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Telekom Malaysia Berhad ("TM") wishes to announce that its wholly owned subsidiary, TM International Sdn Bhd ("TM International") has today entered into a Memorandum of Understanding ("MOU") with Samart I-Mobile Public Co. Ltd (“Samart I-Mobile) to pursue potential business collaboration in various aspects of international business expansion of mobile and multimedia content services (the “Proposed Collaboration”) with a view to have written definitive agreements to implement the Proposed Collaboration.

The MOU shall be effective for a period of 12 months, and shall be further extended upon agreement by both parties.

2. INFORMATION ABOUT SAMART I-MOBILE

Samart I-Mobile is a public listed company on the stock exchange of Thailand and is a subsidiary of Samart Corporation Public Co. Ltd (“Samart”) in which TM has a 19.6% stake. Its main area of business and experiences is in, inter alia, marketing, promoting, selling mobile phones, developing, integrating and marketing specific content and applications and other new products and services for the telecommunications sector in Thailand.

3. THE PROPOSED COLLABORATION

The Proposed Collaboration is aimed at the marketing, promotion, development and integration of specific content and applications, including the selling of mobile phones bundled with such content and applications, and its target market are TM International’s affiliates and other third parties outside Thailand.

Samart I-Mobile will function as an integrator between 3 main lines of business i.e. the mobile handset business, content and applications and interactive multimedia (including infotainment services).

4. RATIONALE OF MOU

The Proposed Collaboration will provide synergistic benefits to TM to better meet the needs and expectations of customers and improve the ability of TM International’s subsidiaries to compete in the increasingly competitive global mobile telecommunication market, going forward.

5. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

In so far as the Directors of TM are aware, none of the Directors nor the major shareholders of TM and/or persons connected to them have any interest, whether direct or indirect, in the above said transaction save for Dato’ Lim Kheng Guan and Ir Prabahar N K Singam, who are the common directors of TM and Samart.