Contents :

INTRODUCTION

We refer to our previous announcements to the Kuala Lumpur Stock Exchange dated 17th August 2000, 20th September 2001, 30th November 2001, 22nd February 2002 and 29 October 2002 in relation to investments of Telekom Malaysia Berhad (“TM”) in Ghana Telecommunications Co. Ltd (GT).

BACKGROUND

The outstanding issues between the Government of Ghana ("the GoG"), GT and TM are namely as follows:-

(a) The sale of 30% G-Com’s shares in GT to the GoG at a fair market value;

(b) Deposit Refund of USD50 Million pursuant to the Heads of Agreement dated 10th August 2000; and

(c) The outstanding consultancy fees of USD7.3 Million due and payable to TM International Sdn. Bhd., a wholly owned subsidiary of TM by GT.

On 18th September 2002, TM issued a Notification of Claim to the GoG pursuant to the Bilateral Investment Treaty dated 11th November 1996 between the Government of Malaysia and the GoG (“BIT”) for both parties to settle the above outstanding issues on an amicable basis on or before 18th December 2002. As at 18th December 2002, there was no resolution on the above outstanding issues and TM has commenced preparation of the official arbitration papers for further action.

LATEST DEVELOPMENTS

We wish to announce to the Exchange the following latest development pertaining to our investment in GT:

1. On 22nd and 23rd January 2003, TM’s negotiating team met with the GoG’s negotiating team to discuss outstanding issues relating to the sale of G-Com’s 30% stake in GT and other related matters. However, the parties failed to reach an amicable settlement of the above mentioned issues.

2. In protecting its investment in Ghana, on 10 February 2003, TM through its counsel in London, sent a Notice of Arbitration ("said Notice") to the GoG for the commencement of arbitration proceedings under the UNCITRAL Arbitration Rules in accordance with the provisions of the BIT. Upon the receipt of the said Notice by the GoG, the parties will determine the constitution of an Arbitral Tribunal to decide the modalities of the arbitration proceeding. It is expected that the arbitration proceeding would conclude within a period of 18 to 24 months from the date of filing of the said Notice.

TM will announce further development on the arbitration proceeding at an appropriate time.