TELEKOM MALAYSIA AND MALAYSIA AIRLINES SYNERGISE BUSINESS RELATIONSHIP

Kuala Lumpur, Tuesday, 23 November 2004 - Telekom Malaysia Berhad and Malaysia Airlines (MAS), among corporate Malaysia's two largest Government Linked Companies (GLCs), today signed a Memorandum of Understanding (MoU) to collaborate and synergise business arrangements towards establishing a smart business partnership.

The MoU was signed today by Encik Jaffa Sany, Group Chief Financial Officer, Telekom Malaysia, and Dato' Abdul Rashid Khan, Senior General Manager, Sales, Distribution & Marketing of MAS.

Under the terms of the agreement effective 1 December 2004, MAS will offer special corporate nett rates for Telekom Malaysia staff's duty travel on its services. In addition, Telekom Malaysia employees and family members will also benefit from special promotional fares to selected destinations of the national carrier as well as special rates for MAS Golden Holiday packages.

On its part, MAS will enjoy competitive prices for its telecommunication services subscribed from Telekom Malaysia which includes leased lines, data and voice services among others. Additionally, MAS will also be able to use Telekom Malaysia's existing channels to market and promote its products.

Speaking at the signing ceremony Encik Jaffa Sany said: " We are delighted to cooperate with MAS, a fellow GLC and it marks a new beginning in our relationship in this era of revamped GLCs. I strongly feel that smart partnership between members of GLCs should be encouraged for mutual business significance."

In his speech at the event, Dato' Rashid Khan said, " Together, Malaysia Airlines and Telekom Malaysia, have been bringing the world to Malaysia and Malaysia to the world for many years. It is therefore natural for this MoU that paves the way for closer cooperation between two of Malaysia's biggest Government Linked Companies".

About Telekom Malaysia

Telekom Malaysia is one of Malaysia's largest public listed companies and the only full service Telco, offering a comprehensive range of communications solutions in voice telephony, mobile, data services and multimedia applications. Continually evolving, Telekom Malaysia has diversified its services and products portfolio to include broadcasting, audio and videoconferencing, customised network, consultancy and education.

With an operating revenue of almost RM12billion in 2003, Telekom Malaysia is the leader in fixed line telephony, a major player in the cellular industry and the largest Internet Service Provider in the region. With a staff strength of 30,000 employees group wide and a global presence in 11 countries, Telekom Malaysia has a long track record of keeping a diverse rural and urban population in touch with each other. Telekom Malaysia is among the nation's most profitable companies and preferred employer. The Company is set to play a continuing role in nation building, leading the way for digital communications in Malaysia.

For further information on Telekom Malaysia, visit www.telekom.com.my.

About MAS

Malaysia Airlines started off historically when its predecessor, Malayan Airways Limited, commenced a charter service from Singapore to Kuala Lumpur on 2 April 1947 using a twin-engine Airspeed Consul aircraft.
From a small charter service provider, Malayan Airways Limited evolved into Malaysian Airways Limited in 1963, Malaysia-Singapore Airlines on 9 August 1965, Malaysian Airline System Berhad on 1 October 1971 and finally Malaysia Airlines on 15 October 1987. Since then, the airline has grown into a truly global ambassador of the country, whilst matching national aspirations to provide an affordable, safe and reliable domestic air service within Malaysia.
It is now one of Asia's largest carriers, operating one of the world's youngest fleet of more than 100 aircraft flying almost 40,000 passengers daily to over 100 destinations across 6 continents. As an airline taking pride in its commitment to go beyond customer expectations, it continues to elevate its service standards to consistently new highs, raising its ranking as a carrier of choice and gaining consistent global recognition as a top international carrier.