May 17th, 2000

Paltel's 3rd General Assembly Meeting

Paltel held the Third Ordinary General Assembly's Meeting, headed by Mr. Sabeih El Masri, Chairman of Paltel's Board of Directors, in Nablus; May 14, 2000. Mr. El Masri emphasized the distinguished efforts exerted by the Ministry of Post and Telecommunications and the shareholders, which facilitated the Company's mission. Highlighted issues were Paltel's strategic activities and marked accomplishments, mainly:

national and international networks' projects, customer service centers, interconnectivity of Palestine via microwave, accreditation of the ISO 9002 certificate for implementing a company-wide Total Quality Management System (TQM), regaining the utilization right of the 970 Palestinian International code and the introduction of Jawwal cellular services.
An election for the new Board of Directors was conducted during the meeting, which was attended by 60.6% of total shareholders' representatives. This resulted with 11 members as follows:
1. Mr. Sabeih El-Masri
2. Palestine Development and Investment Ltd. (PADICO).
3. Palestine Development and Investment Ltd. (PADICO).
4. Arab Bank
5. Cairo-Amman Bank.
6. Palestine Industrial Investment Co. (PIIC).
7. Palestine Real Estate Investment Co.
8. Management Consulting Services Co. (MCS).
9. Palestinian Commercial Services Co. (PCSC).
10. Alyusr for Investment
11. Palestine Investment Bank

It was announced during the meeting that separating Jawwal Company from Paltel to become an independent company is underway. Besides, profits distribution was delayed, as approved by the shareholders. Furthermore, the report of the Board of Directors and their recommendations were a focal core, as well as the auditors' report, balance sheet and profit and loss statements for the fiscal year ending December 31, 1999. Selecting auditors for the year 2000 and the General Assembly's approval of all reports presented, concluded the meeting.