1.

Company Background

Dialog Telekom PLC is a subsidiary of Axiata Group Berhad (Axiata). Dialog

has spearheaded the mobile Industry in Sri Lanka since the late 90’s,
propelling it to a level of technology on par with the developed world. The
Company operates 2.5G, 3G and 3.5G mobile services, supporting the very
latest in multimedia and mobile internet services as well as international
roaming across over 200 countries. Dialog Telekom accounts for more than
50 per cent of Sri Lanka’s mobile subscribers.

In addition to its core business of mobile telephony, the Company operates

a wide portfolio of international telecommunication services, including but not
limited to retail and wholesale international voice and data services, based on
cutting edge International Gateway Infrastructure. Dialog Global, the
international arm of Dialog Telekom, provides state-of-the-art gateway
facilities through partnerships with ‘Tier-1’ international carriers. Dialog
Broadband Networks (Private) Limited (DBN) is a fully owned subsidiary of
the Company and is a key player in Sri Lanka’s ICT infrastructure sector,
providing backbone and transmission infrastructure facilities and data
communication services. DBN also operates a fixed wireless telephony service
based on CDMA technology. DBN was also the first service provider in Sri
Lanka to introduce high-speed broadband internet services based on WiMAX
technology.

Dialog Television (Private) Limited (Dialog TV), a subsidiary of Dialog

Telekom PLC, operates Dialog Satellite TV, a Direct to Home (DTH) Digital
Satellite TV service. Dialog TV supports a broad array of international and
local content including CNN, BBC, HBO, Cinemax, AXN, ESPN, Ten Sports,
Discovery Channel, MTV (Music Television) and Cartoon Network alongside a
wide portfolio of Sri Lankan television channels.

Currently, Dialog Axiata PLC is Sri Lanka's largest telecommunications

service provider, which operates Dialog Mobile, the country's largest mobile
phone network with over 6 million subscribers. Dialog is a subsidiary of Axiata
Group Berhad and Dialog was Listed on the Colombo Stock Exchange in 2005
and was the country’s first USD 1 Billion market capitalised company on the
Colombo Stock Exchange in terms of market capitalization.

Dialog launched its services in 1995 as the 4th entrant to Sri Lanka’s
Cellular Market and was the first digital network in South Asia. Dialog was also
the first operator in the region to deliver international roaming in 1997. Dialog
Mobile presently has the largest number of subscribers and revenue share.
 2. Highlights of Financial Performance

• Revenue declined marginally by 2 per cent in FY2009. However, the

Company witnessed positive revenue growth trends during second half of 2009
• Direct costs increased by 11 per cent YoY, driven by increase in Levies due to
rise in International Termination minutes and increase in telco depreciation
• Principal operating cost lines saw significant reduction year on year, due to
on-going cost rescaling activities undertaken by the Company
• FY 2009 NPAT (Net Profit After Tax) impacted by large scale non-recurring
charges arising from international best practice aligned Fixed Asset treatment

3. Current Position & Future

July 26, 2010 (LBO) - Sri Lankan mobile phone operator Dialog Axiata
made a net profit of 1.37 billion rupees in the June 2010 quarter compared
with a loss of 7.24 billion rupees a year ago, a stock exchange filing said. Sales
rose 14.3 percent to 10.16 billion rupees over the period while administration
costs fell to 1.6 billion rupees from nine billion rupees the year before owing to
cost cutting.

Basic earnings per share were 0.16 rupees compared with a loss of 0.99
rupees per share in the June quarter of the previous year.

The number of Dialog subscribers rose 10 percent to 6.6 million at end of June
2010 from a year ago.

"The company continued to register positive gains in the mobile market during
the second quarter of 2010, on the backdrop of aggressive competition," a
statement said.

"Company revenue grew by a robust 15 percent compared to the first half of

2009 and by two percent quarter-on-quarter."

The Dialog group returned to profitability in the March 2010 quarter after
suffering a string of losses in previous quarters owing to higher costs and a
price war brought on by stiff competition.

It said in the first half ending June 2010 it made a foreign exchange translation
gain of 279 million rupees in contrast with an exchange loss of 136 million in
the first half of 2009.
 4. Products & services at Dialog

1. Dialog Mobile

Dialog offers 3G and 3.5G coverage in Sri Lanka with 837 3G sites which
support video calls, mobile TV and broadband internet. Dialog was the second
operator to deploy an HSPA+ network in Sri Lanka testing out 28mbit/s
downlink though it is not available to general public up to now.

2. Dialog Television (DTV)

Dialog Television is a Direct To Home (DTH) satellite television service

operated by Dialog. Dialog Television channels focus on news, entertainment
and knowledge based programming. It provides international content including
CNN, BBC, HBO, Cinemax, AXN, ESPN, Discovery Channel, MTV and Cartoon
Network, in addition to a portfolio of Sri Lankan television channels. Dialog
Satellite TV uses Digital Video Broadcasting through Satellite DVB-S
technology. DTV is the only pay TV operator in Sri Lanka to have island-wide
coverage and was the first to introduce DVB-T (terrestrial) technology in Sri
Lanka. As of June 2010, there are 160,000 Dialog Television subscribers, a
17% increase from a year ago.

3. Dialog Fixed Line (CDMA)

As of October 2010, Dialog Fixed Line offered the lowest call charges among
the CDMA providers in Sri Lanka. Its new Dialog Fixed Line Blaster provides
1,800 minutes outgoing calls free within the Dialog Fixed Line network while
calls to other networks are charged at Rs.2.00 per minute at anytime to any
network. Dialog Fixed Line has coverage throughout the island. As of June
2010, there are 182,000 CDMA subscribers using Dialog Fixed Line and it is the
3rd largest fixed telephone operator in Sri Lanka.

4. Dialog Global

Dialog Global, the international arm of Dialog Axiata, provides international

services with GSM roaming coverage of 211 destinations internationally, on
over 530 networks, including bilateral partnerships with global carriers.