Contents :

On behalf of TM, we wish to announce that, on 20 October 2005, TMIL has exercised its call option requiring PT Telekomindo Primabhakti (“Telekomindo”) to sell its equity interest in Excelcomindo to TMIL. Telekomindo has informed TMIL that, as at 20 October 2005, it has not purchased the 719,137,500 ordinary shares of Rp100 each in Excelcomindo (“Excelcomindo Shares”) held by AIF (Indonesia) Limited (“Later Purchased Shares”). As such, a total of 2,265,002,500 Excelcomindo Shares (“Call Option Shares”) will be sold by Telekomindo to TMIL under the call option. The consideration for the Call Option Shares is USD460 million cash.

TMIL and Telekomindo have agreed that the acquisition by TMIL of the Call Option Shares shall be completed in two (2) tranches as follows:

(i) acquisition of 56,625,000 Excelcomindo Shares for USD11.5 million shall be completed on 20 October 2005; and

(ii) acquisition of the remaining 2,208,377,500 Excelcomindo Shares for USD448.5 million shall be completed on 27 October 2005.












On 4 August 2005, Excelcomindo undertook a share split where each of its ordinary share of par value Rp250,000 was split into 2,500 ordinary shares of par value Rp100 each. Subsequently, on 29 September 2005, Excelcomindo was listed on the Jakarta Stock Exchange. The listing exercise involved the issue of 1,427,500,000 new Excelcomindo Shares. Accordingly, the number of Excelcomindo shares comprised in the Later Purchased Shares and Call Option Shares on 11 January 2005 (being the date the Call and Put Option Agreement was signed) and after the share split and listing exercise are as follows:

[Please refer to the attachment to view the details]

With the TM Group’s existing equity interest in Excelcomindo of 25.0%, the completion of the acquisition of the Call Option Shares by TMIL will increase the TM Group’s equity interest in Excelcomindo to 56.9% whereupon, Excelcomindo would become a subsidiary of TM.

This announcement is dated 20 October 2005.