Second Quarter 2012 Results - Entel

Second Quarter 2012 ResultsAugust 6, 2012COMPAÑIA CHILENA DE TABACOS (Subsidiary of British American Tabacco Co.):this agreement will provide end user IT solutions including desktops and technical helpdesks with onsite support, in addition to IT service server operations.PODER JUDICIAL (Chilean Department of Justice): Entel will add to its current serviceagreement with over 40 new telecommunications links, in addition to 400 points alreadyin service.___________________________Network Rentals (including traffic business),Call Center and OthersRevenue DistributionRevenues were 19% higher in the quarter,combined with increased revenues in the low margintraffic business associated with higher wholesale10%traffic, partially offset by lower tariffs. Network14%Rentals revenue also expanded in infrastructure76%rentals to related parties and to other fixed andmobile operators. Early this year, the Companybegan to operate a roaming and transportNetwork rentals Call Center Othersagreement with Nextel Chile. Call center revenuerose in Perú and Chile driven by new clients and higher activity associated with the current clientbase.EBITDA reached Ch$ 25.6 billion, expanding 21% when compared to 2Q11, principally driven byhigher margins in the Network Rentals business to related companies and services provided to othermobile and fixed operators. Also, Call Center operations in Chile and Perú grew. EBITDA marginreached 42%, flat when compared to last year.In first half 2012, EBITDA was Ch$ 47.7 billion, 11% higher when compared to 2011. EBITDAmargin declined to 42% from the 43% reported in 2Q11.____________________________10