CS Saudi Arabia will organize and lead a delegation of senior managers from prominent Saudi firms first to SuperComm in Atlanta (an approved FY99 International Buyer Program event), and then to the San Francisco Bay Area to meet with clients of EAC=s in San Francisco, Santa Clara, San Jose, Oakland and Novato.

The objective of the RTM will be to match U.S. firms with participating Saudi companies which can act as qualified agents, distributors, representatives, licensees, end users, and joint venture partners primarily in the fields of voice, data, and video communications and networks. The introduction of the Internet into Saudi Arabia in early 1999, and the substantial on-going expansion of Saudi Arabia=s land-line, cellular, and satellite telephone systems, are expected to present especially good opportunities for U.S. exporters in these fields. The delegation will be led by long-time San Francisco Bay Area resident Richard Lyster, now Principal Commercial Officer in Dhahran, Saudi Arabia.

This RTM will take place within the following context:

1. The low price of oil is causing the Saudi government to move faster toward privatization and is prompting the private sector to redouble its efforts to diversify away from oil-related industries. The newly privatized Saudi Telecommunications Company (STC) had an initial capitalization of $2.7 billion.

2. With Lucent Technologies of the U.S. leading the effort, STC is now in the midst of a $4+ billion project (TEP-6) which will add 1.7 million telephone lines and 10,000 KM=s of fiber optic cable in Saudi Arabia. STC intends to continue its aggressive growth program, with TEP-7 and TEP-8, which will add another 2.7 million more phone lines. In addition, STC has awarded contracts to Lucent and others to replace 1.4 million lines of older technology equipment. Along with the increase in phone lines is coming upgrades in network management, engineering, customer service and information systems.

3. Mobile telephone expansion projects continue, with the current number of 550,000 mobile telephone users to grow to 1.1 million by October 1999.

4. The Internet, which is expected to come to Saudi Arabia by March or April 1999, will lead to rapidly increasing demand for computer hardware and software, and a wide range of communications products and services. About three dozen ISPs will be in the Kingdom initially, and it is expected that at least 6-10 of them will join the delegation.

5. The Saudi paging network, which uses the European Radio Messaging (ERMES)

protocol, has a capacity of 200,000 users. FLEX protocols, which are more powerful and flexible, will gradually replace ERMES technology.

6. Wireless communications through Wireless Local Loop technology (WLL) will replace wirelines from the local exchange to customers’ telephones with radio link, especially in rural areas. In addition to radio link, the Saudi government has also approved VSAT (Very Small Apertures Terminal), another wireless service which is used in the establishment of small multi-terminal wireless stations.

To generate U.S. exports by matching U.S. companies (including new-to-market and new-to-export U.S. companies) with Saudi companies in an effort to create new agent, distributor, representative, licensee, end user, and joint venture relationships.

The RTM will arrive in Atlanta, Georgia on June 5, 1999. Delegates will visit SuperComm 99 at the Georgia World Congress Center in Atlanta from Sunday, June 6 through Friday, June 11. At SuperComm 99, the delegates will have access to the international buyer center and USDOC staff which will enable them to facilitate contact with perspective U.S. business partners. The RTM will travel to San Francisco over the June 12-13 weekend, and meet with Bay Area EAC clients in San Francisco on Monday, June 14 and in Santa Clara on Tuesday, June 15. The RTM will conclude the evening of June 15.

Delegate recruitment will begin March 1, 1999 and conclude on May 2, 1999 - five weeks before SuperComm and six weeks before the EAC client meetings in the Bay Area. This will provide ample time for the EAC=s to promote the RTM to their clients and schedule meetings.

The three Commercial Service Saudi Arabia offices (Riyadh, Jeddah and Dhahran) will recruit no more than 30 Saudi company participants in the fields of voice, data and video communications and networks. Recruitment will be based on payment of a $750 fee; timeliness of submission of a completed application; and the company’s potential for doing business with U.S. firms in line with mission goals.

Selection of U.S. companies to meet with the Saudi Reverse Trade Mission members will be based on the marketability of their goods and services in Saudi Arabia, and the match of the company’s business with RTM goals. In following Departmental participation guidelines, companies must certify that their goods and services are either manufactured or produced in the United States or if manufactured or produced outside, they must certify that the goods and services are marketed under the name of a U.S. firm and that the final product has at least 51% U.S. content.

Recruitment of U.S. firms to meet with the Saudi RTM will be conducted in an open and public manner, including publication of the Mission Statement on the Internet and in the Federal Register; promotion through the Commerical Service network; press releases; and direct contact with trade associations and companies in the communications industry.

Any partisan political activities (including political contributions) of a U.S. firm seeking to meet the members of the Reverse Trade Mission are entirely irrelevant to the selection process.

Richard Lyster

American Consulate General Dhahran, Saudi Arabia

Unit 66803

APO AE 09858-6803

Phone: 966 3 891-3200

Fax: 966 3 891-8332

Email: Rlyster@cs.doc.gov

RJ Donovan

U.S. Export Assistance Center

5201 Great American Parkway, #456

Santa Clara, CA 95054

Phone: 408 970-4610

FAX: 408 970-4618

Email: RJ.Donovan@mail.doc.gov

Moira Jacobs

U.S. Export Assistance Center

250 Montgomery Street, 14th Floor

San Francisco, CA 94104

Phone: 415 705-2304

Fax: 415 705-2297

Email: Moria.Jacobs@mail.doc.gov

Jennifer Wickland

U.S. Export Assistance Center

101 Park Center Plaza, #1001

San Jose, CA 95113

Phone: 408 271-7300

Fax: 408 271-7307

Email: Jennifer.Wickland@mail.doc.gov