Contents :

We refer to the query from the Exchange dated 16 August 2005 and TM's announcement dated 12 August 2005 regarding the abovematter, and wish to clarify as follows:-

1. Todate, Mobikom has not yet been served with the winding-up petition.

2. The total cost of investment in Mobikom is RM380.8 million. TM has fully provided the investment cost in Mobikom against its Profit and Loss Accounts. As of 31 December 2004, the carrying amount of the investment in Mobikom is RM1.00.

3. The expected losses arising from the winding up proceedings is expected to be about RM30 million, including the cost of claims, court and other expenses.

Query Letter Contents :

We refer to your announcement dated 12 August 2005.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
The date the winding-up petition was served on MOBIKOM;
The interest rate for the amount claimed under the winding-up petition;
The total cost of investment in MOBIKOM; and
The expected losses, if any, arising from the winding-up proceedings.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully


LISA LAM
Sector Head
Issues & Listing
Group Regulations

LL/ASL/WCY