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Pursuant to Paragraph 10.08 of the Kuala Lumpur Stock Exchange Listing Requirements (“KLSE LR”), Telekom Malaysia Berhad (“TM”) on behalf of its wholly owned subsidiary, TM Facilities Sdn Bhd (formerly known as TM Facilities Management Sdn Bhd) (“TM Facilities”), wishes to announce a related party transaction involving a director of TM in relation to a transaction of TM Facilities.

Information on TM Facilities Sdn Bhd (TM Facilities)

TM Facilities, is a wholly owned subsidiary of TM. It was incorporated under the Companies Act 1965 on 2 November 1995 and activated on 2 January 2002. The principal activity of TM Facilities is the provision and management of general maintenance services of facilities in inter alia, buildings, roads and towers.

Currently, the authorised share capital of TM Facilities is RM100,000 consisting of 100,000 ordinary shares of RM1.00 each whilst its paid up capital is RM2.00.

On 1 August 2002, a Letter of Award has been issued by TM Facilities to Edward & Sons Sdn Bhd ("ESSB") on the tender for road rehabilitation and slope stabilisation works at TM Bukit Dabei Microwave Station, Marudi Sarawak at an estimated cost of RM1,582,767.36.

Rationale

The transaction was awarded to ESSB after proper evaluation made on technical and commercial requirements.
Approvals required

The above transaction is not subject to the approval of shareholders and other relevant government authorities.

Financial Effects

The above transaction has no material effect on the consolidated earnings per share and the consolidated net tangible assets of TM for the current financial year ending 31 December 2002.

Interest of Directors and Substantial shareholders and persons connected to them

YB Joseph Salang Gandum who is a director of TM and shareholder of ESSB is deemed interested in the transaction.

Saved for the director mentioned above, none of the other Directors, major shareholders and/or persons connected to them have any interest, direct or indirect, in the transaction.