Contents :

• TM International Sdn Bhd (“TM International”) has entered into preliminary discussions with Samart Corporation Plc (“Samart”) to acquire 105 million shares in Samart I-Mobile Plc (“Samart I-Mobile”) representing 24.42% of the total issued and paid up share capital ("Proposed Acquisition"). The Proposed Acquisition is subject to further negotiations, a due diligence exercise and the approval of the Board of Directors of TM International as well as TM, and as such has not been finalised or completed.
  
  Samart I-Mobile is in the business of mobile phone distribution as well as a provider and developer of multimedia content. It is also a provider of advertising media, outsourcing services and billboard services.
  Presently, TM International has not entered into any contract to dispose of its shareholding in Samart.
Bursa Malaysia's query dated 27 December 2005 in respect of the following statements appearing in the New Straits Times, Business Times, page B1, on Saturday, 24 December 2005, refers:

“TM International Sdn Bhd…purchase…24.42 per cent stake in a Thailand mobile phone company…”

“Samart…had a contract with Telekom to buy back its own shares held by the Malaysian firm…”

With respect to the above statements, Telekom Malaysia Berhad ("TM") wishes to clarify as follows:-

1. TM International Sdn Bhd said its purchase of a 24.42% stake in a Thailand mobile company has not been finalised

2. Samart had a contract with Telekom to buy back its own shares held by the Malaysian firm

TM will announce further development on the above said Proposed Acquisition at the appropriate time.

Query Letter Contents :

We refer to the above news article appearing in the New Straits Times, Business
Times, page B1, on Saturday, 24 December 2005, a copy of which is enclosed for
your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"TM International Sdn Bhd...purchase ...24.42 per cent stake in a Thailand
mobile phone company..."
"Samart... had a contract with Telekom to buy back its own shares held by the
Malaysian firm..."
In accordance with the Securities Exchange's Corporate Disclosure Policy, you
are requested to furnish the Securities Exchange with an announcement for
public release confirming or denying the above article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such persons reasonably familiar with the matter
about which the disclosure is to be made in this respect. In the event you deny
the above sentences or any other part of the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above sentences or any other part of the
above reported article, you are required to set forth facts sufficient to
support the same.
Please furnish the Securities Exchange with your reply within one (1) market
day from the date hereof.
Yours faithfully

JOHAN ABDULLAH
Head, Issues & Listing
Group Regulations
TYE/NMA copy to:- Securities Commission (via fax)