SOURCE: Digicel

September 21, 2006 08:30 ET

Digicel to Acquire El Salvador Mobile Operator and Mobile Telecommunications License in Guatemala

Pending Acquisition of Digicel Holdings Limited Marks Pan Caribbean Company's Expansion Into Central America

KINGSTON, JAMAICA -- (MARKET WIRE) -- September 21, 2006 -- Digicel, the fastest-growing mobile telecommunications operator in the Caribbean, today announced that it has entered into an agreement to acquire Digicel Holdings Limited (DHL), an entirely separate company that operates a GSM mobile telecommunications business in El Salvador by the same name, Digicel. DHL also has a mobile telecommunications license in Guatemala and currently employees 160 people through its Salvadoran subsidiary.

Subject to certain conditions, and expected to close shortly, the pending DHL acquisition will represent a significant milestone for Digicel, marking the company's first entry into the burgeoning Central American mobile telecommunications market. The acquisition will expand the company's existing Pan Caribbean GSM network, and increase its coverage to a population of more than 22 million people.

"Our entry into the Central American market will be an exciting new phase in Digicel's growth and we look forward to welcoming Digicel Holdings Limited and the El Salvador staff and customers into the Digicel family," said Colm Delves, Digicel Group CEO. "At the same time, we also look forward to our imminent entry into the South American markets of Guyana and Suriname and taking significant steps forward in the roll-out of a seamless regional telecommunications network."

Digicel is known for its speed to market and innovative marketing initiatives, as well as introducing a dynamic portfolio of mobile services and product offerings in all markets in which it operates. With investments in the region at over US$1.2 billion, Digicel has successfully challenged U.K. incumbent Cable & Wireless among others over the years. The company continues to rapidly increase its customer base by connecting with consumers through its value-added offerings and exciting brand.

El Salvador has one of the most open telecommunications markets in Central America following the privatization and liberalization of the sector in 1998. Mobile penetration is currently estimated at approximately 30 percent and the sector continues to enjoy sustained growth with mobile phones overtaking fixed lines service in 2002.

ABOUT EL SALVADOR
Geography: Central America
Population: Close to 7 million people
Language: Spanish & English
Mobile Penetration: Approximately 30%
Telecommunications: One fixed operator and five mobile operators (including
Digicel)
ABOUT DIGICEL

Since its launch in 2001, Digicel has become the fastest-growing wireless telecommunications operator in the Caribbean. After five years, Digicel is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services, and state-of-the-art handsets. It is the largest GSM operator in the region.

Digicel is incorporated in Bermuda and has operations in twenty markets, including Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, Curaçao, The Cayman Islands, Dominica, French Guiana, Grenada, Guadeloupe, Haiti, Jamaica, Martinique, St. Kitts & Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad & Tobago & Turks & Caicos. Digicel also has coverage in St. Martin and St. Barths and expects further significant growth.

The company is the lead sponsor of Caribbean sports teams including the West Indies Cricket Team, Special Olympics teams across the Caribbean and is title sponsor of the Digicel Caribbean Football Union Cup, which involves over 30 Caribbean countries and is an important qualifier towards the CONCACAF Gold Cup.

For more information, visit www.digicelgroup.com.

Contact Information

  • Contact:
    Emma Hynes
    Public Relations Manager
    Digicel
    +1 (876) 881 8421 (Jamaica)

    Dacrie Brooks
    Cohn & Wolfe for Digicel
    +1 (212) 798 9804 (New York)