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TM wishes to inform that Mobikom has on, 5 September 2005, been served with the said Winding-up Petition. The aforesaid Petition has been fixed for hearing on 21 October 2005.

In the said Petition, Inmiss claims that Mobikom is indebted to Inmiss in the sum of RM27,422,142.51 as at 14 April 2005 being the amount allegedly awarded in an Arbitration Award dated 31 March 2005, together with interest at the rate of eight percent (8%) per annum thereon. The said Petition was filed by Inmiss due to the alleged failure by Mobikom to pay this sum following the service of a statutory notice dated 14 April 2005, pursuant to Section 218 of the Companies Act, 1965, on Mobikom.

As stated in TM’s announcement on 11 August 2005, Mobikom has filed an appeal with the Court of Appeal against the High Court’s decision on 10 August 2005 dismissing Mobikom’s application with costs for an inter partes injunction to inter alia restrain Inmiss from presenting the said Winding-up Petition pending the disposal of Mobikom’s application to set aside the Arbitration Award dated 31 March 2005 in the High Court. A date for hearing of the said appeal has yet to be fixed.

In the meantime, Mobikom has on 15 August 2005 applied for another application to the Court of Appeal inter alia for a stay of the Winding-up Petition pending the hearing of the appeal as abovementioned under Section 44 of the Court of Judicature Act 1964. The said application was heard by the Court of Appeal on 5 September 2005. The Court of Appeal has fixed 7 September 2005 to deliver its decision in respect of the said application.

The total cost of investment of TM’s investment in Mobikom was RM 381 million, which has been fully provided for as at 31 December 2004. TM wishes to reiterate that the service of the Winding-up Petition by Inmiss against Mobikom and the appeal lodged by Mobikom at the Court of Appeal as abovementioned will not have any material financial and operational impact on TM. The expected losses, if any, arising from the winding-up proceedings is about RM 30 million, which mainly comprises cost of claim, court and other expenses.

TM will make further announcement of any material development on the above matter from time to time.