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Telekom Malaysia Berhad (“TM”) is pleased to announce the listing of Telkom SA Limited ("Telkom"), TM’s investment in the Republic of South Africa ("RSA") on the Johannesburg Stock Exchange and the New York Stock Exchange on 4th March 2003.

The listing of Telkom is effectively a secondary offering of 139.2 million shares of the Government of RSA from a total of 557 million shares in Telkom of Rand 10 each. The price approved by the Government of RSA for listing was Rand 28 per share. There is no dilution of TM’s current effective stake of 12% in Telkom held through Thintana Communications LLC (“Thintana”). Thintana holds 30% of Telkom and TM effectively holds 40% of Thintana through its wholly owned subsidiary, Telekom Malaysia-Africa Sdn Bhd.

Telkom is a party to an existing Strategic Services Agreement (“SSA”) with Thintana, SBC International Management Services Inc., and TM's wholly owned subsidiary, Telekom Management Services Sdn. Bhd. to provide personnel to key positions in Telkom, subject to the terms and conditions of the SSA.

The SSA terminates upon the earlier of ten (10) days after Thintana ceases to be a Significant Shareholder in Telkom or 8th May 2007.

Rationale

In view of TM's strategic rights and confidence in the long-term growth and value enhancing potential of Telkom post-listing, TM considers its investment in Telkom as a long-term strategic investment.

Financial Impact

The abovesaid listing is not expected to have any immediate or material impact on the consolidated earnings of TM for the financial year ending 31 December 2003 and the consolidated net tangible assets per share of TM.

Directors, Major Shareholders and Connected Persons' Interest

In so far as the Directors of TM are aware, none of the Directors, major shareholders of TM and/or persons connected to them, have any interest, whether direct or indirect in the abovesaid listing.