Telekom Malaysia Berhad (“TM”) is pleased to announce the acceptance of a Letter of Award (“LoA”) from the Government of Malaysia (“the Government”) for the implementation of the:

1. High Speed Broadband Phase 2 (“HSBB 2”) Project in collaboration with the Government to deploy the access and domestic core networks to deliver an end-to-end HSBB infrastructure. The total cost of the HSBB investment for a period of ten (10) years is RM1.8 billion.

2. Sub Urban Broadband (“SUBB”) Project in collaboration with the Government to deploy the access and domestic core networks to deliver an end-to-end HSBB infrastructure. The total cost of the SUBB investment for a period of ten (10) years is RM1.6 billion.

With the acceptance of the LoA by TM, the parties will enter into a formal agreement (“HSBB 2 and SUBB Agreements”) based on mutually agreed terms and conditions in due course. Further details and relevant information would be announced upon the execution of the HSBB 2 and SUBB Agreements between the Government and TM.

None of the Directors or major shareholders or persons connected to the Directors or major shareholders of the Company has any direct or indirect interest in the HSBB 2 and SUBB Projects.

This announcement is dated 25 February 2015.