Paltel Announces Substantial Growth for the 1st Quarter of 2010: 9.82% Growth in Net Revenues and 20.77% Growth in Net Income; Mobile Unit Reaches 2 Million Customer Threshold

RAMALLAH, Palestine, May 4, 2010 - The Palestinian Telecommunications Company, Paltel announced its
financial results of the first quarter for 2010 exceeding all expectations
despite the advent of competition and continued market liberalization. The
announcement coincides with mobile operator Jawwal's declaration of reaching
the 2 million subscriber threshold, guided by a strategy to increase
efficiencies and market share.

Paltel's consolidated net operating revenues have grown by 9.82% to reach
US$113.06 million at the end of the first quarter for 2010 compared with US
$102.95 million at the end of the first quarter of 2009. This comes as a
result of the increase in operating revenues achieved by the company in its
mobile, media and data services which rose by 15.65%, 43.95% and 0.76%
respectively. The consolidated operating income for the company reached US
$37.63 million by the end of the first quarter for 2010 compared with US
$32.87 million by the end of the first quarter of 2009, a growth of 14.49%
achieved through an increase in the consolidated revenues and in light of the
positive effect of the new operating policy focusing management efforts on
core telecom functions. The financial results were also influenced by the
strategy, as a result net income increased by 20.77% to stand at US $32.66
million end of the first quarter, 2010 compared with US $27.05 million end of
the first quarter, 2009.

Based on the quarterly results, the company will continue enhancing
commercial opportunities while optimizing operations by focusing on the
company's core business, relying on outsourcing for non-core services. CEO of
Paltel Group, Mr. Ammar Aker, stated "that the financial results are the best
proof of the company's wise decision to re-focus on core services and is
confident in the Group's ability to continue its success in the next
quarter." Mr. Aker further added, "due to the liberalization of
telecommunications sector in the Palestinian market, the company has created
a new business strategy to increase its subscriber base.

Due to the recent changes in the market place, Paltel is currently
undergoing restructuring in order to focus on its core telecom services which
will include re-examining and reviewing business models that involve its
investments in various non telecom SME's throughout the country.

    Contact :

    Ms. Neda Morrar
    Tel: +970-2-294-4006
    Mob: +970-599-579-355
    neda.morrar@paltelgroup.ps

Contact : Ms. Neda MorrarTel: +970-2-294-4006, Mob: +970-599-579-355, neda.morrar at paltelgroup.ps