25 July, 2001

Paltel's Fourth General Assembly Meeting Held Recently

As the Palestine Telecommunications Company's (Paltel) fourth year of operation is concluded with more excellence, quality wise, its annual Ordinary General Assembly Meeting has been convened with a quorum on 25 July 2001. The Minister of Post & Telecommunications, Imad Falouji, presented a word from Gaza, besides the read shareholders letter by Paltel's Chief Executive Officer, Zahi Khouri, who headed the session in Nablus on Behalf of the Chairman.

The technology of Video Conferencing has been deployed by Paltel for live sight & sound transmission of the meeting between assembled shareholders from three different locations in Gaza, Nablus, and Ramallah to get over the siege, closure and movement restrictions imposed by Israel.

Khouri stressed Paltel's activities, achievements and strategic plans for 2001 and beyond. He elaborated on the invested $250 Millions per developing the IT and the telecom sectors, with the aggressive operation on connecting all areas especially remote rural areas via latest telecom technologies.

Further emphasized were the separation of the Palestine Cellular Company, Jawwal, off the Mother Company Paltel as of 2001. Above all the company's intention to open for strategic partnership was raised to be probed closely and discussed ahead. Aiming at strengthening its role as part of the Palestinian people in sharing their continuous suffering, the donated $250,000 by Paltel for social and charitable activities were touched upon.

Crucial decisions as delaying profit distribution and approving financial statements were tackled during the meeting. The report of the Board of Directors and their recommendations were on top of the agenda pinpointing the reached JD10,126 millions net profits pre-Jawwal project and the grand net profit of JD8,59 Millions besides the net revenues of JD69,2 millions. The report revealed that free cash flow amounted to JD12,121 millions with earnings per share coming to JD0,13. Capital expenditures reached JD27 millions as per network capacity expansion projects with a total of JD7.5 millions as investment in the Jawwal cellular company. The Board of Directors' report, auditors' report, balance sheet and profit & loss financial statements for the fiscal year ending December 31, 2000 were discussed and approved by the Board. Selecting the external auditors Arthur Andersen, for the year 2001, and the General Assembly's approval of all reports presented, concluded the meeting.