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Telekom Malaysia Berhad (“TM”) is pleased to announce the following proposals with regards to its Sri Lankan subsidiary, Dialog Telekom Limited’s (“Dialog”) decision:-

1. To raise approximately Rupees 15.54 Billion (approximately USD142.63 Million) by way of a Rights Issue to holders of the issued Ordinary Shares of the Company in the proportion of One (1) Ordinary Shares for every Ten (10) Ordinary Shares held in the capital of the Company, at a price of Rupees 21 per share.

2. To raise up to Rupees Five Billion (5,000,000,000) (approximately USD45.89 Million) via the issuance of Five Billion (5,000,000,000) Rated Cumulative Redeemable Preference Shares (“RCRPS”) of Rupee 1 per share.

3. To amend the Memorandum of Association of Dialog to provide for the increase of the authorised capital.

BACKGROUND

The Board of Directors (“BOD”) of Dialog during its Special Board Meeting, held on 19 April 2007, resolved to make such offer to the holders of the issued Ordinary Shares of the Company as at the forthcoming Extraordinary General Meeting (“EGM”) of Dialog. The new Ordinary Shares issued through the Rights Issue will rank pari passu in all respects with the existing issued Ordinary Shares of the Company including the right to participate in any dividend declared by Dialog.

The Rights Issue will be accompanied by a RCRPS issue aimed at raising up to Rupees Five Billion (5,000,000,000). The RCRPS will be placed with selective investors, including banks and financial institutions, by way of a private placement.

RATIONALE FOR THE RIGHTS ISSUE AND RCRPS

The proceeds of the Rights Issue and RCRPS of approximately Rupees 20.54 Billion will partially finance Dialog’s capital expenditure planned for the next 3 years, targeting accelerated expansion of network capacity and coverage and transformational investments in convergent technologies spanning the multiple business lines of Dialog.

DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS INTEREST IN THE PROPOSAL

None of the Directors, major shareholders and or person connected to TM Directors and substantial shareholders have any interest direct or indirect in the proposal.

This announcement is dated 20 April 2007.