: Further to previous announcements, Kingdom Holding Company (“KHC”) and Bahrain Telecommunications Company BSC (“Batelco“) (together, the “Consortium”) today announced that on 19th July 2011 they entered into a non-binding term sheet (the “Term Sheet”) with Mobile Telecommunications Company Saudi Arabia (“Zain KSA”) in respect of the proposed acquisition by the Consortium of all the shares held by Mobile Telecommunications Company KSC (“Zain”) in Zain KSA.

This follows Zain’s acceptance of a non-binding offer from the Consortium to acquire such shares, being 25% of the total issued shares of Zain KSA, as previously announced by each of Zain, KHC and Batelco.

Batelco is the leading telecom in the Middle East.

This press release has been issued by Batelco Corporate Affairs department. For further information, please contact Batelco Public Relations Office Public.Relations@btc.com.bh / Fax +973 17611898