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Telekom Malaysia Berhad ("TM") hereby wishes to announce that a Notice of Demand under Section 218 of the Companies Act, 1965 dated 3 February 2005 ("S. 218 Notice") has been served on TM's wholly owned subsidiary, Celcom (Malaysia) Berhad ("Celcom") by Messrs. HK Ang & Partners, solicitors for Hondeal.

The S. 218 Notice purports to state that there is an undisputed debt of RM107,319.80 ("Debt") owing by Celcom to Hondeal being price of goods sold and delivered to Celcom by Hondeal. Celcom is required to pay the Debt within 21 days from the service of the S. 218 Notice. Celcom is currently in discussion with Hondeal for an amicable settlement.

The S. 218 Notice will not have any significant financial and operational impact on Celcom or TM.