Contents :

Introduction

Telekom Malaysia Berhad ("TM") wishes to announce that its wholly-owned subsidiary, TM Facilities Sdn Bhd (“TM Facilities”) has on 1 December 2004 acquired two (2) ordinary shares of RM1.00 each in TM Land Sdn Bhd (Formerly known as Telekom Land Sdn Bhd) for a total consideration of RM2.00.

Information on TM Land Sdn Bhd

TM Land Sdn Bhd was incorporated under the Companies Act 1965 in the name of Telekom Land Sdn Bhd on 24 October 1996. The Company has changed its name to TM Land Sdn Bhd on 25 November 2004.

The authorized capital of TM Land Sdn Bhd is RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each, of which RM2.00 has been issued and fully paid-up. The authorized and paid up capital would be increased to RM500,000 and RM250,000 respectively.

Rationale for the Acquisition of TM Land Sdn Bhd

TM Land Sdn Bhd was acquired as the vehicle to develop and manage land banks of TM and TM Facilities.

Financial Impact and Interest of Directors, Substantial Shareholders

The activation of TM Land Sdn Bhd is not expected to have any immediate or material impact on the consolidated earnings of TM for the financial year 31 December 2004. However, it is expected to enhance operational synergies and future earnings of the Group.

None of the Directors, substantial shareholders and/or persons connected to them has any interest, whether direct or indirect in the above acquisition.