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Digicel Buys El Salvador Operator

Digicel, the Pan-Caribbean operator has entered into an agreement to acquire Digicel Holdings (DHL), an entirely separate company that operates a GSM mobile telecommunications business in El Salvador by the same name, Digicel. DHL also has a mobile telecommunications license in Guatemala and currently employees 160 people through its Salvadoran subsidiary.

Subject to certain conditions, and expected to close shortly, the pending DHL acquisition will represent a significant milestone for Digicel, marking the company's first entry into the burgeoning Central American mobile telecommunications market. The acquisition will expand the company's existing Pan Caribbean GSM network, and increase its coverage to a population of more than 22 million people.

Colm Delves, Digicel Group CEO, looks forward to the company's entry into the Central American market and believes it will be an exciting new phase in Digicel's growth.

"Our entry into the Central American market will be an exciting new phase in Digicel's growth and we look forward to welcoming Digicel Holdings Limited and the El Salvador staff and customers into the Digicel family," said Colm Delves, Digicel Group CEO. "At the same time, we also look forward to our imminent entry into the South American markets of Guyana and Suriname and taking significant steps forward in the roll-out of a seamless regional telecommunications network."

El Salvador has one of the most open telecommunications markets in Central America following the privatization and liberalization of the sector in 1998. Mobile penetration is currently estimated at approximately 30 percent and the sector continues to enjoy sustained growth with mobile phones overtaking fixed lines service in 2002.