November 27, 1999

Capital Increase Decision Approved

During the company’s second Ordinary General Assembly Meeting held on September 13, 1999 in Nablus, it was agreed to distribute dividends equal to 10% of the par value to its investors. In addition, Mr. Sabih Masri, the Chairman of PalTel, announced the company’s future plans to increase their capital by 50%. This increase would be taken from the profits of 1998, which amounted to JD 8.6 million (US$12m).

An Extraordinary General Assembly Meeting was held on November 27, 1999 to vote on the proposed issue. All the members approved the decision to increase the company’s capital by JD 22.5 million (US$31.5m), favoring the investors by allowing them to purchase at par value half the number of shares they currently own.