Contents :

INTRODUCTION

Pursuant to paragraph 9.04(o) of the KLSE Listing Requirements, Telekom Malaysia Berhad ("TM") wishes to announce that the Company is entering into a Memorandum of Understanding ("MOU") with KT Corporation, a corporation duly organised and existing under the Laws of the Republic of Korea, with its principal office at 206 Jungja-dong, Bundang-du, Sungnam-City, Kyunggi-do, 463-711, Korea ("KT") on 23 May 2002.

INFORMATION ABOUT KT

KT, formerly known as Korea Telecom Corp., is a provider of telecommunication services in Korea, including but not limited to domestic and international long distance telephone services, mobile, internet-related, data communications and satellite communications services.

KT has advanced technical expertise and operational know-how in Broadband Internet Business as well as being a leading company in System Integration and Network Integration business in Korea. It has successfully executed many projects in Korea, including but not limited to, the National Information Superhighway, the Communication Automation System in Incheon New Airport, Development of Education Information Network and Satellite Network Development.

SCOPE OF COLLABORATION

The scope of collaboration between TM and KT under the MOU are as follows: -

• To cooperate in Broadband Internet Engineering Services, Broadband Internet Equipment Provision, Broadband Internet Operation and Management System and Broadband Internet Contents Services;
• To cooperate and establish a strategic partnership in System Integration and Network Integration business; and
• To explore and to mutually agree on future opportunities in the Broadband Business.

RATIONALE OF THE MOU

Broadband access to internet has gained increasing prominence in network-based economic activities in some countries. Korea has been one of the pioneers in adapting to advanced telecommunication technologies and proven to be foremost in technologies in relation to broadband access to the internet.

The MOU would enable TM to gain technical advantage in the Broadband Business in Malaysia as well as in the region and to explore potential business collaboration with KT in the said business.

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 abovesaid transaction.