TM DEMERGER EXERCISE COMPLETED, GENERATING 21% RETURNS TO SHAREHOLDERS

TM International Berhad's (TMI) listing on Bursa Malaysia today culminates the successful completion of the demerger exercise of Telekom Malaysia Berhad (TM). The stock opened at RM8.10, 3.2% above the reference price of RM7.85, and closed at RM7.55 today, generating the highest level of volume interest amongst the counters listed on the benchmark KLCI index today.

Meanwhile, TM share price closed at RM3.56, after its share price was adjusted for the entitlement for TMI shares last Wednesday, 23 April 2008.

The combined price of TM and TMI shares of RM11.11 is 21 sen higher than the closing share price on 22 April 2008 of RM10.90 (the day prior to the ex-entitlement date) and approximately 15% above RM9.70, the closing price on the day before the demerger exercise first announced at the end of September last year, demonstrating the shareholder value creation from the demerger exercise. In the same period since the announcement of the demerger, the benchmark KLCI index has fallen by approximately 3%.

The combined market capitalisation of TM and TMI based on today's closing price is RM41.1 billion, representing an approximately 23% increase from TM's market capitalisation of RM33.4 billion on the day the demerger exercise was first announced.

In addition, prior to the demerger exercise being completed, TM has also paid substantial dividends to shareholders of approximately RM2.2 billion, comprising a special net dividend of 48.1 sen per share and final net dividend of 16.3 sen per share, representing dividend returns of approximately 6.6% to shareholders.

As a result of the ongoing operational improvements from the TM Performance Improvement Program, better capital management and the demerger transaction, the total returns to shareholders from the day prior to the demerger announcement to today is approximately 21%.

TMI has an attractive and unique portfolio of controlled assets and is well positioned to benefit from the Asian macro growth story. The market performance of the demerged TM and TMI demonstrates the fact that the demerger transaction has  created value for shareholders.

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