1. On behalf of TM’s Board of Directors, CIMB Investment Bank Berhad (“CIMB”) and AmInvestment Bank Berhad (“AmInvestment Bank”) are pleased to announce that TM has today received approval from the Securities Commission (“SC”) for the establishment of an ICP programme (“Proposed ICP Programme”) and an IMTN programme (“Proposed IMTN Programme”) with a combined limit of up to RM2.0 billion in nominal value (Proposed ICP Programme and Proposed IMTN Programme collectively referred to as “Proposed Programmes”).

The Proposed ICP Programme and the Proposed IMTN Programme, which have respective tenures of 7 and 15 years from the date of first issue, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Berhad. The other salient terms and conditions of the Proposed Programmes are set out in Appendix I.

2. The Proposed Programmes are in line with TM’s capital management framework to drive capital structure/cost optimisation and shareholders’ value enhancement.

With the Proposed Programmes in place, TM would have the flexibility to time its fund-raising exercise over the tenures of the Proposed Programmes as well as having an alternative access to debt funding, in addition to conventional bank borrowings.

The proceeds to be raised through the issuance of ICP and/or IMTN (collectively “Sukuk”) will be used by TM to meet its capital expenditure requirements.

3. The Proposed Programmes and any issuance of Sukuk there under will not have any effect on TM's issued and paid-up share capital or substantial shareholders' shareholdings in TM.

Pending any issuance, the Proposed Programmes will also not have any effect on the consolidated gearing of TM and will not have a material effect on TM’s consolidated net assets or consolidated earnings.

Any issuance of Sukuk under the Proposed Programmes will increase TM’s consolidated gearing, the quantum of which is dependent on the amount raised. Nonetheless, TM intends to only undertake such issuance where its consolidated gearing level would remain manageable, after taking into consideration its then prevailing cashflow/financial position and prospects.

The effects of any issuance of Sukuk under the Proposed Programmes on TM’s consolidated earnings will depend on, amongst others, the effective borrowing cost of such issuance and the specific use of proceeds thereof, both of which cannot be determined at this stage.

4. Other than the approval of the SC, the Proposed Programmes are not subject to any regulatory and/or shareholder approval.

5. None of TM’s Directors and major shareholders and persons connected to them has any interest, direct or indirect, in the Proposed Programmes.

6. CIMB and AmInvestment Bank have been appointed as the Joint Principal Advisers, Joint Lead Arrangers, Joint Book-runners and Joint Lead Managers for the Proposed Programmes.

This announcement is dated 5 April 2011.