Commencement Of Litigation

28 April 2006

Type

Announcement
Subject COMMENCEMENT OF LITIGATION

Contents :

    Celcom (Malaysia) Berhad ("Celcom"), a wholly owned subsidiary of Telekom Malaysia Berhad,
    and Technology Resources Industries Berhad (“TRI”), a wholly owned subsidiary of Celcom, have
    today commence legal proceedings in the High Court of Malaya against certain of their former
    directors for breach of fiduciary and other duties owed as directors.


    The former directors of TRI/Celcom who are named in the suit are: (i) Tan Sri Dato’ Tajudin bin
    Ramli, (ii) Dato' Bistamam bin Ramli (iii) Dato’ Lim Kheng Yew (iv) Dieter Sieber (v) Frank-Reinhard
    Bartsch (vi) Joachim Gronau (vii) Joerg Andreas Boy (viii) Axel Hass and (ix) Oliver Tim Axmann
    (collectively referred to as “Defendants”).


    With respect to the persons at (iv) to (ix) above, TRI/Celcom have today filed an ex parte application
    for leave to issue and serve the Writ of Summons upon those former directors in Germany and/or
    Singapore in the manner required under the Rules of the High Court 1980.


    The breaches of duty complained of in the legal proceedings relate mainly to the entry into the
    Subscription Agreement dated 25 June 1996 (“Subscription Agreement”) between Deutsche
    Telekom AG and TRI and the Amended and Restated Supplemental Agreement dated 4 April 2002
    (”ARSA”) between Celcom, TRI, TR International Ltd and DeTeAsia Holdings GmbH (”DeTe”). The
    claim against Tan Sri Dato’ Tajudin bin Ramli also relates to unauthorised profits claimed to have
    been made by him in connection with the entry of TRI/Celcom into the Subscription Agreement and
    the ARSA.


    Celcom and TRI are seeking, inter alia, the following relief in the claim:

    (a) A declaration that the Defendants are liable to indemnify Celcom to the extent of all sums paid
    by Celcom to DeTe in satisfaction of an Award dated 2 August 2005 handed down by the Arbitral
    Tribunal in International Court of Arbitration of the International Chamber of Commerce Case No
    12615/MS instituted by DeTe against Celcom and all costs incurred thereof.


    (b) As against Tan Sri Dato’ Tajudin bin Ramli, for unauthorised profits made amounting to
    RM446,038,141.09.


    (c) An account of all monies received by the Defendants arising out of such breaches.

    (d) Loss and Damages to be assessed.


    This Announcement is dated 28 April 2006.


Announcement Info

Company Name TELEKOM MALAYSIA BERHAD
Stock Name TM
Date Announced 28 Apr 2006
Category General Announcement
Reference No TM-060428-61565