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Egypt's ruling military council said on Monday that the army will hold a ceremony to hand over power to the country's newly elected president at the end of June, the state news agency MENA reported.

Muslim Brotherhood candidate Mohammed Morsi claimed victory on Monday in Egypt's first free presidential election, as the military handed itself sweeping powers in a move denounced by activists as a "coup".

The Islamists' rival Ahmed Shafiq, a former air force chief and ex-prime minister to ousted president Hosni Mubarak, disputed the Brotherhood's victory announcement, labeling it "bizarre behavior".

"We reject it completely," Shafiq campaign official Mahmud Barakeh said to reporters about the Brotherhood's proclaimed victory.

A confirmed win by Morsi would mark the first time Islamists are elected to the presidency in the Arab world's most populous nation, but the military rulers' moves to consolidate power ahead of the final results have rendered any future president toothless.

State television has reported that initial counts showed Morsi in the lead.

There were scenes of jubilation at Morsi's headquarters, where the candidate himself thanked Egyptians for their votes in brief remarks after the Brotherhood said he had won 52 percent of the vote.

Morsi pledged to work "hand-in-hand with all Egyptians for a better future, freedom, democracy, development and peace".

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