TURKCELL ILETISIM HIZMETLERI A.S. Reports Results for the First Quarter 2007

ISTANBUL, Turkey, May 9 /PRNewswire-FirstCall/ -- Turkcell , (http://www.turkcell.com.tr/), the leading provider of mobile communications services in Turkey, today announced results for the first quarter ended March 31, 2007. All financial results in this press release are unaudited, prepared in accordance with International Financial Reporting Standards ("IFRS") and expressed in US$.(1)

Beginning this quarter, we will provide a year on year comparison of our key indicators because we believe it provides a more complete picture of our performance for the reader. We are making this change mainly on the basis of more stable macro economic environment in Turkey and to eliminate the effects of seasonality in quarter on quarter analysis. In this press release figures in parentheses following the operational and financial results for the first quarter 2007 refer to the same item in the first quarter of 2006. For further details, please refer to our consolidated financial statements and notes for the quarter ended March 31, 2007 which can be accessed via our web site in the investor relations section (http://www.turkcell.com.tr/).

Highlights of the Quarter

- Revenue increased by 14% on an annual basis to US$1.3 billion (US$1.1 billion) in the first quarter of 2007

- Turkcell recorded an EBITDA(*) margin of 40% in the first quarter of 2007

- Net income increased 45% on an annual basis to US$272.1 million (US$187.2 million) due to a continued strong operational performance

- Turkcell's subscriber base grew by 12% on an annual basis to 32.2 million (28.7 million) as of March 31, 2007

- Minutes of usage per subscriber ("MoU") in the first quarter of 2007 increased on an annual basis by 9% to 63 minutes (58 minutes)

- Turkcell recorded average revenue per user ("ARPU") of US$12.1 (US$12.2) in the first quarter of 2007 despite depreciation of TRY against USD of 6% during the period

- Astelit, Turkcell's Ukrainian subsidiary, recorded encouraging results with 150% increase in revenue on an annual basis

(*)EBITDA is a non-GAAP financial measure. See page 10 for the reconciliation of EBITDA to net cash used for operating activities.

Comments from the CEO, Sureyya Ciliv

"I am very pleased that we delivered a quarter of strong growth where revenue increased 14% and net income increased 45% over the same period last year. Our customers responded well to our best value offers and to our marketing campaigns.

The number of new subscriptions was a new record for any first quarter. Despite a slow start in January due to the introduction of a new dealer incentive program, we have built strong momentum in customer acquisitions through the quarter.

I am also pleased about the business performance of our international operations and especially the progress made in our subsidiary in Ukraine.

I thank all of the Turkcell employees and business partners for their hard work, dedication and focus on customer satisfaction. I congratulate them all for a successful quarter. "

OVERVIEW OF THE QUARTER

During the first quarter of 2007, the stability in the Turkish macro economic environment continued. However, there have been important developments in the political sphere in Turkey recently, due to the upcoming elections. These developments may result in potential political and economical uncertainties during the forthcoming months which we will monitor closely.

The growth in the Turkish GSM market continued in first quarter of 2007, to an extent driven by some aggressive acquisition campaigns introduced by our competitors. We maintained our leading position in the market while maintaining our value focus and sustaining a balance with our revenue goals despite an increasing competitive environment.

In line with our vision "to ease and enrich the lives of our subscribers", we communicated our value propositions to our customers, sales network and dealers. We promoted the quality and reliability of our network, the range of our different value offers, the variety and convenience of our services and the additional benefits of being a Turkcell customer.

During this period, we continued to focus on customer satisfaction and loyalty, mainly targeting youth, premium and corporate segments, as well as encouraging higher usage through introducing voice, SMS and data packages, and continuing with our customized offers and campaigns. We also continued to design attractive campaigns providing additional co-branded benefits to emphasize our value propositions to our youth club and professionals club members. Furthermore, during this period, we introduced several actions to attract postpaid subscriptions as a result, expanding our postpaid subscriber base and usage amongst these subscribers.

Overall in our market, we can conclude that we have seen continued trends from our competitors towards a more rational competitive environment through upward price adjustments and more chargeable minute campaigns despite more aggressive acquisition offers.

With regard to developments in the regulatory environment, the Telecommunications Authority recently announced the tender conditions for granting of the 3G Licenses in Turkey; to be held on May 25, 2007.

Financial and Operational Review of First Quarter 2007

The following discussion focuses principally on the developments and trends in our business in the first quarter of 2007. Selected financial information for the first quarter of 2006, fourth quarter of 2006, full year 2006 and first quarter of 2007 are also included at the end of this press release.

Macro environment Information Q1 2007- Q1 2007- Q1 Q4 Q1 Q1 2006 Q4 2006 2006 2006 2007 % Chg % Chg TRY / US$ rate Closing Rate 1.3427 1.4056 1.3801 2.8% (1.8%) Average Rate 1.3252 1.4538 1.4024 5.8% (3.5%) INFLATION CPI 1.3% 2.8% 2.4% - - PPI 2.5% 0.1% 1.9% - -

The Turkish economy has been enjoying solid and stable growth in the last few years. However, there have been recent developments in the political environment that may result in potential political and economical uncertainties in the forthcoming quarters. Turkcell maintains its cautious stance primarily due to high uncertainty in local politics and concerns in the economy. We closely monitor the financial and political agenda in this volatile environment. We pay significant attention to liquidity and currency risks in line with our treasury management policies.

Financial Review Q1 2007- Q1 2007- Profit & Loss Statement Q1 Q4 Q1 Q1 2006 Q4 2006 (million US$) 2006 2006 2007 % Chg % Chg Total revenues 1,132.2 1,203.3 1,294.8 14.4% 7.6% Direct cost of revenues (667.4) (662.0) (686.0) 2.8% 3.6% Depreciation and amortization 196.8 164.9 188.7 (4.1%) 14.4% Administrative expenses (41.3) (29.2) (52.4) 26.9% 79.5% Selling and marketing expenses (206.1) (211.8) (231.7) 12.4% 9.4% EBITDA 414.3 465.2 513.3 23.9% 10.3% EBITDA Margin 37% 39% 40% - - Financial expense (20.2) (42.0) (51.1) 153.0% 21.7% Financial income 53.6 63.0 76.7 43.1% 21.7% Net finance income 33.4 21.0 25.6 (23.4%) 21.9% Share of profit of associates 15.8 16.3 17.7 12.0% 8.6% Income tax expense (87.4) (52.0) (100.6) 15.1% 93.5% Net income 187.2 289.6 272.1 45.4% (6.0%)

Revenue: Our revenues increased by 14% to US$1,294.8 million compared to the same quarter of 2006 on the back of an increasing subscriber base and usage, increase in tariffs as well as the contribution of our consolidated subsidiaries despite the depreciation of TRY against US$.

Direct cost of revenue: Direct cost of revenues, including depreciation and amortization, remained almost stable at US$686.0 million. Direct cost of revenues did not increase parallel to revenues mainly due to the change in the gross revenue definition as of March 10, 2006 that resulted in a decrease in treasury share fee expenses.

Depreciation and amortization decreased to US$188.7 million in the first quarter of 2007 compared to US$196.8 million in the first quarter of 2006 mainly due to the fully depreciated assets and depreciation of TRY against US$.

Interconnection costs also decreased year on year by 8% to US$83.0 million due to the revision of call termination rates and the depreciation of TRY against US$.

Selling and marketing expenses: Selling and marketing expenses in the first quarter of 2007 increased by 12% on an annual basis to US$231.7 million through higher marketing campaign costs and investments in channel in line with trends in the competitive environment. The proportion of selling and marketing expenses to revenue remained stable at 18%.

Administrative expenses: The year on year increase in administrative expenses was mainly due to consultancy expenses related to the investment opportunities and administrative expenses as a proportion of revenue remained stable at 4%.

Compared to the fourth quarter of 2006, the increase was due to a one time reversal recorded in the fourth quarter of 2006 regarding the income accrual of approximately US$15.5 million recognized for the success fee previously paid to BNP Paribas for Irancell.

Share of profit of equity accounted investees: In the first quarter of 2007, our equity in net income of unconsolidated investees increased to US$17.7 million compared to US$15.8 million the first quarter of 2006 mainly due to solid operational growth in our Fintur operations.

Net finance income: As a result of an increasing cash balance and interest rates, financial income increased to US$76.7 million. On the other hand, our finance expense increased to US$51.1 million mainly due to the foreign exchange loss on foreign currency assets and transactions.

Overall, our net financing income decreased by 23% to US$25.6 million compared to the same quarter of 2006.

Income tax expense: The total taxation charge in the first quarter of 2007 increased by 15.1% year on year to US$100.6 million mainly due to increase in profit before tax and decrease in deferred tax benefit recognized from investment incentive allowance as a result of the decrease in corporate tax rate from 30% to 20%.

Out of the total tax charge, US$114.3 million was related to current tax charges in the first quarter of 2007 and deferred tax income of US$13.7 million was realized during the quarter.

Q1 2007- Q1 2007- Income tax expense Q1 2006 Q4 2006 Q1 Q4 Q1 (million US$) 2006 2006 2007 % Chg % Chg Current Tax expense (69.5) (64.2) (114.3) 64.5% 78.0% Deferred Tax expense (17.9) 12.2 13.7 176.5% 12.3% Income Tax expense (87.4) (52.0) (100.6) 15.1% 93.5%

EBITDA: EBITDA in the first quarter of 2007 increased by 24% year on year to US$513.3 million due to increase in revenues and decrease in Treasury Share fee expenses and interconnection costs. Consequently, EBITDA margin increased to 40% for the first quarter of 2007.

Net income: We recorded 45% annual growth in net income to US$272.1 million in the first quarter of 2007 mainly due to the improved EBITDA.

Total Debt: Our consolidated debt amounted to US$579.2 million as of March 31, 2007. Of this total amount, US$462.7 million was related to our Ukraine operations.

Consolidated Cash Flow Q1 Q4 Q1 (million US$) 2006 2006 2007 Net cash provided by operating 98.1 729.5 343.5 activities Net cash used for investing (113.4) (135.1) (17.6) activities Net cash provided by/(used for) 196.5 (41.7) (56.6) financing activities Cash Balance 1,000.3 1,598.6 1,862.7

Cash Flow Analysis: Our net cash flow from operating activities increased to US$343.5 million in the first quarter of 2007 mainly resulting from the increase in net income in the first quarter due to strong operational performance.

In the first quarter of 2007, net cash used for investing activities decreased to US$17.6 million mainly resulting from interest and dividends received.

Capital expenditures in the first quarter of 2007 amounted to US$130.0 million of which US$50.0 million was related to our Ukrainian operations.

Consequently, our cash position at the end of the first quarter of 2007 reached US$1,862.7 million.

Operational Review Q1 2007- Q1 2007- Summary of Q1 Q4 Q1 Q1 2006 Q4 2006 Operational Data 2006 2006 2007 % Chg % Chg Number of total subscribers (million) 28.7 31.8 32.2 12.2% 1.3% Number of post-paid subscribers (million) 5.5 5.8 5.9 7.3% 1.7% Number of pre-paid subscribers (million) 23.2 26.0 26.3 13.4% 1.2% ARPU (Average Monthly Revenue per User), blended (US$) 12.2 11.8 12.1 (0.8%) 2.5% ARPU, postpaid (US$) 30.5 31.1 32.2 5.6% 3.5% ARPU, prepaid (US$) 7.9 7.5 7.6 (3.8%) 1.3% Churn (%) 3.5 4.4 5.1 - - MOU (Average Monthly Minutes of usage per subscriber), blended 57.9 74.1 62.8 8.5% (15.2%)

Subscribers: Our subscriber base grew by 12% on an annual basis and reached 32.2 million as of March 31, 2007. We added approximately 484,000 net new subscribers in the first quarter of 2007. New gross subscribers acquired in the first quarter of 2007 consisted of 87% prepaid subscribers and 13% postpaid subscribers ensuring an increase in terms of the percentage of postpaid subscriber acquisitions overall.

Churn Rate: Churn refers to disconnected subscribers, whether disconnected voluntarily or involuntarily. In the first quarter of 2007, we recorded a churn rate of 5.1% mainly due to prepaid involuntary churn triggered by high acquisition campaigns in the market in the third quarter of 2006.

MoU: Our blended minutes of usage per subscriber ("MoU") in the first quarter of 2007 increased on an annual basis by 9% to 63 minutes mainly due to our segment based offers.

ARPU: Our blended average revenue per user ("ARPU") remained at almost stable levels of US$12.1 compared to the same quarter in 2006. This stability was mainly due to price adjustments and increased usage despite a 6% depreciation of TRY against US$ and dilutive impact of growing prepaid subscriber base during this period.

International Operations Fintur

We hold a 41.45% stake in Fintur and through Fintur we hold interests in GSM operations in Kazakhstan, Azerbaijan, Moldova, and Georgia.

FINTUR as of March 31, 2007 Subscriber Revenue (mio) (US$ mio) Kazakhstan 3.9 163.1 Azerbaijan 2.5 88.3 Moldova 0.5 11.4 Georgia 1.1 34.9 TOTAL 8.0 297.7

Fintur's operations recorded growth in revenues on annual basis during the first quarter of 2007 and consolidated revenues of Fintur reached US$297.7 million as of March 31, 2007. Fintur added approximately 0.7 million net new subscribers in the first quarter of 2007.

We account for our investment in Fintur using the equity method. Fintur's contribution to income was US$22.1 million (US$15.8 million) in the first quarter of 2007.

Ukraine

Astelit, in which we hold a 55% stake through Euroasia, has operated in Ukraine since February 2005 under the brand "life:)".

During the first quarter of 2007;

- Astelit continued to achieve encouraging results through growing its revenue by 150% on annual basis.

- Astelit's operational indicators have remained very strong with subscribers at 5.8 million

- 3 months active subscriber base has reached 60% levels - 3 month active ARPU increased by 55% on annual basis. Q1 Q4 Q1 Summary Data for Astelit 2006 2006 2007 Number of subscribers (million) Total 3.3 5.6 5.8 Active (3 months)(2) 2.2 3.1 3.5 Average Revenue per User (ARPU) in US$ Total 2.0 2.0 2.5 Active (3 months) 2.7 4.1 4.2 Revenue 17.1 30.5 42.8 EBITDA(3) (17.7) (26.5) (16.5) Net Loss (55.9) (29.9) (44.9) Capex 55.7 83.3 50.0

In December 2005, a long term financing package was obtained by Astelit amounting to US$540 million that consisted of a syndicated senior loan (US$390 million) and a junior loan (US$150 million). As of March 31, 2007, approximately US$369 million of the senior syndicated facility was utilized. In 2006, Astelit started discussions with the lenders of the senior syndicated facility and proposed it's restructuring and notified that Turkcell shall purchase the loans and commitments held by lenders that do not consent to the restructuring proposal. As of today, it is likely that we will take over the majority of the syndicated senior loan amounting to US$369 million and the restructuring is expected to be finalized in the third quarter of 2007. Astelit intends to refinance this debt to Turkcell within the next 18 months, depending on the market conditions and its performance.

Reconciliation of Non-GAAP Financial Measures

We believe that EBITDA is a measure commonly used by companies, analysts and investors in the telecommunications industry, which enhances the understanding of our operating results and assists in the evaluation of our capacity to meet our financial obligations. We also use EBITDA as an internal measurement tool and, accordingly, we believe that the presentation of EBITDA provides useful and relevant information to analysts and investors.

Beginning from the 2006 fiscal year, we have revised the definition of EBITDA which we use and we report EBITDA using this new definition starting from the first quarter of 2006 results announcement to provide a new measure to reflect solely cash flow from operations.

The EBITDA definition used in our previous press releases and announcements had included Revenues, Direct Cost of Revenues excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses, translation gain/(loss), financial income, income on unconsolidated subsidiaries, gain on sale of investments, income/(loss) from related parties, minority interest and other income/(expense). Our new EBITDA definition includes Revenues, Direct Cost of Revenues excluding depreciation and amortization, Selling and Marketing expenses and Administrative expenses, but excludes translation gain/(loss), financial income, income on unconsolidated subsidiaries, gain on sale of investments, income/(loss) from related parties, minority interest and other income/(expense).

EBITDA is not a measure of financial performance under IFRS and should not be construed as a substitute for net earnings (loss) as a measure of performance or cash flow from operations as a measure of liquidity.

The following table provides a reconciliation of EBITDA, which is a non-GAAP financial measure, to net cash provided by operating activities, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS.

TURKCELL Q1 Q1 2007-Q1 2007-Q4 US$ million Q1 Q4 Q1 2006 2006 2006 2006 2007 % Chg % Chg EBITDA 414.3 465.2 513.3 23.9% 10.3% Other operating (2.0) (0.4) 1.0 (150.0%) (350.0%) income/(expense) Financial income 53.6 63.0 76.7 43.1% 21.7% Financial expense (20.2) (42.0) (51.1) 153.0% 21.7% Net increase (347.6) 243.7 (196.4) (43.5%) (180.6%) (decrease) in assets and liabilities Net cash provided by 98.1 729.5 343.5 250.2% (52.9%) operating activities EUROASIA Q1 Q1 2007-Q1 2007-Q4 US$ million Q1 Q4 Q1 2006 2006 2006 2006 2007 % Chg % Chg EBITDA (17.7) (26.5) (16.5) (6.8%) (37.7%) Other operating (1.3) (0.3) - - - income/(expense) Financial income 0.1 0.2 0.3 200.0% 50.0% Financial expense (15.1) (2.8) (9.8) (35.1%) 250.0% Net increase 22.2 46.9 22.8 2.7% (51.4%) (decrease) in assets and liabilities Net cash provided by (11.8) 17.5 (3.2) (72.9%) (118.3%) operating activities Turkcell Group Subscribers

We have approximately 40.2 million proportionate GSM subscribers as of March 31, 2007. This is calculated by taking the number of GSM subscribers in Turkcell and each of our subsidiaries and multiplying the number of unconsolidated investees by our percentage ownership interest in each subsidiary. This figure includes the proportionate rather than total number of Fintur's GSM subscribers however, includes the total number of GSM subscribers in Ukraine and in our operations in Turkish Republic of Northern Cyprus ("Northern Cyprus") because the financial statements of our subsidiaries in Ukraine and Northern Cyprus are consolidated with Turkcell's financial statements.

Q1 Turkcell Group Subscribers Q1 Q4 Q1 2007-Q4 Q1 2007-Q1 2006 % (million) 2006 2006 2007 2006 % Chg Chg Turkcell 28.7 31.8 32.2 12.2% 1.3% Ukraine 3.3 5.6 5.8 75.8% 3.6% Fintur (pro rata) 1.5 1.8 1.9 26.7% 5.6% Northern Cyprus 0.2 0.2 0.3 50.0% 50.0% TURKCELL GROUP 33.7 39.4 40.2 19.3% 2.0% Forward-Looking Statements

This release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, including, without limitation, certain statements regarding our operations, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as, among others, "may," "will," "expect," "intend," "plan," "estimate," "anticipate," "believe" or "continue."

Although Turkcell believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to be correct. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by reference to these cautionary statements.

http://www.turkcell.com.tr/ ABOUT TURKCELL

Turkcell is the leading GSM operator in Turkey with 32.2 million postpaid and prepaid customers as of March 31, 2007 operating in a three player market with a market share of approximately 60% as of December 31, 2006 (Source: The Telecommunications Authority). In addition to high-quality wireless telephone services, Turkcell currently offers General Packet Radio Service ("GPRS") countrywide and Enhanced Data Rates for GSM Evolution ("EDGE") in dense areas, which provide for both improved data and voice services. Turkcell provides roaming with 548 operators in 193 countries as of May 4, 2007. Serving a large subscriber base in Turkey with its high-quality wireless telephone network, Turkcell reported US$1,295 million net revenues as of March 31, 2007 and US$4,700 million net revenues as of December 31, 2006 as per IFRS financial statements. Turkcell has interests in international GSM operations in Azerbaijan, Georgia, Kazakhstan, Moldova, Northern Cyprus and Ukraine. Turkcell has been listed on the NYSE ("New York Stock Exchange") and the ISE ("Istanbul Stock Exchange") since July 2000 and is the only NYSE listed company in Turkey. 51.00% of Turkcell's share capital is held by Turkcell Holding, 7.46% by Cukurova Group, 13.07% by Sonera Holding, 5.07% by M.V. Group and 0.01% by others while the remaining 23.39% is free float.

TURKCELL ILETISIM HIZMETLERI A.S. SELECTED FINANCIALS Quarter Quarter Year Quarter Ended Ended Ended Ended March 31, December December March 2006 31,2006 31,2006 31,2007 Consolidated Statement of Operations Data Revenues Communication fees 1,047.6 1,128.9 4,406.7 1,193.3 Commission fees on betting business 60.0 38.9 172.4 58.2 Monthly fixed fees 13.9 15.8 57.6 12.6 SIM card sales 5.8 6.0 21.0 6.9 Call center revenues and other revenues 4.9 13.7 42.6 23.8 Total revenues 1,132.2 1,203.3 4,700.3 1,294.8 Direct cost of revenues (667.4) (662.0)(2,627.9) (686.0) Gross profit 464.8 541.3 2,072.4 608.8 Administrative expenses (41.3) (29.2) (154.9) (52.4) Selling & marketing expenses (206.1) (211.8) (827.5) (231.7) Other operating income / (expense) (2.0) (0.4) 1.6 1.0 Operating profit before financing costs 215.4 299.9 1,091.6 325.7 Financial expense (20.2) (42.0) (108.0) (51.1) Financial income 53.6 63.0 184.0 76.7 Share of profit of associates 15.8 16.3 78.6 17.7 Income before taxes and minority interest 264.6 337.2 1,246.2 369.0 Income tax expense (87.4) (52.0) (413.2) (100.6) Income before minority interest 177.2 285.2 833.0 268.4 Minority interest 10.0 4.4 42.5 3.7 Net income 187.2 289.6 875.5 272.1 Net income per share 0.085084 0.131651 0.397951 0.123699 Other Financial Data Gross margin 41% 45% 44% 47% EBITDA(*) 414.3 465.2 1,820.0 513.3 Capital expenditures 137.7 210.7 604.8 130.0 Consolidated Balance Sheet Data (at period end) Cash and cash equivalents 1,000.3 1,598.6 1,598.6 1,862.7 Total assets 5,576.7 6,089.7 6,089.7 6,488.1 Long term debt 16.2 113.5 113.5 116.0 Total debt 830.6 639.6 639.6 579.2 Total liabilities 1,696.2 1,971.8 1,971.8 2,434.7 Total shareholders' equity / Net Assets 3,880.6 4,118.0 4,118.0 4,053.3 Consolidated Cash Flow Information Net cash provided by operating activities 98.1 729.5 1,854.9 343.5 Net cash used in investing activities (113.4) (135.1) (632.5) (17.6) Net cash used in financing activities 196.5 (41.7) (395.8) (56.6) (*) Please refer to the notes on reconciliation of Non-GAAP Financial measures on page 10.

(1) Please note that all financial data is consolidated and comprises of Turkcell Iletisim Hizmetleri A.S., (the "Company", "Turkcell") and its subsidiaries and its associates (together referred to as the "Group"). All non-financial data is unconsolidated and comprise of Turkcell only. The terms "we", "us", and "our" in this press release refer only to the Company, except in discussions of financial data, where such terms refer to the Group, and where context otherwise requires.

(2) Active subscribers are those who in the past three months made a transaction which brought revenue to the Company.

(3) EBITDA is a non GAAP financial measure. See page 11 for the reconciliation of Astelit EBITDA to net cash used for operating activities