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Telekom Malaysia Berhad (TM), the emerging leader in Asian communications with operations in nine Asian countries, confirmed today that it has sold 3.22 percent of its shareholding in its subsidiary Dialog Telekom Limited (DTL). TM through its wholly owned subsidiary TM International (L) Limited, sold the 233.6 million shares at SLR27 per share on 17 May 2007, thereby increasing the liquidity of Dialog shares.

”On the 2nd anniversary of Dialog’s listing on the Colombo Stock Exchange (CSE), TM is reiterating its commitment to Sri Lanka and its people by passing on more opportunity of ownership to the Sri Lankan public by increasing the liquidity of DTL,” said TM Group and DTL Chairman Tan Sri Dato’ Ir Md Radzi Mansor.

According to Tan Sri Radzi, the Company would be able to achieve a broader scale of public ownership and project a strong image. Since the success of DTL and the DTL brand name belonged to the Sri Lankan public, it is logical and timely that more public ownership is added to DTL’s formula of success.

“This liquidity enhancement will indirectly support the growth of the capital market in Sri Lanka by potentially attracting large foreign funds, thus enhancing the profile of the CSE, for its potential inclusion into global equity indices,” Tan Sri Radzi noted.

TM International CEO Yusof Annuar Yaacob reiterated that TM has over the past 12 years invested significantly in DTL and have always had the utmost faith in Sri Lanka as an investment destination.

“We have been undeterred by what we would regard as minor fluctuations in the macro environment in the country – we have at all times placed our confidence in our customers and the team at DTL,” Yusof said.

DTL, TM’s pioneer international investment was initially set up in 1995 to provide GSM cellular service in Sri Lanka. Developed under the brand name Dialog GSM, the network is also Sri Lanka’s pioneer digital cellular network.

TM, through its investment arm, TM International Sdn Bhd, has operations in Sri Lanka, Bangladesh, Pakistan, India, Indonesia, Thailand, Cambodia, Singapore and Iran. TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.

About Telekom Malaysia Berhad (TM)

Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform; the Group contributes towards causes that bring value to the community and nation at large.

For further information on TM, visit www.tm.com.my

About Dialog Telekom Limited

Dialog Telekom Limited is the largest mobile operator in Sri Lanka with over 3.2 million subscribers, representing approximately 60 per cent market share. It is also the largest listed Company on the Colombo Stock Exchange (CSE) in terms of market capitalisation with a market capitalisation (as of 31 March 2007) of SLR188.79 billion (USD1.73 billion), representing 21.7 per cent of the market capitalisation on the CSE. The Company has the distinction of having become the first Company in Sri Lanka to achieve a market capitalization exceeding USD1 billion.

Dialog Telekom Limited is a subsidiary of the Telekom Malaysia (TM) Group. In addition to its core mobile telephony business, the Company provides international services, supporting an International Gateway infrastructure providing retail and wholesale international voice and data services under the brand name of Dialog Global. The company also provides Internet services through Dialog Internet - a fully-fledged Internet Service Provider (ISP). Dialog Telekom also operates Dialog SAT, a mobile satellite service.

For further information on Dialog, visit www.dialog.lk