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We wish to inform the Exchange that Telekom Malaysia Berhad ("TM") has acquired 100% equity interest in Telekom Research & Development Sdn Bhd (formerly known as Telekom Laboratories Sdn Bhd) ("TM R&D"), a shelf company on 30 August 2000 at a purchase consideration of RM2.00.

DETAILS OF TM R&D

TM R&D is a private limited company incorporated on 1 July 1997 under the Companies Act, 1965. The authorised capital of the Company is RM50,000,000 comprising of 50,000,000 ordinary shares of RM1.00 each and its paid up capital is currently RM2.00 comprising of 2 ordinary shares of RM1.00 each.

TM R&D was acquired to undertake research and development activities, in the area of telecommunication and multimedia with a view to develop, enhance and upgrade all aspects of technology of new and/or existing product, system and services of TM and/or its group of companies.

FINANCIAL IMPACT

The said acquisition is not expected to have any immediate or material impact on the consolidated earnings of TM for the current financial year ending 31 December 2000 and the consolidated net tangible assets per share of TM.

DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTEREST

None of the Directors nor the substantial shareholders of TM have any interest, whether direct or indirect, in the abovesaid acquisition.