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Pursuant to Paragraph 9.19 (23) of the Kuala Lumpur Stock Exchange Listing Requirements, Telekom Malaysia Berhad ("TM") wish to announce the acquisition of the following companies as its wholly-owned subsidiaries on 2 January 2002 :-

a) TM Facilities Sdn Bhd (formerly known as TM Facilities Management Sdn Bhd) at a purchase consideration of RM 2.00 ; and
b) TM Net Sdn Bhd (formerly known as Multimedia Management Sdn Bhd) at a purchase consideration of RM 2.00.

INFORMATION OF THE COMPANIES

a) TM Facilities Sdn Bhd

TM Facilities Sdn Bhd ("TM Facilities") is a private limited company incorporated under the Companies Act, 1965 in the name of "TM Facilities Management Sdn Bhd" on 2 November 1995. The company has changed its name to TM Facilities Sdn Bhd with effect from 22 August 2001.

The authorised share capital of TM Facilities is RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each whilst its paid up capital is RM2.00 divided into 2 ordinary shares of RM1.00 each.

b) TM Net Sdn Bhd

TM Net Sdn Bhd ("TM Net") is a private limited company incorporated under the Companies Act, 1965 in the name of "Multimedia Management Sdn Bhd" on 25 October 1997. The company has changed its name to TM Net Sdn Bhd with effect from 15 October 2001.

The authorised share capital of TM Net is RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each and its paid up capital is RM2.00 divided into 2 ordinary shares of RM1.00 each.

PURPOSE OF ACQUISITION

The companies were acquired as specific purpose vehicles for the establishment of independent subsidiaries for TM ServiceCo and TM Multimedia, being the Strategic Business Units of TM, in line with TM's corporate restructuring plan that was announced to the Exchange on 19 January 2001.

Acquisition of the said companies is expected to enhance focus on the management of TM's core business and support services.

FINANCIAL IMPACT

The said acquisition is not expected to have any immediate or material impact on the consolidated earnings of TM for the financial year ending 31 December 2001 and the consolidated net tangible assets per share of TM.

DIRECTORS, MAJOR SHAREHOLDERS AND CONNECTED PERSONS' INTEREST

In so far as the Directors of TM are aware, none of the Directors, major shareholders of TM and/or persons connected to them, have any interest, whether direct or indirect, in the abovesaid transaction.