1. EGYPT 2007 EITESAL Egyptian Information Telecommunication Electronics & Software Alliance Walid Gad Chairman EITESAL WITSA Board Meeting Cairo 2007

2. Egypt Demographic/Economic Figures  Population more than 76 M inhabitants with 58% in workforce age  Population growth 1.94%  GDP growth in 3rd quarter 2006/07 reaching 7.4% targeting 9-10% in 2009/10  Inflation <10% targeting 7-8% in 2009/10 WITSA 2007 Board Meeting

3. Egypt Demographic/Economic Figures  FDI > $ 10B in 2006/07  Unemployment down from 11.8% in 2006 to 9% in 2007  Export growth 46% in 2006/07  IT expenditures as a % of GDP (IDC – Oct 2005) 0.9% WITSA 2007 Board Meeting

4. EGYPT ICT MARKET GROWTH 20022007 Fixed Lines: Penetration is now 15% Number of subscribers 6m11m Mobile: Penetration is now 28% Number of operators 3 Number of subscribers (over one million subscribers are added each month) 3m25m WITSA 2007 Board Meeting

5. 20022007 Internet : Users1.5m6.5m Broad Band : Users---250000 Band Width50 mb16000 mb EGYPT ICT MARKET GROWTH WITSA 2007 Board Meeting

6. Government Vision & Strategy Vision: “ The IT sector will be the main driver behind the development and growth of the Egyptian economy. It will be one of the main generators of foreign currency and will create a large number of job opportunities ” WITSA 2007 Board Meeting

7. Government Vision & Strategy Strategy: Enhancing the local ICT market size Increase the penetration of internet usage Enhance and develop the local ICT professionals Develop & strengthen local companies WITSA 2007 Board Meeting

8. Government Vision & Strategy Strategy: Stimulate ICT researches Encourage new young entrepreneurs Encourage export of products and services Attract foreign companies to establish their development and support centers in Egypt WITSA 2007 Board Meeting

9. EITESAL Formed of the top 250 companies in Egypt working in the areas of electronics (H/W), telecommunication, software development and system integration. The combined revenues of the EITESAL member companies are more than 80% of the total ICT market in Egypt. WITSA 2007 Board Meeting

10. EITESAL MISSION TO HELP GROW THE LOCAL ICT MARKET AND INCREASE EXPORTS OF ICT PRODUCTS AND SERVICES FOR THE BENEFIT OF OUR MEMBERS AND THE COMMUNITY WITSA 2007 Board Meeting

11. EITESAL STRATEGY Increase membership Develop and grow our member companies Continue to improve trading environment Build strong relations with associations outside Egypt Strengthen IJMA3 (Union of Arab ICT Association) Organize conferences and exhibitions to promote Egypt ICT sector (GPPC 2007 – WCIT 212) Close relations and cooperation with MCIT WITSA 2007 Board Meeting

12. Objectives “ Promote Egypt as the preferred outsourcing service provider ” WITSA 2007 Board Meeting

13. WHY EGYPT 250 000 graduates every year Multilingual graduates (English / French / German) Low labor cost (lower than India) Excellent communication infra structure Stable politically and socially Close to Europe Incentives WITSA 2007 Board Meeting