THE REPUBLIC OF ZAMBIA ZAMTEL PARTIAL PRIVATISATION 5th June 2010 - The Zambia Development Agency (ZDA) today

announces that it has reached an agreement to sell 75% of the equity of Zamtel to LAP GreenN of Libya for a total consideration of US$257 million
TERMS OF THE AGREEMENT The Board of the ZDA and Cabinet of the Government of the Republic of Zambia have agreed to accept LAP GreenNs offer for 75% of Zamtel, and today the parties have signed binding transaction documents. LAP GreenN will pay a total purchase consideration of US$257 million for 75% of Zamtel. In addition to the purchase consideration, LAP GreenN has committed to provide financing of approximately US$127 million for existing and new network expansion projects. A portion of the purchase consideration will be invested directly in Zamtel to recapitalise the business. As part of the revitalisation of Zamtel, LAP GreenN has committed to a fiveyear business plan, which foresees a rapid and sustainable return to growth, underpinned by a major investment in network infrastructure and support systems, to modernise the company. The Government will retain an on-going interest in Zamtel through its 25% shareholding and associated veto rights and representation on the Board. The Government retains the right to list some or all of its holding in Zamtel in the future on the Lusaka Stock Exchange. USE OF PROCEEDS The Government have allocated a substantial proportion of the total purchase consideration for the payment of the agreed settlement packages to all of Zamtels employees. Payment of these packages will be overseen by independent auditors to ensure that each individual employee receives the correct amount. As part of the process, LAP GreenN intends to retain a proportion of the workforce, sufficient to operate Zamtel in an optimal manner and in line with its five-year business plan. Commenting on the transaction, Dr. Situmbeko Musokotwane, Minister of Finance and National Planning said The Government of Zambia has today paved the way for completing the most significant privatisation in the history of Zambia. We are delighted to have signed an agreement with LAP GreenN, who have both the resources and the track record in the African telecommunications sector to turn Zamtel around and deliver rapid change and tangible benefits to customers and the people of Zambia. Todays agreement is not only an excellent outcome for the Government and Zamtel employees, but also a major step towards reinvigorating the Zambian telecommunications market, and ensuring that more people have access to more affordable services, and that Zambians have high-speed access to the Internet, and can contribute to and benefit from the digital economy. We look forward to the timely completion of the transaction. Mr Andrew Chipwende, Director General of the ZDA said This is a groundbreaking agreement, not just because of its size, but also because the ZDA has actively employed a process that has prepared the asset for privatisation setting an important precedent for the future. A significant amount of work has laid the foundation for a rapid turnaround at Zamtel, and we are confident that we have found in LAP GreenN the long-term strategic partner who can build on the work already done, and transform Zamtel into a company that makes a substantial and critical contribution to the Zambian economy.

Mr Abdulbaset Elazzabi, Managing Director of LAP GreenN said: The announcement today is hugely significant for LAP GreenN. This is the single largest investment that we have made to date. Zambia is a key part of our wider strategy to build telecom networks across the African continent, and we are extremely happy to have been selected by the Government of Zambia to become their partner in Zamtel. We believe that we can make Zamtel not only a successful company, but one that delivers benefits to all Zambian companies, consumers and the people, as we have done in other African markets. LAP GreenN has the experience to turn around this company as we have done in the other countries we operate in including Uganda, Rwanda, Southern Sudan and Cote dIvoire. The agreement becomes unconditional at the close of the transaction, which is expected by the end of June 2010. At completion, there will be a formal handover by the Government of the Republic of Zambia to LAP GreenN. A detailed announcement will be made at that time. CONTACT For further information, or to request an interview, please contact: zamtel@zda.org.zm or zamtel@utl.co.ug NOTES TO EDITORS 1. LAP GreenN Overview: LAP GreenN is a provider of total communication solutions, offering mobile and fixed voice, data, Internet and business continuity services. It currently has operations in five African countries (Uganda, Niger, Rwanda, Ivory Coast and Southern Sudan) with an additional two operations due to launch imminently in Sierra Leone and Togo. At the end of 2009 the company had more than 4.5 million subscribers.

LAP GreenNs operations are amongst the fastest growing companies in the countries in which it operates. LAP GreenN is an independent company, headquartered in Uganda. LAP GreenN is wholly owned by the LibyaAfrica Investment Portfolio (LAP), which was incorporated in 2006 as a Libyan foreign investment vehicle, primarily focusing on contributing to the development of African countries. The LAP has a capital fund in excess of US$ 5 Billion. 2. Negotiation Process: Final negotiations in the Zamtel privatisation process took place in Zambia, on the 11th and 12th May 2010. Two parties were invited to negotiate: LAP GreenN and UNITEL / Angola Cables. The ZDAs independent negotiating team was chaired by Mr Christopher L. Mundia, SC, and appointed under the provisions of the ZDA Act 2006. At the close of the negotiations, on the 12th May, 2010 the independent negotiating team informed LAP GreenN that they had been selected as Preferred Bidder and invited them to negotiate and sign transaction documents. Subsequently, the ZDA Board met to consider their offer, which was approved on the 3rd June 2010. Cabinet of the Government of the Republic of Zambia approved the offer on the 5th June 2010. RP Capital Advisors acted as financial advisors, Simmons & Simmons as international legal counsel, and Mulenga Mundashi & Co. as local legal counsel to the ZDA on this transaction. Standard Bank acted as financial advisors, Denton Wilde Sapte as international legal counsel and Corpus Legal Practitioners as local legal counsel to LAP GreenN.