TELEKOM MALAYSIA SUBSIDIARY SECURES USD50 MILLION FUNDING FROM IFC - Largest source of IFC non-recourse financing in Sri Lanka
a vote of confidence for company

Kuala Lumpur, 23/1/2004 - Telekom Malaysia's wholly-owned Sri Lankan subsidiary, MTN Networks (known under the service brand name Dialog GSM) has inked agreements with the International Finance Corporation (IFC) for a USD50 million credit facility in Dialog GSM, the country's leading GSM cellular mobile service. This is the largest credit facility to-date in Sri Lanka for the IFC, the private sector arm of the World Bank Group.

A signing ceremony was held in Colombo earlier today attended by chairman of Dialog and Telekom Malaysia, Tan Sri Dato Ir Md Radzi bin Hj Mansor, and Dialog CEO Dr. Hans Wijayasuria. The IFC was represented by Mr Assad Jabre (vice president of operations) and Dimitris Tsitsiragos (Director for South Asia). Also in attendance were Dialog's board and top management members and high-level Sri Lankan dignitaries.

The IFC facility consists of a loan of up to US$30 million for IFC's own account and a stand-by facility of up to US$20 million. This is also the IFC's second such facility to date in Sri Lanka's telecommunications sector.

The credit facility will fund the US$140 million nationwide expansion and upgrade of the Dialog GSM network in Sri Lanka, as well as its international gateway services. Dialog GSM intends to accelerate its expansion plans in terms of both coverage and value-added services across the island.

With 825,000 subscribers or 50% of the country's mobile subscriber base, Dialog GSM is currently the market leader in Sri Lanka. Operating a 2.5G network, Dialog supports the latest mobile multimedia and Internet services. Its national coverage spans all 9 provinces in Sri Lanka with over 370 base stations, and international roaming with 302 operators in 177 countries. In addition, MTN has for three consecutive years in 2001, 2002 and 2003, won the GSM Association award.

Commenting on the success in securing the facility, Tan Sri Md Radzi said "Dialog has come of age. This source of non-recourse financing on a stand alone basis without parental support is a resounding vote of confidence for Dialog."

"MTN being the leading cellular operator in Sri Lanka, is also the pioneering mobile telephony provider in the North and East of the country, having made a bold entry into the previously war torn areas shortly after the cessation of hostilities. Telekom Malaysia is indeed proud of the achievements of its wholly-owned subsidiary," he added.

Commenting further on Telekom Malaysia's commitment to Sri Lanka's telecommunications industry, Chief Executive Officer of TM International (TMI), Telekom Malaysia's international operating arm, Christian de Faria noted that, "Over the last 10 years since our entry into Sri Lanka in 1994, steadfast investment from Telekom Malaysia combined with a committed team at Dialog GSM and excellent support from government and regulatory bodies have enabled our subsidiary to establish a position of undisputed leadership in the mobile sector. Today we are happy to welcome the IFC as a partner in the journey going forward, which will bring greater benefits to the consumers of Sri Lanka."

Telekom Malaysia through TMI, has extensive experience in building and operating mobile networks in developing countries, with operations and financial interests in South Africa, Malawi, Guinea, Ghana, Sri Lanka, Bangladesh, Thailand and Cambodia. Together, Telekom Malaysia's international ventures have more than 7 million subscribers and contributed approximately 12.7 per cent of the Group's net profit after tax in 2002.

About IFC
The mission of the IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than US$37billion of its own funds and arranged US$22 billion in syndications for 2,990 companies in 140 developed countries. IFC's worldwide committed portfolio as of FY03 was US$16.8 billion for its own account and US$6.6 billion held for participation in loan syndications.

For further information on TM, visit www.tm.com.my