GTV to broadcast Barclay's Premier League football to forty eight African countries

London 4 June 2007 - Gateway Broadcast Services, an unrestricted subsidiary of Gateway Telecommunications, has raised an additional $40 million to finance the roll out of its new pan African pay-TV service, GTV.

GTV will be Africa’s first widely accessible pay-TV service, providing a choice of high quality television programming at an affordable subscription price. The service will address the growing popularity of European football in Africa and will include exclusive live broadcasts of 80% of the UK’s Barclays’ Premiership football games to 48 sub-Saharan African countries. The service will be available across the continent but will launch initially in East Africa later this month.

The additional $40 million was invested directly into the Gateway Broadcast Services, a separately managed subsidiary of Gateway Telecommunications, a leading provider of pan-African communications services. This is the third significant fund raising programme completed by Gateway Telecommunications in the last seven months.

The Group raised $115 million from the European high yield bond market in November 2006 and a further $32.5 million in May 2007 to finance the acquisition of GS Telecom, a leading African provider of data connectivity services to corporate customers and telecommunications operators.

Among the new group of investors in Gateway Broadcast Services is Kinnevik, the Swedish investment company. Over half of Kinnevik’s investments are in companies successfully pioneering telecoms and media services in emerging markets. The company supported the growth of pay TV in Eastern Europe and is also a major shareholder in Millicom International Cellular, a successful emerging markets mobile telephony company with significant presence on the African continent. The total value of Kinnevik’s investments is $8 billion. Additionally, the new strategic investors included Citigroup, Noonday Global Management and Avenue Investment Management.

Julian McIntyre, President of Gateway Broadcasting Services Ltd commented,

"This $40 million investment has demonstrated the excitement that is growing around GTV and we are delighted to bring new notable partners aboard to help drive forward our ambitious expansion programme across Africa.

“The continent currently represents the least penetrated pay-TV market in the world, and there is huge appetite for the premium news, sport and entertainment that pay-TV offers. Monopoly pricing and programming with no relevance to viewers’ lives has put pay-TV out of reach of most television-owning households. GTV is committed to providing African viewers with the service they want at a price they can afford.

“Millions of Africans want to watch the Premiership at affordable prices and we are delighted to launching a new service which will deliver this to them as well as quality news and entertainment.”

Mia Brunell, President and CEO of Investment AB Kinnevik, commented,

“We have seen a great deal of success in Africa with services aimed at increasing consumers’ access to communications technologies. The GTV service attracted our interest because it has been designed to leverage those technologies to radically expand the pay-TV market.”

ENQUIRIES

Gateway Communications
Tom Tudor
Tel: + 44 20 7173 1700

College Hill
Corinna Dorward (London)
Tel: + 44 20 7457 2020

Fred Cornet (South Africa)
Tel: + 27 11 447 3030

About GTV - www.gtv.tv

Africa represents the least penetrated pay-TV region in the world with less than 1% of television-owning households in sub-Saharan Africa currently subscribing to pay-TV services, compared to 15% in Eastern Europe, 36% in Western Europe and 93% in North America, However, with over 46 million TV sets and growing at well over 10% per annum, Africa represents a large and rapidly growing market for subscription television which Gateway’s own independently commissioned research estimates will grow to over $3bn by 2015.

GTV is a dynamic new Pan-African pay-TV service delivering choice, quality and innovation to a new breed of TV viewer. With a balanced and exciting choice of premium content, GTV is redefining pay-TV in Africa by offering it at a price point accessible to the ordinary African. GTV is committed to supporting local content as well as offering major international programming ideal for the whole family.

GTV will comprise a wide range of sport, movies, popular series, music, education and religious content. The service will carry both major international channels as well as a number of in-house channels, including “G Prime”, a general entertainment and movie channel, and “G Sports 1” and “G Sports 2”. The latter will focus on live sports events, including the major European football leagues. The service will also focus heavily on promoting African content. The direct-to-home, satellite-based service will deliver the highest quality digital reception across the continent. An advanced and efficient delivery platform will substantially reduce the cost and ease of set-up for customers. GTV is delivered across Gateway Communications’ satellite infrastructure.