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Telekom Malaysia Berhad (“TM”) wishes to announce that its wholly owned subsidiary, TM International (L) Limited (”TMIL”) has today entered into a Stock Purchase Agreement with AIF (Indonesia) Ltd (“AIF”) to purchase all of AIF’s stake in Excelcomindo.

TERMS OF THE PURCHASE

TMIL has agreed to purchase 523,532,100 ordinary shares of Rp100 each in Excelcomindo (“AIF Purchased Shares”), representing approximately 7.38% of the issued and paid-up share capital of Excelcomindo from AIF for a cash consideration of USD113 million (approximately RM390.98 million at the exchange rate prevailing on 18 April of USD1.00 : RM3.46).

The acquisition of the AIF Purchased Shares is expected to be completed within 30 business days from 19 April 2007. Upon the completion of the acquisition of the AIF Purchased Shares, the TM group will have a 66.98% equity interest in Excelcomindo.

The acquisition will be funded by internally generated funds and/ or debt.

RATIONALE FOR THE PURCHASE

The purchase will allow TM to increase its stake in Excelcomindo and to enjoy the benefits of one of the fastest growing markets for mobile telephony services in the world.

FINANCIAL EFFECT OF THE PURCHASE

The purchase 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 purchase of the shares.