Contents :

We refer to the query letter dated 9 October 2000 from the Exchange regarding the article appearing in the Sun, Sun Biz, Page 1, on Monday, 9 October 2000, wherein it was stated as follows :-

"One is a listing as an infrastructure project company (IPC) on the KLSE in 2002."

"Prior to listing, TM Touch might find a foreign partner which can offer traffic although that partner might take up equity in Telekom instead."

We wish to clarify to the Exchange that the above statements were general opinion statements made by the Chief Executive Officer of the Company's cellular subsidiary, Telekom Cellular Sdn Bhd. He was expressing his views that the company should target to secure a foreign partner and be listed on the KLSE, preferably by 2002.

We wish to inform the Exchange that TM will continue to pursue its intention to secure a foreign partner and an appropriate announcement will be made to the Exchange when a firm decision is in place. Although listing of the cellular subsidiary is being considered, the plan and date of listing have yet to be finalised.

Query Letter Contents :

We refer to the above news article appearing in The Sun, Sun Biz, page 1 , on
Monday, 9 October 2000, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
"One is a listing as an infrastructure project company (IPC) on the KLSE in
2002."
"Prior to listing, TM Touch might find a foreign partner which can offer
traffic although that partner might take up equity in Telekom instead."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully


LISA LAM
Senior Manager, Listing Operations
LL/ASL/ZOOS
c.c. Securities Commission (via fax)