ABU DHABI,UAE,Oct. 25,2024 -- e& and PPF Group ("PPF") today announced the successful completion of their landmark partnership,with e& acquiring a controlling stake (50% plus one economic share) in the service and infrastructure companies of PPF Telecom Group ("PPF Telecom") across Bulgaria,Hungary,Serbia and Slovakia. This acquisition marks a significant step in e&'s ongoing global expansion ambitions,diversifying and growing its geographical presence to 38 countries.

e& and PPF Telecom Group are now together in Central and Eastern Europe

This milestone is poised to transform the telecom landscape in the Central and Eastern Europe (CEE) region and deliver enhanced value to over 10 million customers across the four markets. The partnership will provide them access to cutting-edge technologies,expanded product offerings,and innovative digital services to accelerate digital growth and empower businesses and communities alike.

A partnership built on mutual strengths

The conclusion of this transaction is a significant leap forward for both e& and PPF Telecom. By combining e&'s global scale,extensive sector expertise,and digital capabilities with PPF Telecom's deep regional knowledge and proven track record of organic growth and operational excellence,this partnership is set to accelerate future growth while opening new avenues for advanced digital services,IoT solutions,and enhanced B2B offerings.

Hatem Dowidar,Group CEO,e&, added: "The completion of our transaction to partner with PPF Telecom is a momentous point in e&'s journey,extending our telecom footprint to 20 countries and the overall footprint of e& operations to 38 countries,across the Middle East,Asia and Africa,and now Central and Eastern Europe.PPF Telecom's regional expertise and e&'s global capabilities create a powerful platform for growth and innovationacross these dynamic markets.We are all committed to providing enhanced value to our customersthrough cutting-edge digital services.

I am delighted to welcome Balesh Sharma,CEO of PPF Telecom and his talented team to the e& family. Their deep understanding of the local markets will be invaluable as we move forward on this exciting new chapter."

Khalifa Al Shamsi,CEO,e& international,said: "We are excited to welcome the PPF Telecom team to the e& family. This partnership opens tremendous opportunities for cross-pollination of ideas,best practices and innovative solutions and strengthens our ability to provide state-of-the-art and reliable telecom,cutting-edge technology and digital services to millions of new customers,fostering economic growth and digital inclusion across the region.

I look forward to working with Balesh Sharma and the PPF Telecom team to leverage our combined strengths,drive greater operational efficiency and accelerate the rollout of next-generation networks and digital services. Together,we are well-positioned to drive digital advancement and explore new growth opportunities across our expanded global network."

A new era for PPF Telecom

A key differentiator of PPF Telecom is itsunique asset separation model in the telecom world. This strategically innovative approach enables greater focus and specialisation,leading to potential performance enhancements and value creation in both infrastructure and service areas.

This asset separation model will enable the new partnership to optimise resource allocation,streamline decision-making,and enhance overall efficiency.

PPF's proven lean management practices combined with e&'s global scale and resources will be a cornerstone of this partnership's operational strategy to drive significant operational synergies and cost efficiencies. This synergistic approach is set to deliver efficient and high-quality services while maintaining agility in the dynamic telecom market.

Jiří Šmejc,PPF, said: "I welcome e& as our partner in the telco business in CEE. Together,we have created a platform to drive value creation in fast-developing telecommunications markets. Our partnership with e& testifies to the quality of PPF's industry expertise and local knowledge. In return,PPF's telco teams will benefit from the global scale and technology know-how of e&,enabling us to meet our ambitions for further growth. It took more than a year and a half since our initial discussions to close this extremely complex transaction. The result is hugely rewarding,and I would like to thank both teams for their great work."

Jiří Šmejc reiterated that PPF's telco assets in the Czech Republic will remain outside of e& PPF Telecom and will be wholly owned by PPF.

Under the terms of the partnership,Balesh Sharma,PPF Telecom CEO,and his PPF Telecom management team will retain their roles at e& PPF Telecom. This will ensure the continuity of the operations while drawing on the broad expertise of PPF Telecom's teams in their respective markets.

Balesh Sharma,CEO PPF Telecom,said: "Today marks an important milestone,not only in the journey of e& PPF Telecom,but for the broader telecom sector in the region. As a result of this partnership,our customers will get even better services,including access to the e& suite of products,and will benefit from better international roaming offers. For our employees,the partnership opens new learning and development,and career opportunities,thanks to e&'s global footprint."

Value creation through strategic partnership

This deal will leverage synergies in network operations,procurement and customer service,driving increased operational efficiency and unlocking new opportunities for growth,innovation and enhanced customer experiences across the region. e&'s expertise in digital services,AI and IoT will further enhance PPF Telecom's offerings,ensuring a seamless transition and continued access to best-in-class services. Customers will benefit from an expanded portfolio of world-class products and services,including advanced B2B and IoT solutions.

This partnership is also set to bring great value to e& and PPF Telecom's employees and unlock new opportunities for career growth,cross-continental learning,and integration into a global talent network. The new joint entity,e& PPF Telecom,will operate as a standalone entity,retaining its current management team and employee base.

About e&

e& is a global technology group committed to advancing the digital future across markets in the Middle East,Asia,Africa and Europe. With the group's financial performance in 2023 showing a consolidated net revenue of AED 53.8 billion and a net profit of AED 10.3 billion,e& continues to maintain its position as a financial powerhouse,reflected by its strong credit rating and solid balance sheet.

Founded in Abu Dhabi over 48 years ago,e& has evolved from a telecom pioneer into a technology group.Its footprint now spans 38 countries,offering a comprehensive portfolio of innovative digital services ranging from advanced connectivity,entertainment,streaming and financial services to AI-powered solutions,cloud computing,ICT,cybersecurity and IoT platforms.

The Group is structured aroundfive core business pillars: e& UAE,e& international,e& life,e& enterprise and e& capital,each catering to distinct customer and market needs. These pillars empower e& to lead in various sectors,from telecom and digital lifestyle to enterprise services and venture investments. The ongoing strategic investments in AI,IoT,5G and cloud services reinforce its leadership in the global technology landscape,driving the future of smart connectivity and innovation.

Driven by innovation,sustainability and a commitment to digital empowerment,e& is set on creating a smarter,more connected future for individuals,businesses and communities.

To learn more about e&,visiteand.com.

Contact:

Nancy Sudheer,

Senior Manager at e&

nsudheer@eand.com

+971 50 705 5290