Etihad GO Telecom Co. — Earnings Release 2012

Jan 21, 2012

Etihad Atheeb Telecommunication Company (GO) Announces the preliminary financial results for the period ended December 31, 2011 (Nine Months) (Continue1)

7040 · 21/01/2012 19:07:05 · Announcement #23908 · View on Saudi Exchange

Etihad Atheeb Telecommunication Company (GO) Announces the preliminary financial results for the period ended December 31, 2011 (Nine Months) (Continue1)

Explanatory paragraphs (continue)

These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and therefore the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. The attached interim financial statements do not include any adjustments that may be necessary as to the realization and classification of its recorded assets or liabilities that may arise as a consequence.

Further, during the quarter ended 31 December 2011, the Company has reached and signed a full and final settlement agreement with a vendor in connection with various disputes on the performance of supplied assets which has resulted in an extinguishment of related payables in favor of the Company amounting to SR 307.5 million. In connection with the above, management has conducted an initial review for potential impairment of its property and equipment, wherein it is their conclusion that the Company's assets are not impaired. Management is in the process of completing a detailed assessment which is expected to be completed before the end of its financial year ending 31 March 2012.

Accordingly, Management has not recognized any impairment loss in the quarter ended 31 December 2011.

9. The company incurred profits on the third quarter of 2011 with the hard work and support from all the levels of the management who added a lot of values to improve the profitability of the company by negotiating better deals with the suppliers that lead to savings in the operational and Cost of Goods sold for the last nine months of 2011 compared to the same period of 2010.

Also the company continued to target the consumers as well as the enterprises business segments by offering new promotions and products towards its old subscribers and adding new subscribers.

Etihad Atheeb Telecom Company (GO) reached and signed a full and final settlement agreement for various mutual disputes with one of its suppliers on 14/12/2011 and finalized the disclosure agreement on 18/1/2012 which has mainly resulted in extinguishments of debts in favor of the company equal to (SR287.8) million. The related contractual obligations have been fulfilled and close which led to the profitability of the third quarter. This settlement is accounted for in the financials ended 31/12/2011.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.