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We wish to update the Exchange of the following developments:

Proceedings in England

On 27 January 2006, Celcom instructed the remittance of the sum of USD232 million by telegraphic transfer to the English Court. Receipt of the same was confirmed by the Court on 31 January 2006. This payment was made under protest and with full reservation of Celcom’s rights. Solicitors for DeTe have confirmed that by reason of the payment into Court, the Order dated 13 January 2006 prohibiting Celcom from removing from England or Wales any of its assets located there, up to the value of USD232 million has ceased to have effect from 1 February 2006.

Proceedings in Singapore

On 29 December 2005, DeTe applied to enforce the Award in Singapore. On 11 January 2006, the Singapore High Court gave DeTe liberty to enforce the Award in Singapore (“the Order”) subject to Celcom’s right to apply to set aside the Order by 6 February 2006. DeTe also applied for a Mareva Injunction and the hearing of this application was fixed for 2 February 2006.

In view of the payment of the sum of USD232 million to the English Court, DeTe withdrew its application for a Mareva Injunction at the hearing on 2 February 2006. At the same hearing, the Judge also granted Celcom an extension of time until 27 February 2006 for the filing of an application to set aside the Order.

Financial and Operational Impact

The payment of the sum of USD232 million to DeTe through the English Court will result in the decline of TM Group's net tangible asset per share by RM0.26 from RM4.38 to RM4.12, per TM Group’s Consolidated Financial Results as at 30 September 2005.

There is no operational impact on TM Group arising from this payment to DeTe.


This Announcement is dated 3 February 2006.