TM is pleased to announce that it has today signed the MERS 999 Project Agreement (“the MERS 999 Agreement") with the Government of Malaysia.

2.0 Details of the Transaction

• 2.1 TM had on 22 January 2009, accepted the Letter of Award (“LoA”) from the Government for the implementation of the MERS 999 Project to develop an integrated MERS 999 System that will create a unified database emergency services which will improve efficiency and response time of emergency services in Malaysia.

• 2.2 The MERS 999 Project will be implemented for a period of three (3) years and two (2) months effective from 1 May 2007 until 30 June 2010. TM will develop, supply, deliver, install, test, commission, operate and maintain the MERS 999 System with the implementation cost of RM334,050,000.00 (Ringgit Malaysia: Three Hundred Thirty Four Million and Fifty Thousand).

• 2.3 Under the MERS 999 Agreement:

• • • i. Phase 1 of the MERS 999 Project covered the establishment of a 999 Call Centre in Melaka and the upgrading of 7 existing 999 Call Centres in Alor Star, Kota Bharu, Kuala Terengganu, Kluang, Kota Kinabalu, Seremban and Kuantan. Phase 2 will provide the development of the full functionality of MERS 999 System in Central Region whereas Phases 3 and 4 will cover the commissioning of the basic functionality of MERS 999 System for Southern and Eastern Region and for Northern region and East Malaysia respectively.
      ii. The services provided by TM through this project amongst others are consolidated emergency call to a single number of 999, Integrated emergency services to Emergency Agencies with features of Computer Aided Dispatcher (CAD), Computer Technology Interface (CTI) and Geographical Information System (GIS) application, end to end emergency system connecting the emergency calls from MERS 999 Response Center to the Emergency Agency Dispatch Centres, Operation and maintenance of the MERS 999 System, continuous training and publicity and awareness to public on MERS 999 System.

• Under the MERS 999 Project, all emergency numbers will be replaced with a single number, 999 for the Malaysian public to call in the event of emergencies. The transaction reflects the commitment of the Government on the protection and safety of human life by improving efficiency and response time of the Malaysian emergency agencies in providing emergency services to the public.

• • • The MERS 999 Project will not have any effect on the issued and paid-up capital of TM.

• • • The MERS 999 Project is not expected to have any material impact on the earnings, net assets and gearing of TM Group for the financial year ending 31 December 2009.

• 4.3 Substantial Shareholders’ Shareholdings

• • • The MERS 999 Project will not have any effect on the shareholding of TM’s substantial shareholders.

• 
  The execution of the MERS 999 Agreement has been duly approved by the Board of Directors of TM and is not subject to any other approvals.

• None of the Directors or major shareholders or persons connected to them has any direct or indirect interest in MERS 999 Agreement.

• The Board of Directors having considered all aspects of the MERS 999 Project is of the opinion that the terms of the MERS 999 Agreement are fair and reasonable and are in the best interest of TM.