February 9th, 2009

 

The Board of Directors of Paltel has approved the General Framework for a Heads of Terms Agreement for a strategic partnership with Global Telecom Leader Zain, and in this respect has decided to send to this effect a recommendation to its Extraordinary General Assembly which will convene especially for the purposes of approving a capital increase for the purposes of entering into a strategic partnership with Zain. Such a partnership is destined to allow operations in adjacent markets in the region in a final format to be approved and presented to the General Assembly.

As such the company has mandated its Chairman to finalize negotiations with Zain and all accompanying procedures, and approvals needed for the capital increase and the entering into this strategic partnership, including the call for an Extraordinary General Assembly Meeting for the purposes of presenting the partnership agreement and the capital increase.

The Board has also asked the Palestine Capital Authority for the approval of the cessation of the trading of the Paltel stock for a temporary period starting 28/1/2009 until the finalization of the partnership and the convening of the Extraordinary General Assembly.

The company will provide the Capital Markets Authority with the Special Prospectus for the Capital Increase for the purposes of allowing the entrance of a strategic Partner.