TM wishes to announce that it has on 24 February 2022, received a Notice of Arbitration (Notice) from MYTV, in regards to a dispute in relation to the Service Agreement for the provision of Digital Terrestrial Television (DTT) Broadcasting Infrastructure, Network Facilities and Related Services dated 14 November 2016 (Service Agreement). The arbitration will be held at the Asian International Arbitration Centre, Kuala Lumpur, pursuant to the Kuala Lumpur Regional Centre for Arbitration Rules.

MYTV is seeking the following reliefs:

1. Declaratory relief that TM is not entitled to be paid the amount of RM91,714,254.47 or any amounts claimed by TM under the Service Agreement;
2. Declaratory relief that the amount of RM38,000,000.00 paid by MYTV to TM under the Consultancy Agreement be accounted for and deemed as payment under the Service Agreement;
3. Declaratory relief that:
   • TM is not entitled to and wrongfully charged/invoiced MYTV, the Service Charges amounting to RM19,734,063.13 paid by MYTV to TM between 2016 and 2017; and
   • MYTV is entitled to and may deduct and/or set off the said amount together with all interest accrued thereon at the rate of 6% per annum from the dates of payment from any amounts that are or may be payable by MYTV to TM under the Service Agreement.
4. Declaratory relief that TM is not entitled to charge MYTV for any preparatory costs incurred by TM for or in relation to 16 unused DTT sites under the Service Agreement;
5. Declaratory relief that TM has fundamentally breached the Service Agreement and/or was negligent in failing to provide a complete redundant (1+1) Synchronous Transport Module Level 1 network to MYTV;
6. Damages of RM42,812,314.00 or otherwise to be assessed resulting from TM's failure to provide (1+1) redundancy for 14 exchange, Digital Multimedia Broadcasting Hub and DTT sites;
7. Damages to be assessed resulting from TM's failure to provide (1+1) redundancy for 6 DTT sites;
8. RM3,270,107.83 as liquidated ascertained damages for late delivery by TM of 14 DTT sites;
9. A declaration that TM's revisions to the Service Charges that were purportedly made to account for the reduction of the number of DTT sites delivered to 44 from the 60 initially contracted for under the Service Agreement are unilaterally imposed, unfair, not cost-based and/or excessive;
10. An independent assessment of and a declaration as to the fair and reasonable amount of reduced Service Charges that ought to be paid for the 44 DTT sites delivered by TM to MYTV under the Service Agreement and an account of all overpayments by MYTV to TM and/or damages to be assessed arising therefrom;
11. Damages to be assessed for MYTV's losses arising from TM's breach of the Service Agreement and/or negligence in relation to failures at 5 DTT sites;
12. P and post award interest; and
13. Further and/or other declarations and/or specific relief orders, as may be necessary, appropriate or just in the circumstances.

TM vigorously denies the aforesaid claims and allegations and has instructed its solicitors to take the necessary steps to defend the claim.

Further announcement will be made if there are any material developments in respect of this matter.

This announcement is dated 25 February 2022.

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