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Company Profile

Business name: Address:

Haiti Cell:

Haitel S. A. 17 Rue Darguin Petionville Haiti, West Indies 509-3510-0001,

3558-0010

Page 2 of 13 Table of Contents Table of Contents ............................................................................................................. 2 Executive Summary ......................................................................................................... 3 General Company Description ...................................................................................... 5 Products and Services...................................................................................................... 5 Marketing Plan ................................................................................................... 11 Conclusion14

Page 3 of 13 Executive Summary

Haiti Telecommunications International S.A. (Haitel) is the pioneer in the wireless telecommunications services in Haiti. It is the first company in Haiti and the Caribbean to have a 3G network. Haitel has a 3G CDMA 2000 1x 1900 MHz network and is the only telecommunications company in Haiti that can offer a full range of wireless services and products. Haitel began its operations in July 1999. It quickly acquired more than 85,000 customers, and produced a positive Net Income by its second year of operation. Today, Haitel has more than 430,000 active customers on either its basic prepaid plan or post prepaid plan. Haitel currently offers wireless mobile and fixed voice service, data and EVDO services. Haitel is also an Internet Service Provider (ISP) offering both wireless and wire line internet access services. Haitels revenue comes from its domestic and international voice traffic and data, plus EVDO service. It has coverage in all of the major metropolitan cities and most of the popular rural areas in Haiti. On average, the active wireless customers produces minimum in US $12.50/month in voice and $45/month in internet revenue. Haitel is a 100% prepaid wireless service company so therefore, it does not have any significant collectible or accounts receivables issues with its customer base. Despite the arrival of new and well funded competitors, plus the unstable political climate and global economic downfall; Haitel still maintains a strong market share. Haitel is still convinced that there is an even larger market waiting to be captured despite the current explosion in the Haitian telecom market; because there is approximately 2.5 million lines active out of the 10,000,000 inhabitant. For example, according to a market study commissioned by Haitel in 2002, the Pyramid Research Group predicts that the tele-density in Haiti will grow from only 1.4% in 2000 to 6.8% in 2011. To be more expletive , the total number of phone lines in Haiti today is a maximum of 200,000 while the population of Haiti 8,000,000 people. The chart below from the Pyramid Research study, illustrates this huge potential growth very well. With a larger network and expanded back office capabilities, Haitel is in the perfect position to capture the majority of this growing market.

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- Haitel Confidential -

Communications Environment
Haiti in the Region
60.0% 50.0%

CHILE URUGUAY ARGENTINA VENEZUELA

Teledensity (%)

40.0%

30.0%

COSTA RICA EL SALVADOR

20.0%

MEXICO

DOMINICAN REPUBLIC BOLIVIA

10.0%

ECUADOR
0.0% 0

HAITI
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

PPP GDP/Capita (US$)

Haitis Haitisteledensity teledensityis islower lowerthan thanthe thecountrys countrysGDP GDPlevel levelwould wouldsuggest. suggest.

Chart 1: Teledensity in Haiti and the Region

Haitels initial funding of $45 million was obtained from Nortel Networks. Nortel Networks is a significant Canadian telecommunications equipment provider. This funding took the form of a 5-year balloon note. Payment is made by having all of Haitels international telephone service correspondents pay all international settlement revenues due to Haitel into an escrow account in a US bank. Haitel has paid every interest and principal payment on time and has paid off this loan in December 2004. However, since a significant portion of its cash flow was used to repay this short term loan, Haitel would prefer to pay off any loan obtained in a better and longer term financing. Due to its tremendous success during its first seven years of operation and the upgrade to the 3G network, Haitel is seeking an investment to increase its networks capacity and efficiency, and expand its coverage nationwide to capture more customers. Haitel is also opened to a partnership.

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General Company Description

Mission statement: Haitels mission is to function as a customer oriented company with a culture of quality so that the Haitian telecom consumer can profit from a full range of high value and competitive telecommunications products and services.

Form of ownership: Haiti Telecommunications International S.A. (HaiTel) is a privately owned company incorporated under the laws of Haiti with the following ownership: 85% Mr. Franck N. Cine 15% Other

Company history: The Company, which was incorporated in December 1997, had signed a 15-year agreement with TELECO for the acquisition and exclusive operation of the CDMA 1.9 GHz band in Haiti. In May 1998, Haitel had entered into a supply agreement with Nortel Networks to purchase the equipment and services necessary to construct the initial network. Haitel had also signed a 5-year $45 million Credit Facility Agreement with Nortel to cover these costs. Haitel currently has 9 sales centers including 4 in the Port Au Prince area. Along with the sales centers, Haitel has over 200 retail distributors selling phones and telephone cards. These distributors are strategically located throughout the network coverage area. Haitel also has international operating agreements with 6 major Carriers (4 US, 1 Canadian, 1 DR). Connections to these Carriers are through a combination of Intelsat satellite facilities and undersea fiber optic cables.

Products and Services

Haitel offers the products and services described below in all of its 9 Sales Centers which are conveniently located throughout the network coverage area. Telephones.

Page 6 of 13 Haitel currently sells a wide variety of both fixed (Wireless Local Loop & Terminal) and mobile phones. The phones comes from many different vendors mainly from the US. Activation. Haitel can also activates compatible CDMA customer pre-owned phones. The activation strategy is to allow customers the flexibility of choice and to used phones that were purchased by a relative in the USA as a gift on the Haitel network. Customers may also choose to buy their phone through any of Haitels authorized Distributors or of the many telephone outlets in Haiti. Website Haitels website is: www.haitel.ht Recharge Card Sales With the exception of a very few large corporate clients, all of the telephone services described above are offered exclusively on a pre-paid basis. Customers cannot make any calls if their account has a negative balance. Customers must purchase a Haitel Recharge Card from Haitel or one its 200 Authorized Card Distributors and apply the card to their phones account in order for the phone to work. Haitel pays these Card Distributors a commission of 10%-15% depending on the volume purchased.

Card Denomination 50 Gourdes 100 Gourdes 250 Gourdes 500 Gourdes

Equivalent USD Value (@40 Gdes:$1 USD) $1.25 $2.50 $6.25 $12.50

Page 7 of 13 Internet Access Services Haitel offers two different Internet access products. 1) Haitels Wireless Internet Access This service allows Haitel customers to access the Internet through its EVDO service. 2) Dial-up Data Service Haitels customers have the ability to use the dial-up data capability from many models of both mobile and fixed phones. Customers can dial any modem in the world with this product. Domestic International Private Lines Haitel offers digital private line services both throughout its domestic coverage area as well as to any point in the world. Haitel currently offers this service from 64kbps to 2MB.

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The Marketing Plan:

General Information Haiti is a grossly underserved telecommunications market. With an estimated maximum of 2,000,000 telephone lines for a population of an estimated 10,000,000 citizens, the potential for customer growth is enormous. Despite the generally poor economic conditions in Haiti, Haitels experience is that customer demand for telephone service remains very high. Haitels success during its first four years of operations is ample support for this belief. Products Haitel offers a wide range of products and services to its customer base. Currently, these are: 1. Mobile and Fixed Wireless Voice Service. Haitel sells a wide variety of mobile and fixed wireless phones. The prices range from as low as $99 to more than $250 depending on the make/model. This service is offered exclusively on a pre-paid basis. Customers add credit to their phone accounts by purchasing cards from a Haitel Sales Center or from one of more than 200 card distributors. Haitel also offers these wireless customers a wide range of rate plans for personal or business use. These rate plans range from the high end plan which has a monthly fee in exchange for free inbound calls to the low end plan which is slightly more expensive pay as you go style plan. Finally, customers can choose from a wide variety of optional services for their phones including voice mail, call waiting and caller ID services. 2. Wireless Fax and Dial-up Data Service. Haitel offers these services to all of its customers at the same rate as its voice service. To the best of Haitels knowledge, this is the only network in the world that offers wireless fax service on a commercial basis. 3. International Private Lines (IPLs). Because Haitel owns and operates its own Intelsat standard A earth station, it has a huge amount of international bandwidth at its disposal. This state of the art earth station and 100% digital network puts Haitel in the unique position of being able to offer these IPLs to our customers. 4. Internet Access Services. Haitel offers both wireless and wireline Internet access services. Customers can choose from the fixed rate plan for unlimited service or a per minute rate plan from their mobile or fixed phone.

Page 9 of 13 5. Debit Card services. Haitel offers a debit card that can be used from one of more than 800 Haitel payphones or from non-Haitel phones in Haiti. Haitel has plans to begin offering an international debit card in the very near future. Customers Simply stated, the entire Haitian population is Haitels target market. Since they are so under served, they are all potential Haitel customers for one or more services. While Haitel has created various services for the residential and business customers, almost all Haitians need more telecom services. Another aspect of Haitels market is that as many as two million Haitians live outside of Haiti. Most families have at least one relative living in the USA, Canada or elsewhere. This situation creates a need for a significant volume of international phone calls which are the most profitable phone calls for any telecom company.

Competition Haitel has three competitors in the market. COMCEL COMCEL offers 850 GSM MHz service which only allows it to provide limited mobile wireless services. Their perceived strength is their strong marketing efforts. In addition to their other major weaknesses is the quality and capacity of their network which is prone to performance problems and outages. It is not perceived to be a high quality network by the public. DIGICEL DIGICEL operates a 1900 GSM MHz network. Their perceived strength are their financial support and marketing campaigns. As ComCel their major weaknesses is the quality and capacity of their network which is prone to performance problems and outages. Despite these significant weaknesses of each of these competitors, Haitel respects them as viable competitors. Above all, Haitel believes that the first competitor to complete a reliable nationwide network coverage that covers all of the major cities will ultimately win the competition for customers in Haiti and will be the dominant Carrier for many years.

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Marketing Strategy Since Haiti is such an underserved market, Haitels fundamental marketing strategy is very simple and straightforward one; Be the first Carrier to enter each major city Provide enough initial capacity in each of these cities to capture at least the vast majority of potential customers in each of these cities Provide high quality and reliable telephone service to our customers. Provide high quality customer service and after sales support.

Advertising: Since Haiti has literacy problems, Haitel focuses very heavily on radio advertising. We have long term contracts with many of the most popular radio stations in all of our served markets.

Pricing Given the generally low income condition of most of our customers, the market is very price sensitive. 1. Phone Pricing. While Haitel offers a wide variety of telephones at many different price points, the majority of phone sales are for mobile phones that can be sold for less than $100 US. Fortunately, these are readily available for purchase by Haitel in the market. 2. Minute Pricing. A. Fixed Wireless Service. The current pricing for Haitels fixed wireless service is 2 Gourdes/min ($0.05 US/min) for both local and domestic long distance calls. B. Mobile Wireless Service. The current pricing for Haitels mobile wirele ss service is 5 Gourdes/minute (0.125US/minute) for both local and domestic long distance service.

Page 11 of 13 C. International Rates. Haitels international rates begin as low as 10 Gourdes per minute ($0.25 US/minute) for calls to the four most popular calling destinations (USA, Canada, France and the Dominican Republic). However, although Haitel has experimented with lower rates, it found that there was no change in the volume of these calls. Haitels customers seems to clearly prefer to receive rather than initiate international calls. Since Haitel is compensated by the International Carriers at a higher rate for these inbound calls, Haitel is content with this situation. Finally, Haitel emphasizes that, with the exception of a very few large corporate customers who receive limited credit, all of these services are offered only on a pre-paid basis.

Distribution Channels Haitel has arrangements with various distributors for the sale of both phones and card products in all of its served areas. 1. Phone Sales. Haitel currently has agreements with three Phone Distributors. These distributors may only sell Haitel compatible phones and accessories. These distributors pay Haitel a fee, in advance, for each telephone number that they buy. Haitel retains the exclusive ability to activate these phones on the network as a control measure, however. 2. Card Sales. Haitel has agreements with more than 200 distributors that are located throughout the served cities. Typically, these distributors are owners of gas stations, grocery stores, bars, restaurants and other facilities with a high volume of customer traffic. With a very few controlled exceptions, these distributors pay in advance for the face value of the cards plus tax and less than a 10-15% commission based on the volume of each purchase.

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