TM COMPLETES DEMERGER EXERCISE, ANNOUNCES NEW BOARD LINE-UP

TM COMPLETES DEMERGER EXERCISE

Telekom Malaysia Berhad (TM) successfully completed its Demerger exercise today with the closure of its register of shareholders for the purpose of transferring TM International Berhad (TMI) shares into the CDS accounts of the entitled TM shareholders. The completion of the exercise will be culminated with the listing of TMI on the Main Board of Bursa Malaysia on 28 April 2008.

TM first announced in September 2007, that it was undertaking a Demerger exercise to create two vibrant entities to serve the different market segments within the telecommunications industry namely RegionCo (TMI) which will include TM’s mobile and overseas operations under TM International, and domestic mobile operations under Celcom (Malaysia) Berhad, focused on becoming a successful pure-play regional mobile operator. FixedCo (TM), on the other hand, which will retain the listed TM’s domestic interests in fixed-line voice, data, broadband and non-telecommunication related business, will focus on leading the broadband penetration in Malaysia. TM then revealed the final details of the exercise in December 2007. TM made an announcement on 11 April 2008 that it met all the conditions set by the relevant Malaysian regulatory authorities for the Demerger and the listing of TMI.

Commenting on the completion of the demerger exercise, Tan Sri Dato’ Ir. Md. Radzi Mansor, Chairman, TM said, “We are glad that the demerger exercise is successfully completed as planned. Perhaps I can speak on behalf of all members of TM Group that we are proud to have contributed towards building TM into one of Malaysia’s leading companies and an emerging leader in Asian communication. With the completion of the Demerger, we have created 2 formidable entities with solid foundation and strength to strongly compete in their respective areas. TM is certainly looking forward to another exciting phase of development. The ICT landscape is fast changing and connectivity has become a necessity. As a leading player in the broadband market, TM definitely has an important role to play. TM will focus on leading the broadband penetration in Malaysia and establish Malaysia as a regional Internet Protocol (IP) hub, serving as a digital gateway for South-East Asia.”

NEW BOARD LINE-UP FOR TM

TM also announced the new line-up for the Board of Directors of the Company effective from today. The new Board of TM comprises a total of ten (10) members and is led by Tan Sri Dato’ Ir. Md Radzi Mansor as the Chairman. In line with the completion of the demerger exercise, the new Board line-up comprises new board members with strong functional skills and experience in areas such as industry, business leadership, accountancy and regulatory which are necessary for the ‘post-Demerger’ TM.

The full line-up of TM’s new Board of Directors:

Commenting on the new appointments, Tan Sri Dato’ Ir. Md. Radzi Mansor, Chairman, TM said, “I am delighted to welcome such a distinguished group of individuals to the TM Board. I am certain that the newly appointed board members will carry on the good work to provide vision and insights to guide TM at this pivotal time in the Company's development. Their vast experience will be of great value in charting the next phase of growth for TM. I look forward to their active participation and contribution as a Board member.”

These appointments are expected to further strengthen the TM Board. Each new Board member has a proven track record in their chosen fields of business, industry, accountancy and regulatory as well as having international business exposure.

Earlier, the TM Board accepted the resignation of five of TM’s existing directors, namely Dato’ Azman Mokhtar, Dato’ Ir Dr Abdul Rahim Daud, Dato’ Lim Kheng Guan, Ir Prabahar NK Singam and Rosli Man. As previously announced, Dato’ Sri Abdul Wahid Omar retired as a Director of TM upon the conclusion of TM’s Annual General Meeting (AGM) on 17 April 2008.

Tan Sri Dato’ Ir Md. Radzi paid tribute to the outgoing Directors and thanked them for their invaluable contribution, “They have provided invaluable support with their active participation in deliberating the proposals put forward by the management. Their foresight and stewardship has enabled TM to implement many initiatives crucial to the long-term growth of the Company. TM’s transformation journey leading up to the demerger exercise which we have just completed is a testament of their strong commitment.”

Pursuant to an extensive search process, the following individuals have been identified to join the Board of TM:

YM Tunku Mahmood Fawzy Tunku Muhiyiddin

Tunku Mahmood Fawzy, 49, is currently an Executive Director, Investments at Khazanah Nasional Bhd. He holds a BA (Hon) degree in Business Studies from the Polytechnic of Central London, a Masters Degree in Business Administration (MBA) from Warwick University, and a Diploma in Marketing from the Chartered Institute of Marketing. He is also a member of the Malaysian Institute of Management.

Tunku Fawzy accumulated more than 20 years of international work experience in companies of various industries, banking, information technology, investment holding, shipping, oil and gas. He joined Khazanah as a Director, Investments in May 2007.

He currently sits on the board of Pos Malaysia Berhad.

Dato’ Ir. Abdul Rahim Abu Bakar

Dato’ Ir. Abdul Rahim, 62, is currently Chairman of UEM Builders Berhad and an Independent Director on the Board of UEM World Berhad.

Dato’ Ir. Abdul Rahim graduated from the Brighton College of Technology, United Kingdom with B.Sc.(Hons) Electrical Engineering in 1969. He is a member of the Institute of Engineers, Malaysia and is a Professional Engineer, Malaysia (P.Eng). He also holds the Electrical Engineer Certificate of Competency Grade 1. Dato’ Ir. Abdul Rahim began his career in 1969 with the then National Electricity Board in various technical and engineering positions until he joined Pernas Charter Management Sdn Bhd, a management company for the tin mining industry in 1979. Then, from late 1983 to 1991, he was attached to Malaysia Mining Corporation Berhad (MMC) in various senior positions. Later from 1991 to 1995, he moved on to MMC Engineering Services Sdn Bhd and subsequently to MMC Engineering Group Berhad as the Managing Director.

In May 1995, he joined Petronas to assume the position of Managing Director of Petronas Gas Berhad and subsequently moved on to Petronas as its Vice President in charge of Petrochemical Business in 1999 until his retirement on 31 August 2002.

Dato’ Ir. Abdul Rahim is also a director of Bank Pembangunan Malaysia Berhad, Scomi Engineering Berhad, Global Maritime Ventures Berhad, Opus Group Berhad and BI Credit & Leasing Berhad.

Dato’ V. Danabalan

Dato’ Danabalan, 65 holds a B.A. Hon from the Universiti Malaya and Masters in Public Administration from Penn State, USA. He was previously the Chairman of the Malaysian Communications and Multimedia Commission (MCMC) from February 2004 until his retirement in March 2007.

Dato’ Danabalan was the Senior Vice President of the Multimedia Development Corporation Sdn Bhd (MDC) from June 1998 to January 2004. Before this post, he had served as the Secretary General for the Ministry of Science, Technology and Environment from December 1991 until March 1998. He also served as Deputy Secretary General at the Ministry of Social and Community Development and as Deputy Director at the National Institute of Public Administration.

He is currently a Director of M.U.S.T. Ehsan Foundation, Affin Fund Management Berhad, Sirim QAS International Sdn Bhd, and MIMOS Smart Computing Sdn Bhd.

Ibrahim Marsidi

Ibrahim Marsidi, 55, holds a Bachelor of Economics (Analytical) (Hons) from University of Malaya. He was previously the Managing Director and Chief Executive Officer of Petronas Dagangan Berhad before he retired in November 2007.

He joined Petroliam Nasional Berhad (Petronas) in 1979 and since then has held various senior managerial positions in Petronas. Prior to his appointment as Managing Director and Chief Executive Officer at Petronas Dagangan Berhad, he was the Senior Manager of Eastern Region and Northern Region, General Manager of Liquified Petroleum Gas (LPG) Business and Retail Business in Petronas Dagangan Berhad, and General Manager of Crude Oil Group, Petronas. .

Quah Poh Keat

Quah, 55, retired from KPMG Malaysia in December 2007. He is a Fellow of the Malaysian Institute of Taxation and the Association of Chartered Certified Accountants (ACCA); and a Member of the Malaysian Institute of Accountants (MIA), the Malaysian Institute of Certified Public Accountants (MICPA) and the Chartered Institute of Management Accountants (CIMA).

Quah was a partner of KPMG since 1 October 1982 and was the Senior Partner of the Firm responsible for the daily operations of KPMG Malaysia. Prior to taking up the position of Senior Partner (Managing Partner), he was in charge of the Tax Practice and the Japanese Practice in KPMG Malaysia. He was a member of the KPMG Japanese Practice Council, which is the governing body within KPMG International, which looks after the Japanese Practices in the KPMG world. He was a Board Member of KPMG Asia Pacific that oversees KPMG operations in Asia Pacific and a Member of KPMG International Council that oversees KPMG's global operations.

Quah was also a past Vice-President of the Malaysian Institute of Taxation and a Member of the Federation of Malaysian Manufacturers Economic Policies Committee.

Quah also sits on the board of IOI Corporation Berhad and PLUS Expressways Berhad

Dato’ Zamzamzairani Mohd Isa

Dato’ Zamzamzairani, 47, is currently the Managing Director/ Group Chief Executive Officer, TM. He holds a Bachelor of Science degree in Communication Engineering from Plymouth Polytechnic, United Kingdom and has attended the Kellog School of Management’s programme in ‘Corporate Finance, Strategies for Creating Shareholder Value’.

He has vast experience in the telecommunications industry and has held senior management positions in several multinational companies within the industry, such as Global One and Lucent Technologies (Malaysia). He previously held several key positions in TM as the Senior Vice President, Group Strategy and Technology  and Chief Executive Officer of Malaysia Business before assuming his current position. Dato’ Zamzamzairani also sits on the boards of several TM Group subsidiaries, including VADS Berhad.

Datuk Bazlan, 44, is currently the Group Chief Financial Officer of TM.  He is a Fellow of the Association of Chartered Certified Accountants, United Kingdom and also a Chartered Accountant of the Malaysian Institute of Accountants.

He began his career as an auditor with a public accounting firm in 1986 and subsequently served the Sime Darby Group, holding various positions in its corporate office, Singapore and Melaka. He later had a brief stint in American Express in 1993 before joining Kumpulan FIMA Berhad in 1994, where he was subsequently appointed Senior Vice President, Finance/Company Secretary. He joined Celcom (Malaysia) Berhad in 2001 and was the Chief Financial Officer (CFO) prior to his appointment as TM Group CFO on 1 May 2005. He sits on the boards of two public listed companies and several private companies of the TM Group. He is also a member of the Issues Committee of the Malaysian Accounting Standards Board.

Dr Farid Mohamed Sani

Dr Farid, 32, is currently Senior Vice President, Managing Director’s Office at Khazanah Nasional Berhad. He received his PhD in Chemical Engineering from University of Cambridge. He also has a MEng and BA(Hons) from University of Cambridge with a specialisation in Chemical Engineering. He graduated with First Class Honors.

Dr Farid has been with Khazanah since 2004 and has also served in Khazanah’s Transformation Management Office. Prior to that, Dr Farid was a consultant at Mckinsey & Co for two years.

Dr Farid is the alternate director to Tunku Fawzy on the Board of TM and also an alternate director to Ismael Fariz Ali on the board of TM International Berhad. 

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 RM17.8 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 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University into one of the top universities in Malaysia with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.

On 28 September 2007, TM announced that it is undertaking a Demerger exercise to separate its mobile and fixed businesses. The exercise will result in the creation of two separate telecommunication entities, with distinct business strategies and aspirations, namely, RegionCo (TM International Berhad) as the regional mobile entity and FixedCo (TM) as the domestic broadband entity. The exercise will be completed on 25 April 2008 and TM International Berhad is expected to be listed on 28 April 2008.

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

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