Contents :

The letter dated 4 January 2002 from the Exchange regarding the following sentences appearing in the Business Times, pages 1 and 2, on Friday, 4 January 2002, refers:

"The Government has decided to award third generation (3G) mobile phone spectrum licence to Telekom Malaysia Bhd..."

"...the Government may waive the RM50 million licence fee which was earlier proposed to be payable in instalments."

"The companies have been told verbally but official notification has not yet been made..."

We wish to inform the Exchange that Telekom Malaysia Berhad ("TM") has not been informed either verbally or officially on the award of the 3G spectrum. TM is currently studying the requirement of the beauty contest which the Government and the Malaysian Communications and Multimedia Commission ("the Commission") has officially announced to be the mechanism for the award of the 3G spectrum.

The Commission has issued an official statement with respect to the implementation of 3G in Malaysia. They will issue tender documents by February 2002, which will address the criteria to be used for the beauty contest. According to the Commission, the 3G spectrum will be allocated by July 2002.

Query Letter Contents :

We refer to the above news article appearing in Business Times, pages 1 and 2,
on Friday, 4 January 2002, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"THE Government has decided to award third generation (3G) mobile phone
spectrum licence to Telekom Malaysia Bhd ..."
"... the Government may waive the RM50 million licence fee which was earlier
proposed to be payable in instalments."
"The companies have been told verbally but official notification has not yet
been made ..."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentences or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentences or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully

LISA LAM
Senior Manager, Listing Operations
LL/YYT/ZOOS
c.c. Securities Commission (via fax)