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Telekom Malaysia Berhad (“TM”) wishes to announce that its wholly-owned subsidiary, TM International Sdn Bhd (“TM International”), has on 10th October 2003 entered into a Transfer and Settlement Agreement (‘the Agreement”) with Dr Oum Prum (“OP”), a shareholder of Cambodia National Communications Inc. (“CNC”), to dispose and transfer TM International’s 210,000 ordinary shares of USD1.00 in CNC to OP.

The conditions precedent of the said Agreement, including the delivery of documents on the transfer of the legal title of CNC’s assets by OP to TM International’s subsidiary, Cambodia Samart Communication Company Limited (“CASACOM”) was fulfilled on 17 November 2003. TM International and OP shall thereafter mutually terminate their Joint Venture Agreement dated 7th August 1996.

INFORMATION ON CNC

TM International and OP entered into a joint venture agreement and incorporated CNC in the Kingdom of Cambodia in September 1996 for the provision of trunk land mobile radio services in Cambodia. The equity interest of TM International and OP in CNC was 42% and 58%, respectively.

The authorised capital of CNC is USD1.0 Million comprising of 1 Million ordinary shares of USD1.00 each and its issued capital is USD500,000 divided into 500,000 ordinary shares of USD1.00 each.

RATIONALE FOR SHARE DISPOSAL

TM International decided to dispose its interest in CNC based on the rationale that the trunk land mobile radio business is no longer a viable and strategic business and CNC has ceased operation subsequent to the political unrest in Cambodia in 1997. With the said disposal, TM is able to consolidate the Group’s international operations and be more focused in the mobile operations of its subsidiary, CASACOM in Cambodia.

FINANCIAL IMPACT AND INTERESTS OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS

The termination of the joint venture in CNC will not have any immediate or material impact on the consolidated earnings of TM for the financial year ended 31 December 2003.

None of the Directors, substantial shareholders and/or persons connected to them has any interest, whether direct or indirect in the abovesaid transaction.