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We refer to the news article appearing on pages 39 and 47 of the New Straits Times on 5 December 2006, with particular reference to the sentences reproduced as follows:

“Telekom Malaysia (TM) is selling off its public pay phone business as part of its plans to dispose of non-core operations.”

We wish to inform the Exchange that the above-mentioned article is speculative in nature.

We wish to clarify that as announced earlier, TM has established a strategic business unit named TM Ventures to separately manage a large number of its local subsidiaries, including the payphone business, with the objective of rationalising the businesses to enhance TM Group’s performance.

TM Ventures is undertaking a review of these subsidiaries with a view to reintegrate businesses which are deemed as core into either Malaysia Business, Celcom (Malaysia) Berhad or TM International Sdn Bhd, or to exit businesses, which are deemed as non-core.

In rationalising the businesses, TM is considering various options and will be guided by decisions in the best interest of all stakeholders. Currently, no decision has been made regarding TM’s payphone business.

TM is also guided by the Listing Requirements of Bursa Securities and would make the necessary announcements to the Exchange as appropriate.