SOURCE: Digicel

May 07, 2008 15:27 ET

Digicel Wins Competitive Bid for Mobile License in Panama

Entry Into Market to Bring World-Class Mobile Services, Significant Investment and Job Creation

PANAMA CITY, PANAMA--(Marketwire - May 7, 2008) - Digicel Central America Holdings Limited, through its wholly owned subsidiary, Digicel (Panama) S.A., is pleased to announce that it has won a competitive bid process for a license to operate a GSM mobile network in Panama. The highly competitive auction took place on Wednesday, May 7th, with Digicel bidding US$86 million. Digicel's win for a mobile license in Panama is the latest milestone for the company's expansion efforts in Central America. Digicel currently operates in El Salvador and has plans to launch in Honduras later this year.

Significant investment in Panama is planned to build a world-class network and operation that is set to stimulate growth in the mobile market by increasing mobile penetration within the next five years from approximately 60 percent to 90 percent. Panama has a total population of more than 3,000,000 people.

Digicel also expects to contribute to the local Panamanian economy, employing approximately 300 people directly in its operations and leading to the indirect employment of 1000 people.

Speaking from Panama City today, Colm Delves, Digicel Group CEO, said, "Panama is a very exciting win for us and solidifies our presence in the region. Just as in Honduras and El Salvador, there is huge potential for growth in this mobile market and Digicel looks forward to becoming a strong competitor by delivering superior technology and through our passion for providing the best mobile phone service to customers."

April 2008 marked Digicel's one year anniversary of its launch in El Salvador, the Caribbean company's first operation in Central America. In its first 12 months, Digicel increased its initial investment to US$190 million and now provides more than 95% population coverage to reach communities previously underserved by competitors.

Digicel Central America Holdings Limited is owned by Denis O'Brien, as is Digicel Group Limited and Digicel South Pacific Limited.

About Panama
Location: Central America, bordering both the Caribbean Sea and the
North Pacific Ocean, between Colombia and Costa Rica
Population: 3.3M
Telecommunications: Mobile penetration at approximately 60%, two
operators Movistar (Telefonica) and Cable & Wireless. America Móvil
also received a license.

ABOUT DIGICEL

After seven years of operation, 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 with more than six million customers. By offering innovative wireless services and community support, Digicel has become a leading brand in the Caribbean and has placed the region at the cutting-edge of wireless communications.

Digicel is incorporated in Bermuda and has operations in 23 markets, including Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, Curaçao, The Cayman Islands, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Jamaica, Martinique, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname Trinidad & Tobago and Turks & Caicos. Digicel also has a license in the British Virgin Islands and coverage in St. Martin and St. Barths.

Digicel Central America Ltd has a license in Honduras and is focused on expansion across the CA region.

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 and the Copa de Naciones, the Caribbean and Central American qualifiers to the CONCACAF Gold Cup. For more information on Digicel, please visit www.digicelgroup.com.

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