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Brief OverviewNovember 2008

2Proprietary and Confidential

SEACOM owns & operates a high capacity undersea cable linking Africa to Europe and Asia via the Middle East

State of the art, privately funded, submarine fiber optic cable that we will own and operate

Enormous capacity of 1.28 Tb/s will enable Africans to enjoy high demand services such as HDTV, IPTV, true broadband Internet and peer-to-peer networks

+/- 17 000 km route will link South Africa to Mumbai in India and Marseille in France via Mozambique, Madagascar, Kenya, Tanzania and Ethiopia (undersea portion > 13,500 kms)

Internet and IP solutions as well as global onward connectivity for voice and private line solutions

Overview SEACOM Topography

Delivery Deadlines

3Proprietary and Confidential

SEACOM is an African project with majority African ownership… that separates ownership from use of capacity

23.75%InternationalHerakles Telecom

• Not a national telecommunications operator • Strategic value add• Sector knowledge and relationships• Financial backing - Proven access to equity and

debt funding

76.25% African

Industrial Promotion Services – 26.25%Venfin – 25%

Convergence Partners – 12.5%Shanduka – 12.5%

• Venture/Seed Capital• Mega-Project Developers• Management expertise

Fully funded - Project debt provided by Nedbank Capital and Investec Bank

Delivery Deadlines

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SEACOM is under-construction, having sped to market specifically to support the growing bandwidth demand leading up to 2010

SEACOM is financially closed project, and will be the first to complete construction on the eastern route to Europe.

June 2009 ready for commercial service

Fully funded – Debt & Equity

Marine Survey work completed from South Africa to Kenya

Construction phase initiated with manufacturing of cable & repeaters in November 2007

Telecom Egypt: Alcatel Turnkey Construction Contract in force

Environmental Approval Activities initiated

Delivery Deadlines

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Poverty alleviation requires growth of the local economy through prosperity in all industry sectors of local trade and export

Reduces cost of Doing Business

Diverts investment into local network

Undersea cables reduces the cost of doing business, allows new industries to emerge and diverts investment into local communications infrastructure

New industries: BPO, Intl Call Centres, & etc...

Poverty Alleviation

Cycle

Bandwidth Market

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For the first time, Africa can participate in collaborative global distance learning initiatives that exchange real time bandwidth intensive voice & video

Bandwidth Market

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Information, specifically Educational content is freely available. The use of such courses requires intensive bandwidth, but offers tremendous social benefits

1800 Courses made available free

In three languages

Presented in Audio and Video format

World leading Institution MIT

Massachusetts Institute of Technology

Bandwidth Market

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Africa can now make use of bandwidth intensive remote services, such as Tele-Medicine, and additionally become a supplier of Tele-Medicine services

Bandwidth Market

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SEACOM has reduced the cost of international bandwidth for Universities and Research Institutions by 5 000% in South Africa

SEACOM’s commitment to participating in the development of the continent is unprecedented

• SEACOM is providing 40 universities, education and research institutions in South Africa with 50 times more bandwidth at the same price currently being paid annually to Telkom

• …further more, after six years, the institutions will own the capacity for the remaining life of the cable resulting in annual savings to the institutions

• The bandwidth that the institutions will enjoy, is almost equal to that currently available to the entire South African population

• South Africa can host research facilities in which primary data if significant size is distributed to the rest of the world for analysis.

• Radio Astronomy

• Karoo Array Telescope

• Square Kilometre Array

• South Africa can source primary research data from large international projects and conduct secondary research analysis

Primary & Secondary Research Data Exchange

Picture

• SEACOM has extended the below cost bandwidth offer to the alliance of Southern and Eastern African Universities called uBhuntuNet.

• Distance Learning Initiatives will allow virtual classrooms between Africa, Europe and India.

• South African universities can offer distance learning classes to students at universities in neighbouring countries.

Education Initiatives

Bandwidth Market

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SEACOM will ensure affordable open access & interconnect to all operators within the cable landing station…

• SEACOM will construct three buildings at the landing station

• Building # 1 - receive submarine cable and interconnect to backhaul to Johannesburg

• Building # 2 - Ancillary station: power back up, air conditioning etc.

• Building # 3 - Open co-location to ensure open access, the station will be outfitted with direct interconnect to the submarine fibre optic network

• The building will be declared an Essential Facility.

• Only operating costs of the co-location building i.e. electricity, air-conditioning etc… will be used to determine co-location costs

• SEACOM’s ensures that all carriers have open and equal access to the submarine fibre cable

SEACOM Landing Station Layout

Services & Pricing

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SEACOM’s market strategy is to develop a high volume, low cost market which will encourage new industries to emerge, stimulating further demand

The South African Minister of Trade & Industry stated that high cost of Telecommunications was an inhibitor to call centre industry growth... A minimum of 30 to 35 Gbs to support desired BPO and Call Centre industries

Broadband on Demand

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Internet and international communications costs contains a large portion paid for satellite or international circuits...

SEACOM offers packaged and complete services all the way to London

SEACOM pricing is 90% less than current fibre pricing.

SEACOM pricing, at worst is $117 vs. $3000 for Satellite

SEACOM pricing includes co-location, & interconnection, and discounted onward connectivity

SEACOM’s price reduction results in significant savings:

• That could be discounts to customers

• Or re-invested in local infrastructure

SEACOM Pricing Benefits

Reduced Communications Costs

International Circuit

Bandwidth Market

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SEACOM’s concept of Broadband on Demand to operators is a risk free, always upgradeable capacity purchase which is a direct & recoverable cost

Operators want to focus on core national business, on value adding services, and move away from risky infrastructure investments

Operators want to be treated as customers…

Operators want to avoid collaboration in large committees for capacity upgrades decisions

Operators want packaged solutions for internet and ongoing connectivity

Operators Want:

Simple Capacity Purchases – Zero Construction and Management Risk

A professional service with Service Levels and Penalties

Packaged solutions of co-location, interconnect and internet or ongoing connections

Removal of Bottlenecks: Termination in Johannesburg

The Future is IP with standard high capacity interfaces and burst-able solutions

SEACOM Offers:

Broadband on Demand

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SEACOM is the required real and tangible driver for lowering the cost of communications and stimulating market growth at all points in the value chain

SEACOM, Real and Tangible

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BACKUP

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In addition to providing an update on timing, this will share insights in market growth and SEACOM’s services & pricing

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File sharing, and streaming video are changing the way the Internet is used - enhancing the capabilities of the Internet but also requiring HUGE amounts of bandwidth

Music sharing programs like Apples ITunes now accounts for 60% of all Internet traffic; further, the sharing continues 24 hours a day and has collapsed the concept of bandwidth management control

The founders of Skype are now launching a video sharing platform, where anyone in the World can stream video from

another computer anywhere in the world

Streaming Video is converting into IPTV. IPTV is expected to be the largest consumer of bandwidth by 2011

Enabling Access to Web 2.0 Content

Bandwidth Market

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US Television draws 8.5 to 15 million viewers per day, while YouTube has 100 Million views per day... Africa will access the same content through SEACOM

American Idols this year had 27.9 million viewers in a single broadcast and in one single advertising event while the most viewed movie on YouTube has 75 million views

IBM reports that typical viewers are spending equal amounts of time on the Internet as with TV

Selected Content... Says much about preferences to marketers

Cost of operating a YouTube much lower, content is not developed by YouTube

Who do you spend you marketing budget with? At such a low cost can you afford to not spend at YouTube

Bandwidth Market

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• New customers are subscribing for ADSL, 3G and broadband wireless services at a tremendous rate

• SEACOM conservative model uses a 35% growth rateSubscriber

Growth

The demand for international capacity from South Africa’s broadband segment is set to outstrip demand by traditional voice and leased lines

Developments Wireline Wireless

New Technology2004 - 2006

ADSL 384, Contention 100:1

3G, 384Contention 100:1

New Technology2007

ADSL 1024, Contention 100:1

HSDPA 1.8MbsContention 100:1

Improved Service2009

ADSL 4096, Contention 50:1

HSDPA 1.8MbsContention 50:1

Improved Service2010

ADSL 4096, Contention 20:1

HSDPA 1.8MbsContention 20:1

Impact of access technology and contention ratio on market size (Gb/s)

• Initially, operators will compete via price and coverage to grow the subscriber base as fast as possible

• Mature competitors will start improving Contention Ratios to improve the quality of service and reduce churn

• Last mile technologies have been developed with capacities of 20 Mbs and beyond

• SA has introduced 4Mbs ADSL, and 3.6 Mbs HSDPA

Access Technology

Bandwidth Market

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The relevance and importance of international communications should not be restrained by the “Limits of our Imagination” such as the initial forecasts for mobile communications in Africa

Original Mobile Forecasts were based on number of fixed line users

Expected 10 Million users in all Africa after 10 years

Currently at 225 Million users

Africa GSM Forecasts vs. Actual

Assumes conservative user growth of 35% per annum

Assumes no new introduction of technology at ADSL 4096, HSDPA 1.8Mbs

Assumes contention ratio of 20:1 Demand will grow from 10Gbs to 350Gbs

Broadband Forecasts

Bandwidth Market

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Last mile networks such as 3G mobile and WiMax are increasing the demand on the Internet every day, 60% of new demand is from the music sharing, video streaming and 3D Internet

• 2 new China to US cable (6 Terabit each)

• 1 new Japan to US Cable

• 2 new India to Far East (4 Terabit each)

• 1 new Australia to Guam Cable

• 1 new Europe to Iceland Cable

• 4 new cables from India to Europe

This change in the Internet drives the global demand for new submarine fibre optic cables... Despite construction capacity shortages, SEACOM’s RFCS is guaranteed

Bandwidth Market

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SEACOM’s Undersea fiber optic cable system offers Intra-Africa ring connectivity, as well as direct connectivity to Europe and Asia

Dual fiber pairs service Kenya, Tanzania, Mozambique and Madagascar

In the event of damage to the Mediterranean portion of the cable, the system can be switched in Egypt onto one of several other cables through the Mediterranean.

Network Schematic Design Information

Services & Pricing

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SEACOM has addressed the concerns about affordable South African terminations & Backhaul and also provides international terminations over a global network

Open-Access landing station for the SEACOM Cable in Mtunzini

Backhaul bundled into the SEACOM pricing

SEACOM offers customised onward connectivity to anywhere in the world

South African Network Topography

Services & Pricing

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Product Equivalent STM-1

(Pre-RFCS)$ / Mbs / month

STM-1 $4 350 000 $117

STM-4 $3 697 500 $99

STM-16 $2 773 125 $75

STM-64 $1 663 875 $45

Equivalent to ownership for the remaining life of cable (~20 years)

Can be used as security, or otherwise treated as physically owned asset

Ideal solution for large operators with long term bandwidth demands, and having capital to take advantage of volume discounts

3, 4 or 5 year lease product

SEACOM offers competitive and flexible lease pricing

Ideal solution for smaller operators with uncertain future bandwidth demands, wanting to avoid large upfront expense of the IRU

Solution Equivalent Mbs

per Month

Satellite $5000 - $1000

Telkom / SAT 3 (JHB/CPT to beach) $1375 - $500

EASSy (from the beach to Sudan) $200

Seacom (PoP to PoP) $45

Indefeasible Rights of Use (IRU) Service Int’l Private Leased Circuit (IPLC) Service

Volume DiscountsCompetitive Pricing

SEACOM’s comprehensive service offering includes IRU pricing at ~ 80% discount of current lease prices on SAT-3

Services & Pricing

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RFCS prices will be significantly lower that the current market price but additionally, SEACOM further discounts pre-RFCS purchases

SEACOM pricing maintains the current wholesale market structures

Pre-Jan 2009 Cost per Megabit per month Cost per STM-1

STM-1 (155Mbs) $117 $4 350 000

STM-4 (622Mbs) $99 $3 697 500

STM-16 (2.5Gbs) $75 $2 773 125

STM-64 (10Gbs) $45 $1 663 875

Post-Jan 2009 Cost per Megabit per month Cost per STM-1

STM-1 (155Mbs) $134 $5 000 000

STM-4 (622Mbs) $114 $4 250 000

STM-16 (2.5Gbs) $86 $3 187 500

STM-64 (10Gbs) $51 $1 912 500

Services & Pricing

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India serves as the case in point, after public investment and facilitation of key components of economic growth, India is respected as an example to aspire towards

Infrastructure Benefits

Bandwidth Market

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The latency on the SEACOM system of 76 msec is significantly better than satellite’s of 300 msec

SEACOM: Mtunzini to Marseille = 76msec

SEACOM: Dar Es Salaam to Marseille 51msec

SEACOM: Dar Es Salaam to Marseille 51msec

Sesimbra Chimpioni Alta Vista Dakar Abidjan Accra Cotonou Lagos Douala Libreville Cacuaco MelkkbosstrandSesimbra PortugalChimpioni Spain 3Alta Vista Canary 8 7Dakar Senegal 17 20 24Abidjan Cote d'Iv 29 32 36 45Accra Ghana 35 35 39 48 60Cotonou Benin 87 90 95 104 116 56Lagos Nigeria 87 90 94 103 116 55 54Douala Cameroon 84 87 92 101 113 53 52 51Libreville Gabon 83 86 90 99 112 51 50 50 47Cacuaco Angola 78 81 85 94 106 46 45 45 42 40Melkkbosstrand RSA 60 63 68 77 89 28 27 27 24 23 18

Mtunzini Maputo Toliary Dar es Salaam Mombasa Mumbai Fujairah Djibouti MarseilleMtunzini RSAMaputo Mozambique 4Toliary Madagascar 10 7Dar es Salaam Tanzania 22 18 11Mombasa Kenya 19 22 14 3Mumbai India 48 44 37 26 29Fujairah UAE 63 59 52 41 44 14Djibouti Djibouti NA NA NA NA NA NA NAMarseille France 76 79 71 60 57 46 61 31

Microsoft Excel Worksheet

SAT-3: Melkkbosstrand to Sesimbra = 60msec

Satellite: = 300 msec

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The evolution of the Internet is going to 3D, Second life is a 3D social networking site on which over $1 million worth of transactions take place everydayThe Gartner Research Group estimates that 2.7 billion people will be on social networking sites such

as Second Life by 2010. To work, 3D streaming requires high capacity IP networks

• Successful technologies operate in harmony with the human spirit

• The following institutions are using Second Life to communicate to the public:• The German Parliament

streams every session on Second Life

• IBM does factory tours on Second Life

• Toyota has virtual test drives on Second Life

• ABN AMBRO does retirement planning on Second Life

• Some major Universities are moving virtual education to Second LifeEnabling Access to

Web 2.0 Content

Bandwidth Market

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Today’s broadband users have to cope with poor contention ratios when accessing international content

There are approximately 1 million broadband end users in SA (DSL and 3G) with an average access rate of ~0.5 Megabit per second:

A 1:1 contention ratio would require 500 Gbs of international capacity from SA

A 20 to 1 contention ratio would require 25 Gigabits per second of international capacity for SA

However, it is estimated that SA utilizes 10 Gigabits per second for broadband end users resulting in a 50:1 contention ratio

Future demand will be pushed by: Growing broadband subscribers Faster access rates through improved

technology Lower contention ratios driven by market

competition

Contention Ratios and the Broadband User

50 Gbs Required to EuropeCurrent size, 10Gbs

South Africa Today

1 million users, 1 Mbs each

Ideal Contention Ratio of 20:1, Actual Contention Ratio is 50:1

Bandwidth Market

Contention Ratios and the Broadband User

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TANZANIA SPECIFIC

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SEACOM guarantees affordable Tanzanian terminations and provides international terminations over a global network

SEACOM Tz will make available an Open-Access landing station for the SEACOM Cable at Silver Sands

Backhaul will be made available to clients through national carriers

SEACOM offers customised onward connectivity to anywhere in the world

South African Network Topography

Services & Pricing

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KENYA SPECIFIC

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SEACOM guarantees affordable Tanzanian terminations and provides international terminations over a global network

SEACOM Ke will make available an Open-Access landing station for the SEACOM Cable in Mombasa

Backhaul will be made available to clients through national carriers

SEACOM offers customised onward connectivity to anywhere in the world

South African Network Topography

Services & Pricing

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MOZAMBIQUE SPECIFIC

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SEACOM guarantees affordable Mozambique terminations and provides international terminations over a global network

An Open-Access landing station for the SEACOM Cable is based at Maputo

Backhaul will be made available to clients through national carriers

SEACOM offers customised onward connectivity to anywhere in the world

Mozambique Network Topography

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STAKEHOLDER SLIDES

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SEACOM’s diverse route across Egypt makes the cable more reliable than others

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