Euronet reports Saudi Telecom deal

Source: Euronet Worldwide

Euronet Worldwide's (NASDAQ: EEFT) ATX subsidiary, a leading provider of electronic prepaid voucher solutions in over 60 countries worldwide, today announced an exclusive electronic top-up agreement with all of the distributors of Saudi Telecom's prepaid products.

Saudi Telecom Company (STC) is the largest mobile operator in Saudi Arabia, with approximately 15.5 million subscribers as of June 2007 and 70 percent market share in the country.

Under the exclusive agreement, ATX will enable the distributors of STC's prepaid telecom products to convert their existing scratch card distribution process to electronic. ATX is facilitating STC's distributor network to convert over 10,000 merchants from selling scratch cards to electronic distribution of STC's prepaid products across Saudi Arabia and anticipates electronic processing to commence in early 2008.

"We are very pleased to sign an exclusive agreement with all of the distributors of Saudi Telecom, the largest telecom operator in the Middle East, to distribute their prepaid offerings electronically in Saudi Arabia," said Michael J. Brown, chairman and chief executive officer, Euronet Worldwide Inc. "According to company estimates, currently, approximately 45 million STC prepaid scratch cards are sold per month in Saudi Arabia making it a very attractive market for a world class prepaid processor such as Euronet. The distributors of STC can now offer our convenient electronic prepaid solution to their retailers and realize significant cost savings."

Saudi Arabia is one of the fastest-growing mobile markets in the Middle East with approximately 21.5 million subscribers at the end of the first quarter 2007. According to figures from the Communications and Information Technology Commission of Saudi Arabia, the penetration of mobile services in the country reached 89 percent of the population for the same period. Over the last five years, the market has undergone rapid mobile expansion with a compounded annual growth rate of 51 percent.

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