Contents :

The letter dated 31 May 2004 from the Exchange regarding the following news article appearing in The Edge, pages 1 and 6 , on Monday, 31 May 2004 refers:-

"......TMNet said last Thursday that it was venturing into the broadband television market, TMNet CEO Datuk Baharum Salleh said that Telekom's Internet unit will be introducing a video-on-demand (VOD) service offering movies, soap operas and games later this year".

We wish to inform the Exchange that TM Net Sdn Bhd ("TM Net"), a wholly owned subsidiary of Telekom Malaysia Berhad ("TM") had since fourth quarter 2002 been offering broadband content channels in its portal of www.bluehyppo.com. The said channels such as I-choose , el@ne and jadel@ne amongst others have been subscribed by the subscribers who enjoy broadband Internet access. With increasing demand for broadband, TM Net expects these content services will include the transmission of video-on-demand to the users' premises. This effort is to spur better uptake of broadband Internet Services and offer customer a wider choice of content. Full implementation of the service is expected to be by fourth quarter of 2004.

Query Letter Contents :

We refer to the above news article appearing in The Edge, pages 1 and 6, on
Monday, 31 May 2004, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"... TMNet said last Thursday that it was venturing into the broadband
television market. TMNet CEO Datuk Baharum Salleh said that Telekom's Internet
unit will be introducing a video-on demand (VOD) service offering movies, soap
operas and games later this year"
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentence or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentence or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully

LISA LAM
Sector Head , Issues & Listing
Group Regulations
LL/ZOOS
c.c. Securities Commission (via fax)