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Pursuant to Paragraph 9.04(f) of the Kuala Lumpur Stock Exchange Listing Requirements, Telekom Malaysia Berhad (“TM”) wishes to announce that TM jointly with Telekom Publications Sdn Bhd ("TPSB"), a wholly owned subsidiary of TM, on 11 August 2003 via their solicitors Messrs. Skrine, has instituted legal proceedings against Buying Guide (M) Sdn Bhd ("BGSB") relating to the infringement of TM's and TPSB's (hereinafter collectively referred to as the "Plaintiffs") copyright and passing off, the details of which are set out below, (hereinafter referred to as the “Litigation”).

Background

The Plaintiffs claimed that BGSB has, without the Plaintiffs' permission, licence, consent or authority, been publishing and distributing a directory named “Buying Guide”, which the Plaintiffs believe reproduces or substantially reproduces headings and business subscriber listings compiled in the Yellow Pages directories, a product of TPSB, as well as subscribers data compiled from TM’s database. In addition, Buying Guide appears to employ a get-up that is confusingly and deceptively similar to the get-up employed by the Yellow Pages directories.

Course of Action Taken by TM

On 21 April 2003, the Plaintiffs have served a letter of cease and desist demanding BGSB:-

(i) to cease and desist activities that infringe their copyright or which constitutes passing off;
(ii) to deliver up items which infringe or constitute the same; and
(iii) to pay damages or account for profits as a result of the infringing activities.

Following BGSB's denial of the said alleged infringement on 12 May 2003, the Plaintiffs have filed the Writ of Summons and Statement of Claim in the High Court of Malaya at Kuala Lumpur on 11 August 2003 and will serve the same on BGSB in due course.

Potential effect of the Action to TM

In the event that TM is unable to recover the costs relating to the Litigation or becomes liable to pay any costs or damages, TM is of the view that the said failure will not potentially give any material adverse impact to the financial position of TM and its Group.

TM will announce further development on the above at the appropriate time.