Saudi Telecommunications Company (STC) (the "Company") announces that it has received a letter today from the Public Investment Fund (the "Fund"), the Company's largest shareholder, enclosing the Fund's potential transaction announcement stating that the Fund is considering selling a portion of its shares in the Company, while retaining a controlling interest of more than 50% in the Company (the "Potential Transaction" (the "Potential Transaction"). The sale of any of the Fund's shares will not commence until further announcements are made and relevant approvals are obtained in accordance with the Fund's announcement of the Potential Transaction.

The Company does not believe, to the best of its knowledge, that this Potential Transaction will affect its strategy, day-to-day business or its employees, and any material events will be announced at a later date.