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Telekom Malaysia Berhad ("TM") wishes to announce that it has, on 7 May 2007, acquired two (2) ordinary shares of RM1.00 each in Hijrah Pertama Berhad ([formerly known as Hijrah Pertama Sendirian Berhad] [formerly known as Malaysian Logistics Sdn Bhd]) for a total consideration of RM2.00.

Information on Hijrah Pertama Berhad

Malaysian Logistics Sdn Bhd was incorporated under the Companies Act, 1965 on 25 March 1996 and it is now known as Hijrah Pertama Berhad (“HPB”) with effect from 3 May 2007.

The authorized capital of HPB is RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each, of which RM2.00 has been issued and fully paid-up.

• • (ii) Sukuk Ijarah Class A of nominal value up to RM1,998,000,000.00; and
    
  • (ii) Sukuk Ijarah Class B of nominal value up to RM999,000,000.00,
Rationale for the Proposed Acquisition

On 4 April, 2007, the Company had announced that the Board of Directors had approved the proposed issue of up to RM3,000 million Islamic Stapled Income Securities (“Islamic Stapled Income Securities”) which comprise:-

(a) (i) Class C Non-Convertible Redeemable Preference Shares (“NCRPS”) consisting of up to 2,000 Class C NCRPS; which are linked to(b) (i) Class D NCRPS consisting of up to 1,000 Class D NCRPS; which are linked to
The proposed issue of Islamic Stapled Income Securities is intended to replace an equivalent amount of the Company’s existing financing which are conventional in nature with Islamic-based financing that is Shariah-compliant and thereby enable the Company’s shares to qualify for inclusion in the Dow Jones Islamic Index.

The acquisition of the shares in HPB is to facilitate the issuance of the Islamic Stapled Income Securities under the Islamic principle of Ijarah.


Financial Impact and Interest of Directors, Substantial Shareholders

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

None of the Directors, substantial shareholders of the Company and/or persons connected to them has any interest, whether direct or indirect in the Acquisition.