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We refer to the Circular to Shareholders of Telekom dated 8 March 2003 (“Circular”) and our announcement on behalf of Telekom dated 9 December 2003.

On behalf of Telekom, Commerce International Merchant Bankers Berhad is pleased to announce that Telekom has issued the following today:

(i) RM1,983.5 million nominal value Telekom Bonds Tranche 1; and

(ii) RM1,000 million nominal value Telekom Bonds Tranche 2.

The principal terms and conditions of the Telekom Bonds are set out in our announcement dated 9 December 2003.

As an integral part of the above fund raising exercise by Telekom, the following securities were also issued:

(i) RM2,000 million nominal value 10-year redeemable unsecured bonds by Tekad Mercu Berhad (“TM”) (“TM Bonds Tranche 1”) on 30 December 2003;

(ii) RM1,000 million nominal value 15-year redeemable unsecured bonds by TM (“TM Bonds Tranche 2”) on 30 December 2003;

• RUSB was incorporated under the Companies Act, 1965 on 28 June 2003 as a private company limited by shares.
  
  RUSB was established for the specific purpose of:(a) subscribing for or otherwise acquire, own and hold up to RM4,000 million nominal value Telekom Bonds and up to 2,000 Telekom RPS; and
  
  (b) raising funds by issuing up to 4,000 RPS for the purpose of financing the acquisition, ownership or holding described in (a) above and paying fees, costs and expenses (including taxes, if any) incurred or to be incurred in connection with the acquisition, ownership or holding described in (a) above, the fund raising and/or its business operations.
(iii) 1,000 Telekom RPS A to Rebung Utama Sdn Bhd (“RUSB”), at an issue price of RM1.00 each, on 12 December 2003;

(iv) 1,000 Telekom RPS B to RUSB, at an issue price of RM1.00 each, on 12 December 2003;

(v) 1,987 Class A RPS of RM0.01 each in RUSB (“RUSB RPS A”) to TM, at an issue price of RM1.0 million each, on 30 December 2003; and

(vi) 1,000 Class B RPS of RM0.01 each in RUSB (“RUSB RPS B”) to TM, at an issue price of RM1.0 million each, on 30 December 2003

(the TM Bonds Tranche 1 and TM Bonds Tranche 2 are collectively known as “TM Bonds”, and the RUSB RPS A and RUSB RPS B are collectively known as “RUSB RPS”).

The principal terms and conditions of the TM Bonds are set out in our announcement dated 9 December 2003. The principal terms and conditions of the RUSB RPS A and RUSB RPS B are set out in Attachments 1 and 2 respectively.

A brief description of RUSB and TM are set out below:

(i) RUSB

• As at 9 December 2003, the issued and paid-up share capital of RUSB comprise of two (2) ordinary shares of RM1.00 each, held by PCA Corporate Services Sdn Bhd, acting as the trustee under a discretionary trust.

• TM was incorporated under the Companies Act, 1965 on 3 July 2003 as a public company.
  
  TM was established for the specific purpose of implementing a programme under which TM will:(a) subscribe for or otherwise acquire, own or hold up to 4,000 RUSB RPS; and
  (b) raise funds by issuing up to RM4,000 million nominal value bonds for the purpose of financing the acquisition, ownership and holding of the RUSB RPS and paying fees, costs and expenses (including taxes, if any) incurred or to be incurred in connection with the acquisition, ownership and holding of the RUSB RPS, the fund raising and/or its business operations.

(ii) TM

• As at 9 December 2003, the issued and paid-up share capital of TM comprise of two (2) ordinary shares of RM1.00 each, held by Pacific Trustees Berhad, acting as the trustee under a discretionary trust.

This announcement is dated 30 December 2003.