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TM hereby wishes to announce that Inmiss’ solicitor has served Notices of Demand claiming the total amount of RM30,489,469.95 being their computation of the Arbitration Award and the cost thrown away, cost of the arbitration proceedings and solicitor client costs of the arbitration proceedings respectively. Further, on 14 April 2005 Mobikom has been served with a Notice of Demand pursuant to Section 218 of the Companies Act, 1965 (“S.218 Notice”) by Inmiss for an outstanding sum of RM27,422,142.51 which is due and owing by Mobikom as at 14 April 2005. As stated in the S. 218 Notice, Mobikom is required to pay the said debt failing which appropriate action will be taken by Inmiss for the winding-up of Mobikom.

Based on legal advice, TM will be filing the Notices of Applications to the High Court for an Injunction against Inmiss from commencing the filing of any petition for the winding-up of Mobikom, stay of execution of the Arbitration Award pending the hearing of the Mobikom’s appeal against the Arbitrator’s decision and setting aside of the Arbitration Award in due course.

TM wishes to reiterate that the S.218 Notice and the Arbitration Award as abovementioned will not have any material financial and operational impact on TM. TM will make further announcement of any material development on the above matter from time to time.