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We forward herewith a press statement released by Telekom Malaysia Berhad today on the above matter:-

Telekom Malaysia Berhad (TM) announced today that its associated company in India, Spice Communications Limited (Spice), has kick-started a proposed listing on the Indian bourse with the filing of a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP outlines the intention to raise funds through an initial public offering (IPO) of 137,985,000 equity shares through a full book building process, TM said in a statement released today.

TM has a 49% stake in Spice through TMI India Limited, a wholly-owned subsidiary of TM's international investment holding company, TM International Sdn Bhd. The remaining 51% is with Modi Wellvest Private Limited (MWPL) a promoter of Spice. Both MWPL and TM will dilute about 20% of their holdings and post-listing, MWPL and TM’s shareholding will come down to 40.8% and 39.3% respectively.

Spice commenced operations in 1997 as a cellular services provider in the states of Punjab and Karnataka in India. As at December 31, 2006, Spice is the second largest cellular services provider in Punjab and sixth largest cellular services provider in Karnataka in subscriber terms (based on data compiled by the Cellular Operators Association of India, COAI). On a combined basis, Spice has a market share of 14.26% in these states.

The customer base consists of approximately 2.45 million as of December 31, 2006, comprising approximately 1.92 million pre-paid and 0.53 million post-paid customers. Both these states are recognised as major economic hubs of India, with Punjab enjoying the highest per capita income in the country, and Karnataka (whose major city is Bangalore) known as the “Silicon Valley” of India.

To complement its existing markets, Spice has recently embarked on a pan-India expansion strategy by applying for licences for an additional 20 circles throughout India to provide GSM cellular services, in addition to licences for providing National Long Distance (NLD) and International Long Distance (ILD) services.

According to the statement, Spice expects to benefit from TM’s operational and management experience both in Malaysia and key Asian regional markets, through the creation of new products and services, the sharing of technological experience and implementing and leveraging group synergies. The proceeds from the IPO will be used for part payment of its long-term debt, payment towards NLD/ILD and other licence fees, and to meet capital expenditure requirements.

About 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 Securities Berhad 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 into one of the best universities in Malaysia 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

DISCLAIMER:

Spice is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with the SEBI. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the website of the BRLMs at www.enam.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the aforementioned offer document.

This press release is not an offer for sale within the United States of any equity shares or any other security of Spice Communications Limited. Securities of Spice Communications Limited, including any offering of equity shares, may not be offered or sold in the United States absent registration under U.S. securities laws or an exemption from the registration requirements under such laws. The proposed offering of Spice Communications Limited securities described in this press release has not been and will not be registered under U.S. Securities laws, and accordingly, any offer or sales of these securities may be made only in transaction exempt from registration.