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On behalf of TM, we wish to announce that, on 7 June 2006, TMIL entered into an agreement with AIF

(Indonesia) Limited (“AIF”) to purchase 195,605,400 ordinary shares of Rp100 each in Excelcomindo (“AIF

Purchased Shares”), representing approximately 2.8% of the issued and paid-up share capital of

Excelcomindo from AIF for a cash consideration of USD39.7 million (approximately RM144.9 million at the

exchange rate prevailing on 6 June 2006 of USD1.00 : RM3.65).

On the same date, PT Rajawali Capital (formerly known as PT Telekomindo Primabhakti) (“Telekomindo”)

issued a letter to TMIL whereby it agreed that the AIF Purchased Shares are deemed to be part of the Later

Purchased Shares (as defined in our announcement dated 20 October 2005) acquired by TMIL from

Telekomindo in accordance with the Call and Put Option Agreement dated 11 January 2005, as

supplemented.

The acquisition of the AIF Purchased Shares will be completed on 12 June 2006. Upon the completion of

the acquisition of the AIF Purchased Shares, the TM group will have a 59.6% equity interest in

Excelcomindo.

This announcement is dated 7 June 2006.