TM Sells Stake In Telekom Networks Malawi To MTL Mobile Limited


Asia's emerging communications leader continues to register strong growth

25 Jan 2007, Kuala Lumpur -- Telekom Malaysia Berhad (TM), the emerging leader in Asian communications with operations in nine Asian countries, recorded yet another impressive growth of 39.7 percent in regional mobile subscriber numbers, growing from 20.4 million a year ago to 28.5 million as at end-December 2006. Its subsidiaries in Sri Lanka, Indonesia and Bangladesh were key contributors to this growth.

"International operations continue to contribute significantly due to our efforts to derive synergy and enhance value from our investments," said Yusof Annuar Yaacob, Chief Executive Officer of TM International Sdn Bhd, TM's international investment arm.

"For the 2006 financial year, international operations in revenue terms continued to grow from RM1,809 million (FY2005) to RM4,165 million (FY2006)* (USD1 = RM3.6662). This represents a 25 percent contribution to TM Group revenues (which stood at RM16.4 billion in 2006), up from 13 percent in 2005. Total international capital expenditure stood at RM2,832 million, up 19 percent from 2005, driven primarily by aggressive network expansion in Indonesia," Yusof added.

Headquartered in Kuala Lumpur, Malaysia, TM's Asian mobile operations include stakes in Indonesia's PT Excelcomindo Pratama Tbk (59.63 percent), Bangladesh's TM International Bangladesh Limited (70 percent), Sri Lanka's Dialog Telekom Limited (89.62 percent), India's Spice Communications Limited (49 percent), Singapore's MobileOne Limited (29.79 percent), Cambodia's Telekom Malaysia International Cambodia Company Limited (100 percent) and Iran's Mobile Telecommunications Company of Esfahan (49 percent). It has non-mobile operations in Pakistan's Multinet Pakistan (Private) Limited (78 percent), Thailand's Samart IMobile Company Limited (24.42 percent) and Samart Corporation Public Company Limited (18.98 percent).

Yusof explained that in 2007, TM will adopt a two-pronged strategy; firstly, to consolidate its leading position in existing regional markets, and secondly, study all new commercial opportunities in Asia in detail, with great focus on the Indochina market, in order to grow its existing regional footprint.

"We will give particular focus on the dynamic economies of Indochina since these markets have great growth potential in the telecommunications sector," he added.

* For 2005, TM International figures include 2 months of PT Excelcomindo Pratama (XL)'s contribution. For 2006, TM International figures include 8 months of Spice Communications' contribution.

About TM
TM, an emerging leader in Asian communications, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies in Malaysia with a market capitalisation of USD8.38 billion, TM delivers value to its stakeholders in a highly competitive home 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 achieving sustainable growth in both the local and international markets.

TM has interests in nine key markets within Asia - Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran. TM has an impeccable track record of adding value to its investments, working closely with its subsidiaries to achieve strong market positions and profitability.

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