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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 Teaming Agreement ("TA") with Singapore Technologies Telemedia Pte Ltd (“ST Telemedia”) to pursue potential collaboration (the “Proposed Collaboration”) in a Joint Bid to acquire a strategic stake in Idea Cellular Limited of India (“Idea”).
  
  The TA shall be effective for a period of 12 months, and be further extended upon agreement by both parties.

• Telekom Malaysia has, through its wholly-owned subsidiary TM International, extensive experience in building and operating mobile networks in developing countries. It has operations and financial interests in South Africa, Malawi, Guinea, Ghana, Sri Lanka, Bangladesh, Thailand and Cambodia. Together, Telekom Malaysia’s international ventures have access to some 11 million cellular subscribers and contributed approximately 28.7% of the Group’s net profit after tax in 2003.
  
  ST Telemedia is a private limited company incorporated in Singapore in 1994. An information-communications company with operations and investments in Asia-Pacific, the Americas and Europe, ST Telemedia owns and manages the businesses in which it has investments. ST Telemedia’s group of companies includes StarHub, Indosat (PT Indonesian Satellite Corp.), Equinix, Global Crossing, TeleChoice and ST Teleport. Through its group of companies, ST Telemedia offers a wide array of telecommunications, information, communications services, including fixed and mobile communications, global IP network, data centres and Internet exchange services, satellite and cable TV.

• The Proposed Collaboration is aimed at forming a joint venture company (“JVCo”) to bid for a strategic stake in Idea. The amount of stakeholding and Board representative(s) in Idea would be determined by the equity percentages of the parties.
  
  The JVCo is the intended vehicle to acquire the strategic stake in Idea. Idea currently provides cellular services to some 2.4 million subscribers in its licensed areas in India. The company commenced operations in 1997.

• The Proposed Collaboration will provide TM with an outstanding international partner in ST Telemedia and is in line with TM’s strategy to expand on its Asia Pacific investment. It will also further improve TM’s ability to compete in the increasingly competitive global mobile telecommunication market, going forward.
  

• 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.