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We refer to the report appearing in the Asian Wall Street Journal of 2 June 2004, wherein it quoted “a Telekom Malaysia official” as follows:-

"But he said the company is planning to sell its 15% interest in Telkom SA Ltd., the incumbent South African telecom concern. That could raise anything between $400 million and $600 million…”

We wish to inform the Exchange that the facts of the statement above are erroneous.

We wish to clarify that Telekom Malaysia Berhad (TM) has effectively a 12% stake in Telkom SA Ltd (TSA). Additionally, at current South African Rand exchange rate and TSA share price in the Johannesburg Stock Exchange, the aforesaid stake is valued at about $800 million. TM is continuously reviewing its options with regard to its overseas investments with a view to maximize shareholders’ value.

TM’s shareholdings in TSA is through Thintana Communications LLC, a consortium arrangement with SBC International Inc. (SBC), a company incorporated under the laws of the State of Delaware of the United States of America. As such, any potential disposal will take into consideration agreement with its partner, SBC and market conditions.