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Kuala Lumpur High Court (Civil Division) Civil Suit No. S-22ncvc-42-2010 Ainb Tech (M) Sdn Bhd V Telekom Malaysia Berhad

05 January 2011

Type Announcement
Subject KUALA LUMPUR HIGH COURT (CIVIL DIVISION)
CIVIL SUIT NO. S-22NCVC-42-2010
AINB TECH (M) SDN BHD v TELEKOM MALAYSIA BERHAD
Contents On 3 January 2011, Telekom Malaysia Berhad (“TM”) was served with a Judgment in Default by AINB TECH (M) SDN BHD (“AINB”) dated 2 December 2010.
Based on the said Judgment, AINB has been awarded the following reliefs by the Court:-
  1. RM25 million being AINB’s expenses incurred for the purpose of a project known as “Supply, Delivery, Installation, Testing, Commissioning and Support of One Number Service” entered into between both parties (“the Project”);
  2. general damages to be assessed by the Court;
  3. interest at the rate of 5% per annum calculated from the date of the Judgment until the date of the full settlement;
  4. legal costs of RM225.00; and
  5. other relief as deemed fit by the Court.
TM has on the same day, appointed solicitors to act on its behalf in the above legal suit.

Based on the Writ of Summons dated 18 October 2010 which was obtained by TM’s appointed solicitors on 4 January 2011, AINB claims that TM, in breach of a letter of award dated 6 January 2006 and an agreement dated 27 February 2008, failed to perform its obligations under the Project. In particular, AINB alleges that TM had failed to promote the “One Number Service” product in a satisfactory manner resulting in AINB suffering estimated losses of RM25 million and exposing AINB to a legal suit by its project financier.

Based on legal advice, TM will be taking appropriate steps to set aside the Judgment in Default and resist any action by AINB to enforce the said Judgment against TM.

Save for management cost and legal expenses, the legal suit has no material financial and operational impact on TM at present.

A further announcement will be made on any material development of the legal suit.

Announcement Info

Company Name TELEKOM MALAYSIA BERHAD
Stock Name TM
Date Announced 5 Jan 2011
Category General Announcement
Reference No TM-110105-61547