The Group’s accomplishments can be tracked down in the improved and developed ICT sector in Jordan, even at the dawn of 2005, which put the country on equal footing amongst international peers. Locally, as well as regionally, the Group now occupies a leading position in the highly competitive telecommunications market.

His Majesty King Abdullah II continues to endeavor tireless efforts towards social and economic development in Jordan, and continues in avid determination his aspirations to make Jordan an attractive centre for investment. As a result, Jordan has established a foothold on the threshold of an informed economic society, which will open unbound horizons of prosperity and well-being. The Jordan Telecom Group has thus been empowered to play a vital role in this new era of knowledge based economy. Our advanced networks continue to enable us to provide the best.

The Group unfailingly demonstrates keen awareness of the due prominence the industry of telecommunications holds on Jordan's social, economic and political structures. Such awareness prompts us to develop our networks to become digital and smart, thus providing new means of communication, at ultra high speeds, with applications distinguished for their vitality, flexibility, safety, and reliability. Different sectors of the society are already adopting such technologies and benefiting largely from them, such as education, health, and public service sectors. I can confidently and earnestly state that Jordan Telecom is qualified to face up to all types of challenges, and to maintain such elevated position amongst network operators and service providers, both locally and regionally.

Looking ahead, the future imposes substantial challenges. However, we have resorted to harness against such challenges by enhancing our capabilities to excel in our performance. We derived on our networks' capabilities to delve into an era of innovation and hi-tech applications. We fully realize that our customers are first and foremost our first priority, thus we provided all possible means for their comfort and needs. We availed them of the easiest ways and means to obtain information. We served educational, economic and business institutions with e-business solutions to enhance their productivity, and give them tools to compete nationally, regionally and internationally.

Our outstanding performance in 2004, testifies to our success in achieving our targets. Our ambitious goals, both qualitative and quantitative, have driven us to identify ways and means to improve our operations. We offered effective communication solutions, lowered our prices, initiated efforts to spread the Internet culture, as well as participated fully in on going e-education and e-government activities. On a regional and international level, we attracted the business sector through our hi-tech and professional service centres, such as the Regional Contact Centre.

Our horizons extended further towards international markets. We adopted IMSP technology, commercially defined as Triple Play. To ensure a safe launch of the service, we ran a trial period, whereby we provided audio services, data and images, through fixed telephone lines. Then we embarked on Internet Protocol Virtual Private Networks, commercially known as IPVPN, geared to link subsidiaries to their mother companies or organizations. And all the while, we continued to enhance the connectivity of our networks with regional and international networks.

Our role in the enhancement of small and medium-sized IT companies witnessed in 2004, an active and marked participation. This effort was geared to translate the aspirations articulated by His Majesty King Abdullah II in the ICT Forum. Our efforts were crowned with an Innovative Business Competition we held for small and medium sized ICT companies.

On a social front, the Jordan Telecom Fund being the social sponsoring arm of Jordan Telecom, joined forces with a Jordan River Foundation awareness campaign, and provided them with a fully equipped “Awareness Bus”, to facilitate their noble and important mission. Furthermore, the Jordan Telecom Fund published Tawjihi results on the Internet, while it continued its mission on board of its Internet bus, and within the folds of its Internet tent, to spread Internet culture in every nook and corner of the country, reaching out for all under privileged students and teachers. Total number of beneficiaries of the Funds activities exceeded 62 thousand students, and 12 thousand teachers. The Fund's computer lab provided 16,000 hours of training to NGO employees.

Jordan Telecom continued, as well, to render its efforts to e-learning activities. On the one hand, it continued to connect public schools to the Internet over its wide bandwidth, while on the other hand, it connected public universities to the www. Through a series of live demonstrations lasting two months each, Jordan Telecom activated wireless Internet connection service (Wi-Fi) in several private and public universities. Furthermore, Jordan Telecom established a Fund for supporting top Jordanian student achievers in French and other universities of higher education.

Moreover, and in a gesture to promote relations between France Telecom, Jordan Telecom’s strategic partner and source of its high-tech know how, and Jordan, France Telecom fully funded and executed the Ministry of Education Arabic language curricula computerization program. A twining program between a number of Jordanian and French schools was also conducted

2004 witnessed a flow of special offers and price-reduced services, including reductions on installation fees and substantial reductions on local and international tariffs. The ADSL Internet connectivity service also witnessed reductions amounting to 50% of its original cost, which had a positive bearing on the Internet service provision, and raised the number of ADSL Internet subscribers to more than 10,000 towards the end of 2004.

Jordan Telecom participated in local, Arab and International ICT forums, and marked a distinguished presence, alongside its strategic partner, France Telecom. Such presence was highlighted by the attendance of France Telecom's Chairman and CEO at the World Economic Forum, and the Jordan Telecommunication Forum, as well as others organized by the ITU.

Jordan Telecom's accumulated financial results showed a clear improvement in the level of the Group's performance, despite numerous offers and tariff reductions. Revenues increased by 10% over the 2003 results, while net profit increased by 34% in 2004. These improved results were positively reflected in the movement of Jordan Telecom shares in the Amman Financial Market, whereby share prices increased by 63%, closing at JD 3.62 on 31 December 2004, compared to a JD 2.22 closure at the end of 2003.

On a global front, the Group managed to face up to the international challenge of the decline in fixed telephony usage, against a thriving growth of mobile, and a further illegal practice of international traffic passage over Internet protocol, known as the VOIP. To counter defend its own interests, Jordan Telecom sought to reduce tariffs of national and international traffic, which would as well serve in the preparation for the forthcoming market competition.

Jordan Telecom enhanced its fixed telephony services, by putting on offer competitive subscription offers to first and second lines. In addition, the improved potentiality of MobileCom and the data information fields promoted Jordan Telecom’s chances for healthy growth.

The Group achieved, individually and reciprocally, an overall increase in the number of new lines amounting to 12% in comparison to 2003 figures.

The Jordan Telecom Group is reaping the fruits of its painstaking preparation for challenges posed in 2005. We have paved the road for a smooth and streamlined transition highlighted by the overall achievements of the Group’s companies. We call upon our shareholders and partners to seek their support in assisting our endeavors to achieve better customer care and sales growth. We call upon them to prompt and stimulate loyalty towards Jordan Telecom. From my position, I am quite confident of the capabilities of the Jordanian French team that is leading Jordan Telecom and MobileCom towards further successes in 2005. I reiterate our preparedness to meet the unprecedented challenges in the Company's history, with utmost vigor and ability.

I seize this opportunity to reaffirm the Jordan Telecom Group's commitment to the vision and directives of His Majesty King Abdullah II. We shall continue to build for the present and future of our country. I would also like to extend my deep appreciation to the Government of Jordan, the Ministry of Finance, the Ministry of Information and Communication Technologies, and to the Telecommunications Regulatory Commission.

They have non-failingly provided us with the moral and physical support. From this stand, I also seize the opportunity to pledge full Jordan Telecom compliance with the regulations, rules, and directions set for the sector, as well as render due compliance for the terms and conditions of our license.

To conclude, and on behalf of the Board of Directors, it is my honor to express deep appreciation to our shareholders, for their continued trust. Simultaneously, I would like to send a message of gratitude to our strategic partner, France Telecom, for their innovative and pioneering initiatives, as well as their relentless efforts to provide us with the latest technologies and services, thus contributing substantially towards our improved overall performance. Our shareholders shall remain to be the first, and foremost beneficiaries of our exalted performance.

And finally, I would like to express my deepest appreciation to our customers, for their growing support, and for our employees who render their services in the interest of their Company, thus leading it towards achieving its goals, inspired by the Royal vision for the future of our homeland.

Dr. Shabib Farah Ammari (PhD Econ.)
Chairman of the Board of Directors