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WELCOME!

Amitelo welcomes you to the first of our quarterly newsletters, in which you will find all of the latest Amitelo

projects and undertakings. The management of Amitelo AG hopes you will find this newsletter informative.

Introduction by Mr Khaled Akid

CEO

The finalisation of 2005 for

AMITELO was crucial for the

fundamental expansion of the

Group, the organic growth and

the consolidation of the multiple

business fields and divisions

stood in the foreground for the

first half-year of 2006. We could

confirm very lucrative orders and

thus our position, in particular in

Africa, and continue development

in a structured and rapid manner.

The management created the

foundation stone for further

growth of the business. Crucial

strategic steps and conclusions

defined the first six months of

2006.

The submitted half yearly figures

impressively demonstrate the

rapid growth of AMITELO AG:

This means that, the gross

income of the whole financial year

2005, was exceeded in the first

half-year of 2006, amounting to

euro 22.5 million.

The comparison of the growth

compared to the first half-year of

2005 represents an increase for

the period of plus 350%. That is a

very good result, which we are

very happy to report to our

investors.

I would hereby like to welcome

you to the first quarterly

newsletter of the Amitelo Group.

Every edition will feature one of

the subsidiaries in the Group, this

month it is the turn of Amitelo

Wireless

With very best regards,

Khaled Akid

CEO

Mr Gora Diaw

In August Mr Gora Diaw joined the

Board of Directors of Amitelo AG. Mr

Diaw is wholly responsible for matters

AMITELO

SEPTEMBER 2006

The place to read all the latest news, facts and figures. Welcome to the Amitelo quarterly magazine, enjoy!

Amitelo sets records

and scales new

heights in 2006

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An interview with Mr Ricardo

Puerto, MD Amitelo Wireless SL.

Conducted by Tim Skilton

TS: Good morning Ricardo. RP: Good morning.

TS: How are things progressing at Amitelo Wireless (AW), we have witnessed some great news in the last months!

RP: Everything is on track and allowing for some minor setbacks, which can of course be expected with a project such as this, AW will complete the backbone within the projected time frame. TS:Perhaps you could tell everyone exactly what the project entails? RP: Of course, the first phase from Malaga to Mijas, covers some 300’000 potential business and residential customers, being one of the most highly populated areas in the whole of the Malaga province. The Malaga-Mijas and the Mijas-Marbella phases of the backbone are perhaps the most financially important, covering the most densely populated areas on the Costa del Sol. The Mijas-Marbella phase of the backbone, completed in June gave coverage to a further 220’000 potential business and residential clients. Many of the developments, businesses and individual homeowners are currently only able to access Internet and telephony services via GSM and GPRS. Therefore a high percentage uptake is being

experienced for the services on offer. With competitive installation prices from one hundred and forty nine euros to five hundred and ninety nine euros for equipment installation, dependent on circumstances, an average installation price is three hundred and seventy five euros. The monthly revenues for the flat rate Amitelo Internet and telephony services of forty five euros per customer is also very competitive.

This represents a significant step in the procurement of further clients in the region of the Costa del Sol in Southern Spain for the existing implemented Internet and VoIP services of the Amitelo Group. The IP technology integrates modern speech and data services and permits the use of continually developing Amitelo end customer products, such as VoIP services and ADSL broadband services. Customers are currently using GSM and GPRS technologies in these areas. Amitelo has also completed its own ‘hotspot’ technology, available to any customer requiring broadband services under the coverage of the Amitelo network on a pre-payment basis. The Amitelo ‘hotspot’ technology differs from other offerings in that pre-paid credit can be used either for conventional Internet usage or for VoIP telephony calls. Typical usage rates for the service are €

18.00 per day for the broadband service and VoIP calling related to consumption and destination.

BACKBONE

Expansion Underway

This backbone will finally cover

the entire coastal area from

Gibraltar in the West to Motril

in the East, providing Internet

and VoIP services to a

coverage area containing a

total of 1.4 million potential

business and residential

customers. Of these only five

hundred thousand currently

possess telephone services

and one hundred thousand

Ricardo Puerto

Speaks!

(3)

Amitelo Wireless is also underway with a contract from the local council of the region to provide broadband services to two industrial parks of approximately 100 industrial units each, totalling 200 installations with average installation prices per unit of € 590.00 for business customers with monthly recurring revenues of € 45.00-€ 120.00 per business customer, dependent on consumption and required services. Also under this contract are the provision of broadband and associated services to the local council itself, its main offices and remote locations.

TS: Impressive! So what plans for further expansion?

RP: The coverage area of the Wireless Backbone has gradually increased. At the end of 2006 the commencement of a Wireless Backbone on the North coast of Spain is planned to form an extension of the Wireless net to the Costa del Sol. In Africa, planning is underway for similar installations, in particular in Togo, Senegal, Benin and the Ivory Coast. The Company supports Amitelo Afrique SA with high-quality VoIP and wireless technologies.

TS: What are your current resource levels?

RP: Amitelo Wireless SL employs at present three telecommunications engineers as well as ten technicians. In the course of years 2006-2007 these are to be supplemented with further

engineers and technicians as required by

the expanding business.

TS: Are there any other project or products you can disclose to us here? RP: Of course there is the work we have undertaken to develop the low-cost IPBX for Africa, working closely with Amitelo Technology (AT) and Amitelo Afrique (AA), we have created a great product and one that is one of, if not the most competitive on the market in terms of pricing and functionality.

WIRELESS

Technical innovations

Technical innovations take time and hard work to realise. Wireless point to point and wide area networks require thorough testing before deployment, this is why Amitelo Wireless dedi-cates over 75% of it’s available area to testing facilities in the Malaga location.

We need a lot

of room for

testing!

The IPBX in testing at AW Twelve extensions in operation

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AMITELO WIRELESS S.L. Business Development 2006

TS: So, Ricardo, we’ve talked about the existing undertakings, what’s the perspective for the remainder of 2006 going into 2007 for AW?

RP: Well the local scope is to continue with the installation of the repeater antenna in new points, mountain of Santo Pitar, valley of Guadalhorce and of course in the houses and businesses of individuals receiving the service. From those strategic points and according the study made in the zone of maximum con- struction, we continue with a list of Promoters and Con-structors who are waiting for our coverage in the zones they are developing. This is a direct service to construction sites with the agreement that after fin- ishing their buildings, the clients will be connected directly to our services, prior to this we sign a pre- contract with the promoter. (At this point there are 8000 to 10000 potential clients)

Hotel Services, we can already count with a list of 40 interested Hotels in the zone, the service includes connection to Internet and VoIP, wireless and broad band, also to provide the client with an additional management tools service for the warehousing, accounting, control and tariffs via IP. Also enabling for the clients an additional service of maintenance and sales of required computer science equipment. We are already making a study for a Hotel with 226 rooms with the collaboration of a local

engineering company. We are about to gather the plans of other 6 Hotels. Busy times ahead.

TS: Fantastic! That sounds great for local expansion, do you have plans for farther afield, Nationally and Internationally?

RP: Of course! In the national scope, we are in contact with Mr. Abel Vazquez, computer science chief of the Bank La Caixa and the Real Estate Servihabitat of La Caixa to supply our interconnection services to their offices and to their new developments. We have contact with national Promoters and Constructors such as Acciona, to which we have sent our presentation and we are

“Busy times

ahead”

AMITELO WIRELESS

GLOBAL PERSPECTIVE

BANKS

MAJOR

COMPANIES

HOTELS

GOVERNMENTS

Contacts La Caixa (Servihabitat) Banco Santander Contacts Acciona CIRSA Group Ubifone ACER Contacts Moevenpick Hilton Millenium soft AM system Contacts Panama, Dominican Republic China

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in attendance for a meeting in their main offices in Madrid. We have contact with the hotel chain Hilton and Mövenpick to sign agreements. We have contacted with Software companies for hotel management such as Millenium Soft, A.M. system and Global SIP Shop on which we can count on for support with programs regarding Hotel management and Call Shops. We are testing and finalising a hotspot Web Page for the Ports with the purpose of providing services to the boat owners that are berthed or if they are within coastal coverage. We are providing the IP monitoring of a Casino in Marbella, property of Mr. Eduardo Guillén who is a partner of the CIRSA Group. In the international scope, we have contacts with the governments of Panama, Dominican Republic, China, Thailand and Bulgaria the most interested for us on pursuing their projects are Dominican Republic and Bulgaria. The Panama’s ambassador is also waiting for further discussions in September. We are considering the possibility of doing business with Ubifone, Leader Company in VoIP. We are having interactive meetings with Mr. Juan Pablo Neri Spiller in Uruguay. In the next weeks we will have several training courses with a leader company in control of digital tracks in France. Our purpose is to take the distribution to Spain. We are in contact with the company ACER for the distribution of their products in Africa with the possibility of creating a Call Centre in Africa. We are in contact with PDVSA (Venezuela S.A. Oil) to study the possibility of interconnecting their oil platforms.

TS: Ricardo, it’s been great to talk to you, thank you for sharing the current undertakings and the

perspective for Amitelo Wireless for the remainder of 2006 into 2007. It sounds like you have a very busy time ahead and I hope you will be able to cope with the workload!

RP: Tim, it’s been a pleasure and you are right, there is a lot to be done, however because of the synergies that exist within the Group, I am able to call upon a resource that will assist me in all aspects of my undertakings. With the support of the other Group members I am fully confident of achieving our objectives in 2006.

Other Subsidiaries

With that message we leave the subsidiary Amitelo Wireless and continue on our journey to show you some of the other members of the Amitelo Group. As Mr Akid said in his introduction to this magazine, each magazine will feature a different subsidiary and will go in-depth into the current operations and undertakings and future plans.

Perhaps at this point I should take the time to introduce myself, my name is Tim Skilton and I shall be producing and editing the Amitelo magazine, assisted by Miss Denice Ortega and Miss Marianne Jensen.

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Based in Hamburg with a

technical presence in Frankfurt

Amitelo Deutschland GmbH is an international telecommunications company, focusing on the operation of direct routes to hard-to-reach countries in Asia, the Middle East and Eastern Europe. Amitelo Deutschland GmbH is headquartered in the vibrant city of Hamburg with a branch office in Frankfurt. 

The company is led by Andree Gesekus as Managing Director; he has more than 12 years experience in the telecom sector and strong skills in sales and commercial tasks. A second important part is in the responsibility of Thorsten Weber as Director. His strengths are in business development combined with his comprehensive understanding and knowledge of the IT/ VoIP market and technologies. The company is staffed by 6 employees.

The current business is focussed on international voice interconnects, with preferred PTT´s, Mobile Operators and Retail Carriers. This is realised on VoIP (Voice over Internet Protocol) with more than 90% of our customers and suppliers. Based on these relationships Amitelo Deutschland specifically delivers voice termination via direct routes to Asia, the Middle East and Eastern Europe. Furthermore new important connections in Africa will be added together with Amitelo Afrique.

Amitelo Deutschland also provides local and international value added Services (0800/0900/Local Access/Shared Cost), so that the clients can order in and outbound services from one supplier. To expand and optimise the business Amitelo Deutschland has decided to use the latest VoIP switch technology (Mera) together with the powerful telecom management software (Captura), which enables the company to handle and process more destinations and customers with the same number of staff.

Furthermore this investment will benefit other entities of the Amitelo group, such as Amitelo Carrier Spain and Amitelo Afrique, because the new system will be used as a central traffic exchange for the connected group members. The

centralisation on one Hub will result not only in a higher operational efficiency, but also in rate cost savings and a significant reduction of the overall group investment. Projects:

Amitelo Deutschland GmbH is negotiating with Cape Verde authorities regarding a GSM license with an international gateway on Cape Verde Islands

Amitelo Deutschland GmbH is currently developing a retail product for a mobile access enhanced directory service (EDA) with switch board functionality and telephone cost saving model that can be deployed across Europe and other countries quickly.

AMITELO

DEUTSCHLAND

2006-2007

Currently we are evaluating the conditions to become a MVNO (Mobile Virtual Network Operator) with the intention to collect voice minutes via a mobile network and to deliver the calls to our own direct routes. Amitelo GmbH will develop and finish the projects before the end of 2006 with a view to marketing at the begin-ning of 2007.

MD

Andre Gesekus

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HEADLINES

ALL CENTRAL AFRICAN REPUBLIC (CAR) OPERATORS CONNECTED TO THE CAR IGW PUT IN PLACE BY TEL-SOFT

Core business:

African government consultancy International Gateway services Present deal:

The International Gateway (IGW) put in place by Telsoft started its operations at the end of April 2006. The contract was signed in October 2005 after a RFP won by Telsoft against International

competitors.

After 4 months of tests, the IGW will receive, as a first step, all CAR incoming traffic starting September 18. The increase of the CAR international termination will be increased from October 1st. Four operators are currently present in CAR: SOCATEL, TELECEL, ACELL, NATION LINK.

Business development 2007:

Develop services offered in the CAR IGW and increase traffic volumes

Prepaid services for Socatel the CAR national operator

Rural telephony CAR PROJECT

Other African state business develop-ment opportunities.

TELSOFT

Governmental Relationships

Telsoft’s Directors Thierry Jannot and David Sherman have taken considerable time and trouble to build up relationships with various African governmental bodies, giving them the confidence to employ Telsoft to provide telephony solutions for their respective African States

The Telsoft

team in CAR

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Zakotel the Austrian IP solution

provider

ZaKoTel iPBX is a complete and innova-tive Voice over IP telephone system; it runs under the operating system Linux and is completely pre-configured, deliv-ered and installed. Voice calls and faxes are enabled over an existing data network and/ or over Internet transfer (Voice over IP). The equipment controls all usual VoIP minutes and can be combined with exist-ing telephone systems. With the inte-grated software new services and exten-sions can be furnished easily and fast. Provision of up to 50 extensions Support for all usual SIP and IAX2-Terminals

“3G-IVR”, a hosted IVR and Call Centre platform. This platform is built for any size of business and demonstrates the next generation of IVR and Call Centre solu-tions. “3G-IVR” can be used with tradi-tional telephony lines (PSTN) as well as VOIP. The integration of VOIP makes it possible to offer services in multiple loca-tions around the world. The big advan-tage of a hosted system is to offer new features immediately and online for all customers. With “3G-IVR” everyone who wishes to start a Call Centre, can use “3G-IVR” without the need of an initial investment and can use the same func-tionality as in the purchase of a platform for 100.000 or more Euros. Traditional IVR services are pre installed and offer a huge range of services to the customer.

DESK SMS is a development of ZaKoTel GmbH with which customers have the possibility to distribute from the PC, SMS messages to their customers for advertising or information purposes, with favourable dispatch conditions. All exist-ing customer data from Outlook, Outlook Express or Lotus Notes can be imported. ZaKoTel VPN is a complete solution for the secure and simple installation of Vir-tual Private Networks.

In view of the continuous tendency to-wards mobilisation of tasks and the in-creasing availability of Broadband Inter-net access over wireless and cabled networks, the requirement for the avail-ability of secure access to the company Intranet continues to increase. This re-quirement also exists on the company VoIP network.

In order to utilise these developments, regarding the secure connection of busi-ness and branch offices to central serv-ices is made possible by the ZaKoTel VPN, like for example E-Mail or internal information platforms.

ZaKoTel VPN offers a secure and simple way to grant mobile employees safe ac-cess to company networks for data and telephone services, additionally to eco-nomically connect branch offices with small expenditure to an existing infra-structure.

ZAKOTEL

IP research & development

Call centre solution IPBX

VPN Desk SMS

Secure IP systems

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Great synergies are already

evident within the Amitelo group

following the acquisition

01066 GmbH and 01059 GmbH are operational in Germany, with a customer base of approximately 100 000

customers, who regularly use the call-by-call service.

The focus is end-user business in the international call market with a large target group and the highest possible margins. As the market leader for call shops in Germany and a successful calling card provider, the call-by-call business fits well within this focus. Since the market in Germany was liberalised, call-by-call has been an established service that is a popular choice to reduce the costs of international calls by dialling the relevant network operator’s individual code number. According to a 2005 survey carried out by DIALOG Consult and VATM, it is estimated that call-by-call accounted for 16.2 million customers on the overall market in 2005. This corresponds to 62.6% of the entire German telecommunications market for alternative providers, excluding the monopolist Deutsche Telekom AG. 73 % of the call-by-call telephone conversations channelled via the two providers 01066 and 01059 are international calls. The business operations are excellently organised, i.e. with lean structures and a cost-efficient

operational organisation. The two network codes are established on the market and are already well known to end-users, so that AMITELO can continue and expand the business profitably without high marketing expenditure. The new network that has been acquired has been optimised at the technological level and will supplement the existing

AMITELO network capacities following the migration process. A loss of existing customers cannot be expected because of the high-quality network performance. The experienced management team headed by CEO Kai Becker has had an average of more than 8 years

of experience in the telecommunications industry. The team has managed both companies competently and has structured them to generate further growth.

It is planned to introduce additional call-by-call numbers for customised tariffs. The first additional number has just been allocated by the official German network agency and the launch of this network code is being prepared. Another option is the development and provision of new products and services above and beyond the core business. They can, for example, be such services as pre-selection, Internet-by-Call, Voice over Internet Protocol (VoIP) or value-added services. AMITELO is considering becoming a mobile virtual network operator (MVNO) in addition to the landline phone operations.

“MAXCALL”

01066 and 01059

The subsidiary Median Telecom GmbH, which is also based in Germany, operating more than 300 calls shops and supplying telephone cards alongside carry-ing out wholesale transactions with other telephone companies, is benefitting from this take over with immediate effect. Median has already placed orders with a total value of over € 4 million with the newly acquired companies.

Switching

equipment in

(10)

Success Technology systems

integrator

Core business

Network Architectures

• Network Infrastructure LAN, MAN et WAN,

• Voice and Data Convergence (VoIP),

• Wireless LAN & WAN Solutions

• Vsat Solutions

• Call Centers Security & Quality of service

• Information System Security Firewall, Encryption, authentifi-cation Solutions, etc.

• Content Filtering Solutions

• IDS (Intrusion Detection System)

• Quality of services (QoS), Consulting

• Strategic Information System Plan

• Audit Information Systems (LAN, WAN, Security, ..)

• Studies and Consulting,

• Project Management

• Maintenance and  Support,

• Specific Training.

Implemented projects

• Voice and data wireless network for Lydec (Lyonnaise des Eaux in Casablanca) and Sanofi-Synthelabo

• Secured wireless network for Fes and Meknes Universities

• Consulting for Societe Generale Marocaine de Banque

• Encrypted data transmission solution for Ernst&Young

• Videoconference for Gillette

Success Technology was the first company in Morocco to offer VoIP solution at the beginning of 2002 (Press release Economie et Entreprise April 2002)

It was initiating VoIP solutions to be implemented with Sanofi-Synthélabo one of the biggest pharmaceutical laboratory.

SUCCESS

Business Development

The intended income for the

period of January 2006 to

December 2008 (value in

million Moroccan Dirhams)

1

~ 11 Dirhams.

2006-15’130’00

2007-21’182’00

2008-29’655’00

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Working with Governments and

Ministries, Amitelo SA is forging

African links for the Group.

Core Business

On June 2006, the company was created to be the operational headquarters of Amitelo Group in EMEA area. This is the main function of Amitelo SA based in Casablanca.

The objective is to support entities of all Amitelo companies in several domains: human resources, quality and organisation, finance, marketing and c o m m u n i c a t i o n , b u s i n e s s a n d development, technology, and maybe logistics…

The company is also able to answer calls for tender in important and governmental projects in the telecom and VoIP fields. The services are the following:

Integration of information and communi-cation technologies.

Carrier Infrastructures

VoIP, data com and technologies (Billing, IPBX,……)

Participation in the development of tele-communication infrastructures of opera-tors and governments.

Call Shops 3rd generation

AMITELO installs the first of 5,000 call shops in Morocco.

In conjunction with a strategic meeting for an infrastructure project in Morocco, held on 22.06.06, the plan for the

techni-cal realisation was defined. Subsequent to the official meeting with the Moroccan Prime Minister, Driss Jettou and Hassan Bernoussi, Director of External Invest-ment, AMITELO has commenced the rollout of the first phase of what will be-come the installation of five thousand VoIP-Call Shops in Morocco over the next three years with a overall budget of EUR 125,000,000.

The launch includes new Voice-over-Internet-Protocol (VoIP) based services and the set-up of 5,000 new call shops in a time frame of three years, equipped with state-of-the-art VoIP-technology. The budget, approved by the government for this grant scheme for qualified persons is EUR 25,000 per call shop, resulting in a total amount of EUR 125,000,000 for the overall budget. The call shop equipment includes the technical environment, phones, computers and other hardware such as printers, as well as the software for the billing system and the furniture for the phone booths and the shop itself. For this 3rd generation call shop-solution the Group member Median Telecom GmbH´s VoIP-call shop-solution, currently deployed in Germany (by Median) and Spain (by Sunline Communications SL, another Group member), will be implemented. The set-up of the call shops of this type has been tailored to align with the "Mon Travail" scheme of the Moroccan Government by which qualifying individuals are able to access grant money to commence in

self-AMITELO SA

Governmental Interface

Amitelo SA is laying down the foundations for co-operation with

Governments and Ministers in the EMEA region. Providing confidence to work with Amitelo to provide partnering products and services, aligned with policy implementation in Africa.

Ministerial

meeting Skhirat

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employment. This is a new concept in Morocco, a country of 33.25 million inhabitants, of which 63.4% are in the 15-64 year age range. Morocco currently has some 3.5 million inhabitants using the Internet.

This franchise concept from AMITELO is a well-tried business model, which has proven suitable, to commence and develop successful self-employment. Regarding this, AMITELO expects a huge demand for its 3rd-Generation-Call Shop-Solution in Morocco. This project represents a direct synergy between Group members Median GmbH and Success Technology SA, deploying a 3rd-Generation call shop solution, particularly developed for Africa, in which both cultures and their differences are considered in the case of the design and deviations within the available infrastructure. The first call shop in Africa is already installed and is operational in Senegal for demonstration purposes. AMITELO is also planning the modernisation of existing call shops with the governments of certain partnering African countries. This is in accordance with Amitelo´s focus on the emerging markets, some of which are not deregulated and some of which are preparing for deregulation regarding VoIP.

Due to the upcoming liberalisation of the markets the competition will move into Africa. With each step in the technical direction of VoIP the former incumbents are designing their modernised services to be ready for the future. This means, they are providing a competitive offering, which increases the market entry barriers for new competitors.

Concepts like the 3rd generation-call Shops, completely based on VoIP-technology and which are offering, besides plain telephony and Internet access, additional services like e learning and e-government, are forward-looking and will remain against new competition in the market. E-government is an offer in the administrative authority field, providing forms to be downloaded and filled in online for diverse uses such as travel and relocation needs, application f o r s p o n s o r i n g o r g o ve r n m e n t information.

AMITELO feels extremely positive after the successful implementation of the first series of call shops is complete, that further programs for modernisation of the telecommunications infrastructure in Morocco can be realised in co-operation with the government. AMITELO is proceeding on the assumption that the positive resonance this common government project gains in the neighbouring countries will be a signal for other projects to develop in the

Senegal at the end of September in order to negotiate similar new projects.

On June 2006 was the launching of Amitelo headquarters for EMEA area in Casablanca, Morocco. Amitelo SA was the co-ordinator for this event organisation.

All the Amitelo Board members and managers, coming from all over the world, were brought together, in the same place to reveal their dreams and vision. The following Ministers participated in this event:

- Minister of telecommunication of the Republic of Senegal, Mr. Joseph Ndong

- Minister of employment and continuing education of the K i n g d o m o f M o r o c c o , Mustapha Mansouri

- Delegated Minister of the Prime Minister, responsible of economic and general affairs and telecommunication of the Kingdom of Morocco, Rachid Talbi El Alami

- The chief of cabinet of the Ministry of Industry, Commerce and of the 'Mise-à-Niveau’ of the Economy, Karim Taghi Their presence already showed a high consideration of the Moroccan business and capacities as well as the importance for their countries and the whole African continent.

The idea of implementing the latest evolu-tion of telecommunicaevolu-tion in Africa brought the people together. But this high technology Amitelo is providing will en-courage as well economic and social de-velopment and enable Africa to play an important role in globalisation.

Our declared intention can be clearly communicated: Proximity and intercon-nection of Africa and the world – what Amitelo is calling e-proximity.

Business Development 2006

- Candidature for a partnership with the Moroccan government for installation and management of telecommunications in largest Offshore zone in Morocco. 

- Candidature for the One Gov. project. Launched by the Moroccan government; It consists in inter-connecting all the ad-ministrations of the country to lead to a single gate.

- Candidature for delivery a Wimax net-work for An operator in Morocco, in

part-- Candidature for delivery a solution to interconnect LANs & SANs for an opera-tor in Morocco, in partnership with a manufacturer.

Business Plan 2007

- To widen our points of interconnection with our partners operators. 

- To take part in the great projects of de-velopment and the integration of the NTIC on the level of the Moroccan administra-tions.

- To take part in the development of the infrastructures and services of operators (CDMA, ADSL, DWDM,…) in EMEA area.

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Ami Telecom at the forefront of IP

software solutions.

Core Business

Amitelecom, a 100% subsidiary of Amitelo group, is a company specialised in call shop and billing solutions intended for operators and for individuals.

Amitelecom provides solutions and services specialised in

telecommunications for operators of telephone cards and services, operating on call shops, alternate operators, and the internet access’ providers. Our systems call shops enable

communications with much lower tariffs than the traditional systems. Also, the installation is simple and fast and our services can guarantee the

telemaintenance operations. Present deals

Amitelo is in the process of preparing, in collaboration with Success Technologies, a solution for the call shops of the Moroccan historical operator Maroc Telecom.

Business Perspectives 2007

Amitelecom is getting ready to make a powerful contribution in the field of IP telephony in collaboration with all the members of Amitelo group.

The following products will be launched by 2007 by Amitelecom:

- Amicallshop Pro: A solution destined for IP operators worldwide.

- Amicallshop personal: a solution destined for all individual need to create his own call shop for free! - Amicallshop soft: A solution

destined for all the

entrepreneurs who want to start their business with the minimum costs. (amicallshop software) - Amicard: Calling card Solutions

for operators of telephone card services.

- Bill4Tel: The new version of Bill4Tel will be a global solution for all the VOIP systems

AMI-TELECOM

Offices

Amitelecom has it’s main office in Ceuta and has affiliate offices in both Tangier and Casablanca. The call centre for cus-tomer service and support is located in Tangier, employing multi-lingual staff.

Amitelecom

team

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Direct Routes, termination and Billing for IP wholesale.

Voice over Ip business:

Amitelo Carrier was founded in the beginning of 2006 and its core business is to

exchange wholesale and retail traffic and to market

the capacity of Amitelo’s direct routes to many

countries worldwide.

Amitelo Carrier is a provider to SAHTI

Group, which owns over 1500 call shops in

Spain. We are also interconnected with dif-

ferent historical operators like France

Tele-com, Telecom New Zealand, Maroc Tele-

com, Ono (Auna), Ibasis, Teleglobe and

several other wholesale carriers.

Amitelo Carrier has commenced work with

several Franchisees in Marbella (Spain)

directly with Amitelo Group, which owns

over 10 call shops all over the Costa del Sol

in Spain delivering the entire A-Z solution.

Wholesale VoIP

minutes

Technical presence

Amitelo Carrier is currently technically present in Malaga/ Madrid Spain. Frankfurt/ Hamburg Germany and has POPs in five West African states.

AMITELO CARRIER

BUSINESS DEVELOPMENT

2006

2007

SOUTH AMERICA

MIDDLE EAST

Morocco

In collaboration with Maroc Tele-com the Amitelo Group is develop-ing in 2006, with the support of Amitelo Carrier the implementation of call shops all over

Africa It is planned to build wireless Networks in Africa, we have just commenced a complete range of services in Sene-gal. Amitelo Afri-que is Carrier routes Amitelo Carrier is actively pursuing business in South America, with ongoing negotiations for direct routes in Colombia, Panama, Carrier routes

The middle East is also an emerging market for Amitelo with negotiations underway in Iran, Iraq and now Lebanon

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We are signing strategic alliances

with large Spanish Corporations.

Our product Portfolio includes most

services a regular business is looking

for such as : Telephony and Internet

Services, Banking Products,

Insurance and Security Systems.

At the moment we are working on the

following deals:

Nationwide agreement with

Securitas Direct

City Council of Ojen

Proconsa Development (1100 new

homes)

Business Perspectives for 2007 are

to become “ a known Company “ for

good performance and excellent

customer service.

To expand our sales team in order to

achieve 4000 satisfied customers by

the end of the year.

Start franchising Suntele agressively

in Spain and into South America.

Sunline Communications SL the

VoIP integrator in Spain

Sunline is working on the franchising

model for Call Shops SUNTELE®.

With a unique Portfolio of products

we are expanding the network of

Sunline’s own shops, now 10 with a

further 5 to open by the end of 2006.

We are working to achieve our

biggest goal: Call shops that run on

a new Voip System,with full

customer satisfaction and QOS. This

involves close collaboration with

Amitelo Wireless for installation and

maintenance of the systems and

Amitelo Carrier for competitive

termination rates and QOS for

calling.

We are also the sales force for

Spain. With a new sales concept

“Amitelo Partner”. This concept will

serve as a franchising tool for the

model we are developing in the

Malaga Province.

Our business philosophy is to

become the “Partner” of

corporations and customers that will

contract our services.

SUNLINE

Employee of the Year

Our employee of the year is Yessenia Anchapaxi, she has been with the company for 3 years performing excellent work, last week on Friday,we took her from our headquarters in Malaga to Hospital Costa de Sol were she delivered a beautiful baby girl.

This way for

cheap VoIP

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Median Telecom, Multiple IP Services

MEDIAN Telecom has signed a contractual agreement with a German army supply company. The contract comprises the supply of special telephone cards which will enable German army employees to make private telephone calls. The contract has been drawn up because employees of the German army are no longer permitted to make private telephone calls at the expense of the army. In future, it will only be possible to make private telephone calls from the place of work or service using special calling cards. These telephone cards will be offered in the so-called soldier homes at the German army barracks.

In Germany there are some 380 soldier homes (kiosks

linked to the canteens where army staff members can purchase every-day products). These special points of sale are supplied by only two companies in equal measure. MEDIAN Telecom has succeeded in signing a contract with one of these army supply companies to provide and supply the necessary telephone

cards and accompanying PINs. In February MEDIAN will start to equip 190 points of sale with the necessary card terminals.

The MEDIAN call shops (known by their brand name as “Telecafés”) are to be gradually equipped with sports

betting terminals over the next few months;

terminals have already been installed in the first call shops. By June 2006, about 100 MEDIAN call shops are to offer their own terminals for sports betting. By the end of 2007, all franchisees and independent shops (currently altogether more than 330 call shops) are to be equipped with terminals. MEDIAN has successfully converted to VoIP the first of more than 330 locations have already been converted and

adjustment of all software systems to the new VoIP technology will lengthen the edge enjoyed by the market leader Median Telecom GmbH over the competition.

Median

goes from

strength to

strength

IP All rounder

Median provides Call shop solutions Pre-Paid cards

Resale of VoIP minutes Specialised web-based VoIP services

VoIP billing control for Pre-Paid services

An A-Z VoIP Company!

MEDIAN TELECOM

GMBH

SERVICES

CALL SHOPS

PRE-PAID CARD RE-SELLING

PREPAID-TV

Features VOIP based turnkey solution Phoneshop Package PBX based Features International Calling Cards Promotion Cards German Army Features Switchless Reselling with Median-margin-tool for profitable Card calculation Features click2dial and click4call a VOIP telephone service prepaid.tv , a web based sales

(17)

Amitelo Afrique, the centre of

busi-ness for Amitelo in West Africa

Amitelo has opened the first “Call Shop“ in Dakar, the capital of Senegal. The Call Shop provides other modern services such as e-learning and e-government in addition to telephony and Internet services. The Call Shop is an important milestone in the planned co-operation with the Senegal government for modernisation of the several thousand Call Shops in the country. The Call Shop in Dakar is in addition a prestigious project that is designed to convince the population about the benefits of the modern AMITELO technology.

The AMITELO Call Shop was brought into operation with the IP Call Shop

technology supplied by Median Telecom GmbH (a wholly-owned subsidiary of AMITELO AG) that has already proved to be effective elsewhere. Since all of the Median Telecom GmbH software was developed in-house, it was easy to adapt the user guidance facilities to French as the national language.

Call Shops in Africa and Western Europe are very different: it is often the case that Call Shops are the only way for their visitors to phone outside the country or to use the Internet. Far fewer than 10% of households have a telephone connection and only about 5% have Internet access. African Call Shops are therefore very busy and visitors can be sure that they will have to wait.

Senegal is on the west coast of Africa between Guinea-Bissau and Mauritania and has about 11 million inhabitants (situation in July 2005), about 58% of whom are less than 20 years old. The population has more than doubled in the last 20 years. Population growth is about 2.7% per year.

With “PAMECAS Mutuel“, AMITELO acquired at the end of last year an important financial service provider as customer. Having completed the plans for the network topology and technical equipment with VoIP-enabled

technology, the network establishment is now under way. The contract with a longer term of several years concerns the nationwide networking of the bank branches to establish a standard, forward-looking network infrastructure for data and speech communication. The first bank branches have already been successfully linked in the test phase to the new network. For Bank PAMECAS Mutuel, the migration to the VoIP level represents a significant improvement in communication. Until now, the bank had been using its own VPN data network, with speech being provided separately via the state telephone company Sonatel. In future, speech and data will be transported for the bank via one data cable – primarily via the internet.

Advantages for PAMECAS Mutuel: on

AFRIQUE

Mr Gora Diaw

Mr. Gora Diaw has more than 7 years experience in the field of VOIP tech-nology and is one of the pioneers of the development of this technology in West Africa.

His full understanding of IP technol-ogy and his knowledge of the market place in Africa, allows Mr. Diaw to integrate the wide range of Amitelo Solutions in the African market, work-ing with public and private operators as well as governmental bodies.

African

support from

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the economic side, a reduction in communication costs as telephone calls can be made between the branches free of charge. On the productive side, greater efficiency thanks to the new service features, such as conference calls. A very good reference example for the country. The focus of the AMITELO Group lies on VoIP technology and accompanying software solutions which – similar to this project from one source – are supplied by AMITELO Technology SL (Ceuta/Spain). A project of this kind reflects the AMITELO company purpose of establishing communication infrastructure in countries displaying a considerable undersupply. In addition, AMITELO Afrique SA. has just signed a wholesale contract with

“SOCIETE DES TELECOMMUNICATIONS DU MALI“ (Sotelma), Mali’s state

telephone company. Here AMITELO will operate as partner for international speech termination.

Amitelo Afrique has signed a

co-operation agreement with “SOCIETE DES TELECOMMUNICATIONS DU

MALI“ (Sotelma), the state-owned telephone company in Mali. The aim of the co-operation is to provide the inhabitants of Mali with modern voice over IP (VoIP) and Internet services. For AMITELO Afrique SA., the contract is another milestone in opening up the region of West Africa. AMITELO Afrique is already operating in Senegal, the

neighbouring country.

Mali is a country that is of particular importance to AMITELO because of its strategic location. The republic of Mali shares direct borders with Algeria, Burkina Faso, Guinea, Ivory Coast, Mauritania, Niger and Senegal. The co-operation with Sotelma also includes hubbing operations into the countries neighbouring Mali. Mali acts as an important node in this context, forwarding the incoming voice and data traffic from Europe to the neighbouring countries via the Sotelma network – AMITELO will be supplying the technology.

In January 2006, an urgent requirement in the African states in which Amitelo Afri-que is present was identified. The re-quirement was for a low cost, low main-tenance IPBX product for the African states. During the course of the first quar-ter of 2006, the project to produce this product was defined and the project placed into the Amitelo Group for analy-sis. It was assessed and decided that the

Amitelo Wireless (Spain). Amitelo Tech-nology would take responsibility for the programming and software, Amitelo Wire-less for the hardware and client telephony interface.

The impressive features of the IPBX in-clude:

• A very small footprint, the hardware is only 150 (l) x 150 (w) x 50 mm deep mak-ing it extremely easy to install and very discreet within an office, call centre or call shop environment.

• Simple pre-configuration prior to instal-lation.

• Low cost monthly maintenance con-tracts.

• Fully interchangeable interfaces to ac-commodate all digital and analogue con-nection requirements.

• A good range of included feature mod-ules including music on hold, call diver-sion, call waiting, voice mail, advertising on hold and expansion up to 300 exten-sions.

• An expected retail sale price of €

399.00, easily the best value compara-tively featured IPBX on the market. This IPBX is to become part of the immi-nent 3rd generation call shop roll out 2006-2007 in addition to the potential for African business installations identified by Amitelo Afrique.

Amitelo Afrique is currently undertaking projects under signed contracts with Governments, incumbent PTTS and or-ganisations in Togo, Senegal, Mali, Burk-ina Faso, Gambia, Central African Repub-lic and Morocco. With an approximate total population of these countries of in excess of 100 million, statistics and mar-ket research shows that between 50 and 60% of the population of each country is in the 15-64 years age range. The total number of current Internet users, accord-ing to Amitelo market research is in ex-cess of 4 million inhabitants. If Amitelo takes 0.5% of these current Internet us-ers as candidates for Amitelo IPBX VoIP enabled telephony, an expected sales figure for the IPBX per annum could con-servatively be placed at 20’000 units. Full scale production of these units will be undertaken in Africa as part of Amitelo’s “Made in Africa” scheme.

Interconnections: Burkina:

Contract signed for 4 E1 later 8 E1 Sierra Leone:

Contract signed for 6 E1

 Gambia:

Contact under negotiation for 4 E1

 

Guinée Bissau :

Require the same services from Amitelo as Burkhina

Senegal:

Signed contract with Sotelma, described elsewhere in this document.

Togo :

Contract signed for 4 E1

For termination of Togo cellular traffic Breaking News:

Amitelo Afrique SA has signed a contract with the Senegalise “Loterie Nationnale” (www.lonase.sn) a contract to connect all of the distribution points for the national Lottery in Senegal via a VoIP wireless distribution.

Amitelo Afrique SA has signed a contract to supply network and computer equip-ment to l'ASECNA de Dakar

(19)

Amitelo Canada

Core Business

Multi-Sector Billing System Platform

TelcoMasterTM Software

BSSC is the developer and licensor of the TelcoMasterTM Software

(www.telcomaster.com) and through its subsidiaries spent 4 years and over $1.5 million dollars designing a state of this art, proprietary VoIP Processing, Billing and Call Accounting Software. This software is built on the BillingMasterTM

platform and is all encompassing in its functionality and features to service all the carrier, billing and customer service management requirements of the VoIP industry.

BILLINGMASTERTM SOFTWARE

BSSC is the developer and licensor of the proprietary BillingMasterTM Software

(www.billingmaster.info) and it’s affiliates have spent 4 years and several million dollars to design a state of the art, proprietary billing platform that is unique in the design and function of billing

processing. This proprietary software will be developed and enhanced for all businesses that are dealing in products and services that are metered and will provide a new and unique method of billing that up until now has been non-existent

VoIP Products and Services

BSSC is a wholesale supplier of software and hardware solutions for the VoIP industry. BSSC has gathered a large array of suppliers for all the types of hardware needed to run a VoIP business including; USB headsets, USB handsets, gateways, IP LAN telephone sets, IP Mobile phones, soft phones, and virtual PBX solutions. Product I: Local Access Long Distance Dial Around Service. End users are given a local access number and a traveling Toll Free access number with personal PIN number for when they are outside of their local calling area, providing end users with savings of 30-50% over what they would typically be paying through their

BSSC

Amitelo Canada Inc (BSSC)

Based in Calgary (Canada)

this company is responsible

for the entire range of

serv-ices of AMITELO in

Can-ada.

BSSC the

Canadian IP

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alternate providers. All end users are given the ability to view their CDRs (Call Detail Reports) in virtually real time when they log into their accounts.

Product II: EZ-ConnectTM World Wide

Call-Back Service

Allows end-users worldwide (fixed or mobile) the ability to initiate or “trigger” a call-back service from the Web or email, or their Mobile phone via SMS (Short Messaging Service) or WAP (Wireless Application Protocol). End users can access service from virtually anywhere, allowing them to place international calls at a fraction of the cost otherwise charged by the local service providers, and/or cell phone providers roaming charges. (Currently Under Development) Product III: PC to Phone

With Pay*As*You*Go accounts, end users are able to download the BSSC PC to Phone software to their computer. to make international calls at savings of up to 30-50% over what they would typically pay, directly from their computer with headset and microphone. Customers with high speed cable or DSL connection can make quality calls with high quality voice communication that travels from their computer, through their ISP, IP direct to the BSSC switches for international termination. This PC to Phone product offers customers the ability to keep an address book for maintaining a list of frequently called numbers, the ability to view their balance and account info online and the ability to recharge their account by credit card.

Product IV: IP Phones & Hardware

Phones that provide customers access to the BSSC network without requiring them

subscriber/customer only needs to have a high-speed Internet connection, either ADSL, wireless or Cable. BSSC further utilises a variety of IP hardware and adapters to arrive at various price points and perceived values for the BSSC clients. Calling between IP phones and soft phones is free, worldwide!

PRODUCT V: POWERLINE COMMUNICATIONS

(PLC)

BSSC is the Premium VAR for Telkonet w w w. t e l k o n e t . c o m P o w e r l i n e Communication (PLC) Technology. This technology uses the existing electrical power lines within buildings as the facility on which data (the internet ) is transmitted in Canada.

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AMITELO REPORT ON THE

SITUATION

A great start in 2006, watch out 2007

The breakthrough for the recent Internet technology, Voice over Internet Protocol (VoIP) came shortly after 2005. It brings to 2006 the ability to implement new voice and data concepts. In March this year the VoIP industry opened the mobile world for itself, with the first large

introduction of a new generation of mobile telephones at the trade fair CeBIT the future is clearly defined. The GSM mobile phones will, in the future, self connect in WLAN Hot Spots and will function as pocket computers within the network. Connections to further services (VoIP) from the WLAN are therefore possible and will advance the

deployment and take up of this technology.

AMITELO AG already has many projects successfully underway in the first months of this year. In particular the call shop product of the

AMITELO subsidiary Median has been changed completely over to the newest VoIP technology. External take up (AMITELO franchise) has already commenced for the 3rd generation call shop technology in April this year (all connections, are

already realised over VoIP in this business model). The model is deployable in any country and, as AMITELO also functions as the carrier for this concept.

AMITELO has already opened the 3rd generation call shops in four further countries!

Deploying the range of services of its subsidiary Amitelo Wireless SL, AMITELO becomes an A-Z provider of network services to the Costa del Sol. This network not only offers the basis of service for the individual customers in Urbanisations, but also larger diverse projects become realisable to satisfy demand. AMITELO is connecting, point-to-point, the first marine port in the Costa del Sol to the network, offering voice and data services within the entire port area using hot spot WLAN technology. After successful completion of the testing phase this pilot project will introduce AMITELO into other ports on the Costa del Sol and throughout Spain and the Spanish islands.

The two subsidiary companies, Median GmbH and Success Technology SA, have together, a 3rd-Generation call shop solution, particularly developed for Africa. Here both cultural differences are considered in the case of the design and deviations within the available infrastructure. The first call shops are installed already in several countries in Africa and are operational there for demonstration purposes. AMITELO is planning the modernisation of existing call shops with the governments of the respective countries. Besides only the telephone, other services are being taken up such as E-Learning and E-Government and are offered in the Shops.

During this time AMITELO interconnected the network with the National telephone companies of Sierra Leone and Togo, Mali is now in the implementation phase. Further countries are in contractual negotiations with AMITELO and will be imminently con-cluded. The contracts are bilateral and contain an enormous business potential. AMITELO is currently involved in many negotia-tions for large-scale projects. Those large-scale projects we will be published as contracts are finalised.

Our growth is indicative of further substantial increase. Thus the turn over of the AMITELO AG rose around 100% in relation to the same period of the previous year. This increase partially results from the ability to account for the acquisitions of the second half of 2005 retroactively. The EBIT from the first half-year of 2006, compared to the first half-year 2005 rose from euro 600 thousand (2005) to euro 2.7 million, this corresponds to a net yield growth of about 350%.

Thus AMITELO clearly exceeded the defined yearly prognosis made in November 2005.

The total EBIT amount at the six monthly cut off point (30.06.2006) was approximately 2.7 million euros. These positive results were achieved by the high margin contributions of all the subsidiaries in Africa.

Sometimes

we even get to

laugh!

Hope you enjoyed

Amitelo hopes that you found this edition of the quarterly newsletter informative and that it has enabled you to visualise a little better, the undertakings of Amitelo and it’s personnel. Look out for the next edition which will be published on the Amitelo AG web site in December, just in time for Xmas!

All the Best from the Amitelo Team

Contributors

• Tim Skilton

• Denice Ortega

• Marianne Jensen

Special Thanks

Ricardo Puerto for the interview! Thanks Ricardo, hope we didn’t stop you working too long!.

AMITELO MAGAZINE

Lowenstrasse 40 CH-8001 Zurich Switzerland Tel: +41 43 931 01 01 Fax: +41 43 931 01 06 www.amitelo.ag [email protected]

References

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