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Telekom Malaysia Berhad (“TM”) wishes to announce that its wholly-owned subsidiary, TM International Leasing Incorporated (Company No. LL01790) (“TMI Leasing”) has commenced members' voluntary winding-up on 27 February 2006 (the "Winding-up") pursuant to Section 131(1) of the Offshore Companies Act 1990 applying Section 254(1) of the Companies Act, 1965.

Pursuant thereto, Mr. Chin Chee Kee of 1st Floor, Lot 7, Blok F, Saguking Commercial Building, Jalan Patau-Patau, 87000 Federal Territory of Labuan, Malaysia has been appointed as the Liquidator.

Information on TMI Leasing

TMI Leasing was incorporated as an offshore company in the Federal Territory of Labuan, Malaysia under the Offshore Companies Act 1990, on 25 August 1998 for the leasing business under Islamic principles (Al-Ijara).

Its authorised capital is USD100,000 comprising 100,000 ordinary shares of USD1.00 each, out of which 1,000 ordinary shares of USD1.00 each was fully paid-up and registered in the name of TM.

Rationale for the Winding-up

TMI Leasing was established to facilitate the 5-year US$60 million Ijara Facility that was undertaken in October 1998 from a consortium of offshore financial institutions. The decision was made to wind up TMI Leasing following the full prepayment of the said Ijara Facility on 25 April 2001.

Financial Effects of the Winding-up

The Winding-up of TMI Leasing will not have any material effect on TM Group.

Directors' and Substantial Shareholders' Interest

None of the Directors and Substantial Shareholders of TM or persons connected with them has any interest, direct or indirect, in the Winding-up of TMI Leasing.

Directors' Opinion on the Winding-up

The Directors of TM are of the opinion that the Winding-up is in the best interest of TM.