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Telekom Malaysia Berhad (“TM”) wishes to announce that it has sold its entire shareholding in Telekom Networks Malawi Limited (“TNM”) to MTL Mobile Ltd today.

CORPORATE INFORMATION ON TNM

TNM was set up on 23 March 1995 pursuant to a Joint Venture Agreement between Malawi Posts and Telecommunications Corporation (now known as Malawi Telecommunications Limited) and TM. The authorised share capital and issued and paid-up capital of TNM is Malawian Kwacha 350,000,000 (“Mk”) comprising 35,000,000 ordinary shares of Mk10 each. TM is the registered owner of 21,000,000 ordinary shares of Mk10 representing 60% of the total issued and paid-up capital of TNM. The remaining 14,000,000 ordinary shares of Mk10 are held by Malawi Telecommunications Limited ("MTL").

TNM is a cellular telephone operator in Malawi with approximately 300,000 subscribers.

TERMS OF THE SALE

Under the terms of the sale which was entered into by way of a Consent Order filed in the High Court of Malawi, TM agreed to sell its entire stake in TNM to an entity nominated by MTL (which was MTL Mobile Ltd) for a total cash consideration of US$16 million. The sale is subject to obtaining regulatory approval, including the Reserve Bank of Malawi and Malawi Communications Regulatory Authority, amongst others. In addition, TNM would pay all outstanding shareholder loans to TM and management fees to TM International Sdn Bhd amounting to US$4,964,821.43. All of the conditions relating to the sale have been met and the sale is now completed.

RATIONALE FOR THE SALE

The sale is part of a broader re-orientation of TM’s international investment strategy to focus on geographic regions closer to home. The first part of this involved the sale of TM’s investment in Telkom SA of South Africa which was duly completed in November 2004.

FINANCIAL EFFECT OF THE SALE

The sale is not expected to have any material impact on the consolidated earnings of TM for the current financial year ending 31 December 2007.

DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST

In so far as the Directors of TM are aware, none of the Directors, major shareholders of TM or persons connected with them have any interest, whether direct or indirect, in the sale of TNM.