It is with great pleasure that we report to you on these pages the results of a fast- paced rewarding year. Raya has been showing a solid financial performance, visible through robust financial results, and a cash surplus that enables us to invest in new projects and to follow an aggressive expansion strategy. In 2007, we reached a net profit from operations of EGP 40.6 million demonstrating a good return on investment, which we still expect to aggressively grow in the coming years. Consolidated revenues grew by 38% to reach EGP 2,273 million at YE 2007, while net income reached EGP 95 million compared to EGP 67.6 million at YE 2006, representing an increase of 40%. Earnings per share grew by a considerable 41%, and the company distributed dividends of 1,23 P.T per share for the year. It is worth noting, however, that 2007 profits include a one- time capital gain of EGP 54.4 million before tax from the proceeds of the sale of the remaining stake of Raya Telecom to Vodafone Egypt.

We are continuously seeking to improve margins and earnings and to aggressively grow our presence and market share in the MENA region and beyond. To achieve this, we have followed a strategy of fast entry into profitable markets through acquisitions and investments. After the 100% acquisition of C3 - the second largest private sector call center in Egypt, we now have two main sites in 6th of October, one in Maadi and one in Heliopolis with a total of 2,200 seats and 2,000 skilled multilingual agents. Raya Call Center has established a solid reputation with 50% of its coverage serving the North American and EMEA markets in 10 different languages. Raya has also invested in Fawry for bill payment services, with a 35% share, to cater to the demand for consumer e-payment facilities. Moreover, we invested with an 80% share in Mada for Business Process and IT Outsourcing services. Another means to improving margins and profitability is expanding value-added services, known for their lucrative profit margins. To this end, we launched our Raya-branded retail chain in 2006 and aggressively expanded the trade business to reach 62 stores. In line with our strategy to capitalize on highly populated, underdeveloped countries, we established a certified level 3 maintenance center for Nokia in Algeria as well as Nigeria where the mobile industry is witnessing peak growth rates. With our commitment to expand this business.

The key to achieving our vision is a mindset where every one of us works together

We recently inaugurated Nokia's Regional Maintenance Center’s Premises established by Best Service Co., a Raya Holding subsidiary, in the Smart Village. This state-of-the-art center is the largest in the region, with a capacity of repairing more than 1.4 million mobile phones a year. On the organizational and regulatory fronts, Raya has adopted the code of best practices in corporate governance, financial reporting, disclosure regulations and listing rules. The company’s corporate governance initiative, one of Egypt’s first, demonstrates a commitment to transparency and accountability and the board’s commitment to the company’s shareholders for good corporate governance. This alignment of the interests of management and shareholders has the ultimate objective of maximizing the profitability and long-term value of the company for its shareholders.

On the other hand, we have put a strong focus on human resource development, education and training especially in key areas that are scarce in Egypt such as professional project management. We have also completed the infrastructure backbone of the company in order to be able to pursue our aggressive growth plans for the coming years. Our organizational efficiency gives us the flexibility to act swiftly to seize opportunities, and our intimacy with the market allows us to gauge the currents of change, which makes us confident that we are in a good position to realize those plans. We look forward to reporting the results of these expansions to you, and thank you for your trust in Raya.