Contents :

• The Proposed Exercise is part of the TM Group’s efforts to improve the balance sheet of TRI/Celcom.
  The proposed Exercise is subject to the approvals of :-
  (a) The shareholder of TRI; and
  (b) The High Court of Malaya, pursuant to Sections 60 and 64 of the Companies Act, 1965.
  
  
  The Proposed Exercise will not have any material effect on the TM Group.
Telekom Malaysia Berhad (“TM”) wishes to announce that the Board of Directors' of its wholly-owned subsidiary, Technology Resources Industries Berhad (Company No. 6899-X) (“TRI”) held through Celcom (Malaysia) Berhad (“Celcom”), had approved the proposed reduction of TRI’s entire Share Premium Account in the sum of RM1,006,035,143 to be set off against TRI’s accumulated losses pursuant to Sections 60 and 64 of the Companies Act, 1965 (“Proposed Exercise”).

1. Rationale for the Proposed Exercise

2. Approvals Required
3. Financial Effects of the Proposed Exercise

• None of the Directors and Substantial Shareholders of TM or persons connected with them has any interest, direct or indirect, in the Proposed Exercise.
  The Directors of TM are of the opinion that the Proposed Exercise is in the best interest of TM.
  Barring unforeseen circumstances, the Proposed Exercise is expected to be completed within three (3) months from the date of this announcement.
4. Directors' and Substantial Shareholders' Interest

5. Directors' Opinion on the Proposed Exercise
6. Estimated Timeframe for Completion