Court Rules in favour of Batelco However, Batelco offers to Re-instate ex-employees.

On 17th July 2008, following legal representation by Batelco's lawyers, the Execution Court Judge nullified the previous hearing held on 13th July and in essence ruled that Batelco is not required to immediately reinstate ex-employees prior to the matters being heard at forthcoming Court hearings. However, following this legal decision; on Thursday 17th July, Batelco's Chairman Shaikh Hamad bin Abdulla Al Khalifa held discussions with H.E. Deputy Prime Minister, Shaikh Mohammed bin Mubarak Al Khalifa to discuss the issue of the 40 remaining Batelco ex-employees and reach a conclusion that would satisfy all parties involved, rather than wait until September when the case was scheduled to be heard by the Labour Courts. Even though Batelco holds a strong legal position following the nullification of the hearing of 13th July, Batelco's Board of Directors, in the interests of all parties involved decided to offer to reinstate the remaining 40 ex-employees in new roles or alternatively, Batelco will pay compensation based on the package the Arbitration Bureau had requested in their earlier ruling. Batelco's Board decided also to offer similar compensation to other employees who accepted a compensation package earlier in 2008. As previously stated, the roles held by the 40 ex-employees are no longer required by the Company. Therefore, Batelco is currently looking for roles within the organisation to accommodate them should they choose to return to work. In all cases, any returning staff will be offered training to help them meet their new requirements.The Batelco Trade Union and Management have agreed on the need to reduce staff levels and improve productivity to make Batelco more competitive as the market is impacted by significant deregulation. The way the situation has been resolved with the 40 ex-employees, will now allow Batelco and the Trade Union to manage surplus positions and will serve as the agreed framework to amicably satisfy all parties in the future. Batelco Board Secretary and Company Spokesman Ahmed Al Janahi said that the Board and Management are pleased to have reached a conclusion that satisfies all parties now, rather than wait until after the Bahrain Court's summer recess.

About BatelcoBahrain Telecommunications Company (Batelco) is the leading integrated communications' provider in the Kingdom of Bahrain and a significant force among the regions key telecommunications players.Batelco serves both the corporate and consumer markets in the most liberalised and competitive environment in the Middle East, and remains committed to delivering cutting-edge telecommunications to its customers in Bahrain and the MENA region. The Company's management and staff are driven by an enthusiasm for delivering the best customer experience based on innovation, affordability and reliability of products and services. Batelco offers complete, end-to-end telecommunications solutions for its residential, business and government customers. The comprehensive solutions portfolio covers mobile services, international roaming, Broadband Internet, satellite services, WiFi, and MPLS IP-VPN based network services utilising our Next Generation all IP Network providing Datacoms services over fixed and wireless platforms in addition to managed services including systems integration and management.Batelco has invested US$1.4 billion in Bahrain's telecom infrastructure since 1981, including significant investment in NGN (Next Generation Networks) infrastructure which has reinforced the Kingdom's position as a leading communications hub. The Company's shares are listed on the Bahrain Stock Exchange with a total capitalisation of approx US$ 3.1 billion as of June 2008. With an ongoing strategy to grow overseas, the Batelco Group incorporates joint venture operations in Jordan, Kuwait, Yemen, Saudi Arabia and Egypt.

[c] 2008 Al Bawaba (www.albawaba.com)