Contents :

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  § RM1,983.5 million nominal value 10-year redeemable unsecured bonds (“Telekom Bonds Tranche 1”); AND
  
  § RM1,000 million nominal value 15-year redeemable unsecured bonds (“Telekom Bonds Tranche 2”)
We refer to our announcement dated 30 December 2003 on the issuance of the following:(I) RM2,983.5 MILLION NOMINAL VALUE REDEEMABLE UNSECURED BONDS (“TELEKOM BONDS”) BY TELEKOM (“PROPOSED TELEKOM BONDS ISSUES”) COMPRISING:

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  § 1,000 Class A RPS of RM0.01 each (“Telekom RPS A”) at an issue price of RM1.00 each; and
  
  § 1,000 Class B RPS of RM0.01 each (“Telekom RPS B”) at an issue price of RM1.00 each.
  
(II) 2,000 REDEEMABLE PREFERENCE SHARES (“RPS”) OF RM0.01 EACH (“TELEKOM RPS”) COMPRISING:We are pleased to announce dividends in respect of the following:(i) Telekom RPS A, a gross dividend of RM86,347,094.15 or RM86,347.09 per RPS (net dividend of RM62,169,907.79 or RM62,169.91 per RPS). This represents a gross dividend rate of 8,634,709.41% per RPS (net dividend rate of 6,216,990.78% per RPS); and

(ii) Telekom RPS B, a gross dividend of RM36,558,219.18 or RM36,558.22 per RPS (net dividend of RM26,321,917.81 or RM26,321.92 per RPS). This represents a gross dividend rate of 3,655,821.92% per RPS (net dividend rate of 2,632,191.78% per RPS).The net dividend on Telekom RPS A represents interest payable on the Telekom Bonds Tranche 1 for the six (6) months ending 30 June 2004.

The net dividend on Telekom RPS B represents interest payable on the Telekom Bonds Tranche 2 for the six (6) months ending 30 June 2004.

The entitlement date for the above dividends is 11 June 2004.

This announcement is dated 11 June 2004.