TM TO COMPLETE DEMERGER EXERCISE AND LISTING OF TMI BY END OF APRIL

Telekom Malaysia Berhad (TM) today held its 23rd Annual General Meeting (AGM) at its headquarters, Menara TM. 1,458 shareholders attended the AGM to vote for the ten ordinary resolutions and one special resolution that were presented.

23RD ANNUAL GENERAL MEETING

The shareholders voted in favour of all the resolutions that were put forth at the AGM.

“In particular, I am pleased to announce that the shareholders approved a final gross dividend of 22 sen per share less 26% tax. This together with the interim gross dividend of 26 sen per share less 27% tax paid in September 2007, brings the total ordinary dividend payout for financial year 2007 to RM1,212.9 million, representing a payout ratio of 47.6 %. Including the special dividend of RM1,654.5 million paid in January this year to shareholders, TM has returned close to RM3 billion of dividends back to shareholders,” said Tan Sri Dato’ Ir. Md. Radzi Mansor at a press conference held after the meeting.

Besides approving the directors’ fees, re-election of a director appointed during the year and directors who retired by rotation, the shareholders also voted in favour of the new shareholders’ mandate for recurrent related party transaction of a revenue or trading nature (RRPTs).

The shareholders also approved general amendments to the TM’s Articles of Association to ensure that the articles are in compliance with regulatory and statutory provisions as well as for administrative efficiency.

During the meeting, Tan Sri Dato’ Ir. Md. Radzi also announced that Dato’ Sri Abdul Wahid Omar, Group Chief Executive Officer, did not seek for re-election as a Director as he has tendered his resignation to take up the appointment as President and CEO Designate of Maybank. Once again, Tan Sri Dato’ Ir. Md. Radzi Mansor thanked Dato’ Sri Abdul Wahid for his significant contributions throughout his tenure with the Group.

TM DEMERGER ON TRACK FOR COMPLETION BY END APRIL

During the meeting, the shareholders were also informed that Demerger exercise is on track for completion on 25 April 2008 while the listing of TM International Berhad (TMI) on Bursa Malaysia will take place on 28 April 2008.

For the implementation of the Demerger, TM shares will trade ex-entitlement on 23 April 2008. This will result in TM shares trading solely on the basis of its domestic fixed line, broadband and related businesses and without contribution from TMI and Celcom. The market price of TM shares will be adjusted downwards on that day to reflect the TMI shares distributed to TM shareholders. The last day to acquire TM shares for entitlement to TMI shares is 22 April 2008. TM shares bought from 23 April 2008 onwards will not be entitled to TMI shares. TMI shares will be credited into the CDS accounts of TM shareholders on 25 April 2008 with a targeted listing on the Main Board of Bursa Malaysia on 28 April 2008.

TM first announced in September 2007, that it proposed to undertake the Demerger exercise to create two vibrant entities to serve the different market segments within the telecommunications industry.

• RegionCo (TMI) will include TM’s mobile and overseas operations under TMI, and domestic mobile operations under Celcom (Malaysia) Berhad focused on becoming a successful pure-play regional mobile operator in South and Southeast Asia. With a large population base and low overall mobile penetration, the current asset portfolio offers strong growth potential.

• FixedCo (TM), on the other hand, will retain the listed TM’s domestic interests in fixed-line voice, data, broadband and non-telecommunication related business and will focus on leading the broadband penetration in Malaysia given the strong potential for broadband growth in the country. While pursuing growth in the broadband business, TM will still continue its focus on enhancing international connectivity within the region. Besides establishing Malaysia as a regional Internet Protocol (IP) hub, this will also serve as a digital gateway for Southeast Asia.

“The details of the Demerger transaction were made public in December last year and we are now pleased to announce that we have met all relevant conditions and obtained all the necessary approvals not only from the shareholders but also the Malaysian and other relevant regulatory authorities for the Demerger and the listing of TMI. We appreciate all the support given by the respective stakeholders and it is indeed gratifying to see that a significant milestone in TM’s transformation will soon be finalised. We are confident that both TM and TMI will continue to prosper with clear opportunities ahead and enhance shareholders’ value by operating as two formidable entities. On a personal note, I am glad that I am leaving the Company with the knowledge that the two entities have a strong financial standing and are well positioned for future success,” enthused Dato’ Sri Abdul Wahid Omar, Group Chief Executive Officer of TM.

“Clearly, this is a defining moment for the TM Group. The Demerger is a bold and strategic move and we are convinced it augurs well for the two separate entities as it will accelerate performance improvement through greater performance transparency, organisational focus and improved execution capacity,” concluded Tan Sri Dato’ Ir. Md. Radzi.

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

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