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Telekom Malaysia Berhad (“TM”) wishes to announce that it has on 15 September 2003 acquired two (2) shares of RM1.00 each in TM Cellular (Holdings) Sdn Bhd [“TCH”] for a total consideration of RM2.00.

Information on TCH

TCH was incorporated under the Companies Act 1965 in the name of Telekom Marketing Sdn Bhd on 22 July 1994. The company has changed its name to TCH on 9 December 1998.

The authorized capital of TCH 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.

Rationale for the Acquisition of TCH

TCH was acquired as the vehicle to pursue TM’s interest in broadband mobile data and 3G businesses. A separate entity for these businesses is also necessary to comply with conditions of the spectrum assignment issued by the Malaysian Communications and Multimedia Commission.

Financial Impact and Interests of Directors, Substantial Shareholders

The activation of TCH is not expected to have any immediate or material impact on the consolidated earnings of TM for the financial year ended 31 December 2003. 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.