TELEKOM MALAYSIA CLARIFIES ITS EXIT FROM GUINEAN INVESTMENT

Telekom Malaysia Berhad (TM) refers to the story by an international news agency datelined Conakry and published in a major local daily on 13 December 2005. This press statement has been prepared to clarify TM’s position regarding its exit from its investment Societe des Telecommunications de Guinee (Sotelgui s.a.).

“In a joint decision taken with senior Government of Guinea (GoG) officials, TM has decided to cease all operational and managerial control of Sotelgui as the initial step to our total exit from Guinea. In the interest of the strong relations between both countries, both parties are focused on an expeditious and smooth handover of operational responsibility to Guinean representatives,” said Yusof Annuar Yaacob, Chief Executive Officer of TM International Sdn Bhd (TMI).

Yusof explained that TM would continue to have Board representation in Sotelgui and the Board will oversee the new management, until all other exit-related issues including equity transfer are finalised. As shareholders of Sotelgui, both TM and GoG have a mutual interest in concluding a sale process as soon as possible, he said.

TM had early this year explained that its plans to divest its Guinean investment was part of a broader strategic decision to divest all its African investments. This is in keeping with its international strategy to focus on geographic regions closer to home. TM had officially informed the GoG of its intention to exit in December 2004 and both had commenced discussions based on the common understanding that TM’s decision to exit is a strategic one.

TM’s investment in Guinea commenced on 23 December 1995 with the signing of a Joint Venture Agreement (JVA) with the Government of Republic of Guinea (GoG). The JVA was for the 60 per cent stake in Sotelgui s.a. (or the Telecommunications Company of Guinea) which TM currently holds, with the remaining 40 per cent being held by GoG. TM initial investment was for US$45 million.

TM has been involved in the development of Sotelgui’s fixed line and cellular infrastructure for over ten years, working with the people of Guinea to build a network that delivers reliable and affordable telecoms services. As at September 2005, Sotelgui had over 161,800 active subscribers.


About TM
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 12 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

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


About TM International Sdn Bhd
Through its investment-holding arm, TM International, TM is one of the leading regional telecommunications companies with interests in Singapore, Sri Lanka, Bangladesh, Pakistan, Indonesia, Thailand and Cambodia. It also has selected investments in Africa namely in Guinea and Malawi.

TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.

Activated in 2001, TM International contributes significantly to TM’s overall performance. In the financial half year ended 30 June 2005, TM’s overseas investments contributed operational profit after tax of RM203.4 million (or 25.4 per cent), compared to RM291.9 million (or 20 per cent) in the corresponding period in 2004.