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INTRODUCTIONTelekom Malaysia Berhad (“TM”) wishes to announce that its wholly-owned subsidiary, TM Facilities Sdn Bhd (“TM Facilities”) has on 20 April 2004, entered into a Joint Land Development Agreement (“JLDA”) with Magna Prima Berhad (“MPB”) to jointly develop TM’s freehold land situated in the vicinity of the Kuala Lumpur City Centre (“KLCC”) measuring 46,048 square feet held under Lot 305, Seksyen 63, Mukim and District of Kuala Lumpur, State of Wilayah Persekutuan (the “Project Land”).BRIEF INFORMATION ON TM FACILITIESTM Facilities is a wholly owned subsidiary of TM, and its principal activity is the provision of facilities management services. The authorised capital of TM Facilities is RM5,000,000 divided into 5,000,000 ordinary shares of RM1.00 each and its issued and paid-up capital is RM2,300,000 comprising of 2,300,000 ordinary shares of RM1.00 each.BRIEF INFORMATION ON MPBMPB is a public company limited by shares and listed on the Second Board of Malaysia Securities Exchange Berhad. The authorised and issued share capital of MPB as at 31 March 2004 is RM 50,000,000 and RM41,482,479 respectively. The subsidiaries of MPB are mainly involved in property development and construction activities.SALIENT FEATURES OF THE JLDA The development of the Project Land involves a proposal to build one tower of 5-star diamond class luxury condominiums to be branded as “Embassy Court”, consisting of a total of 77 units comprising of 75 standard units with built-up of 3,500 square feet each and 2 Duplex penthouse units of 6,600 square feet each (the “Project”).

MPB through its development arm, namely Magna Park Sdn. Bhd. (“MPSB”) has incorporated a subsidiary company known as Embassy Court Sdn Bhd (“ECSB”) to be the developer of the Project.

TM Facilities shall provide and make available the Project Land for the Project and ECSB shall provide the technical, financial, commercial and management expertise and shall develop the Project Land in accordance with the provisions of the JLDA.

The Gross Development Value (“GDV”) for the Project is estimated at RM182 million. The Project is expected to be launched by 1st Quarter 2005 and to be completed within 3 years from the date of launch.

The consideration to TM Facilities for developing the Project Land is 20% of the GDV equivalent to RM36.4 Million, payable over the four year development period inclusive of a minimum guaranteed land cost of RM15,333,984 (based on RM333 per square foot).

A commitment fee of RM1,533,398.40, being 10% of the total guaranteed land cost is payable upon signing of the agreement.


RATIONALE FOR THE JLDA

The JLDA is an initiative by TM to develop its land bank to create value for TM Group and its shareholders.
FINANCIAL EFFECTThe JLDA will not have any material effect on TM Group’s NTA for the financial year ending 31 December 2004 and it is expected to contribute positively to the earnings of TM Group.


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 JLDA.