DiGi and Time dotCom 3G Spectrum transfer completed

KUALA LUMPUR, 7 May 2008: TIME dotCom Berhad (TdC) and DiGi.Com Berhad(DiGi) can now execute their joint business plans to strengthen their corebusinesses with the successful transfer of the 3G Spectrum from TdC to DiGi today. An allotment of 27.5 million new shares to TdC was made as well inconsideration for the transfer of the 3G spectrum with all its rights andbenefits to DiGi.

This was announced at the official transfer ceremony where Datuk Dr. HalimShafie, Chairman of the Malaysian Communications and Multimedia Commissionhanded the Spectrum assignment documents to DiGi Chief Executive Officer,Johan Dennelind. The event was witnessed by the Deputy Secretary General 1for the Ministry of Energy, Water and Communications, Dr. Mohd PadzilHashim, who represented the Minister, Yang Berhormat Dato' Shaziman AbuMansor; and Dato' Wan Muhammad Wan Ibrahim, Chairman of TdC.

As outlined in the Definitive Agreement between both parties on 25 January2008, TdC and DiGi would leverage on their respective core businesses tofully optimise the existing networks and resources currently owned by bothparties.

The 3G Spectrum transfer exercise was also approved by the shareholders ofboth parties at their respective Extraordinary General Meetings.

For DiGi, the 3G Spectrum offers opportunities to enhance its mobile networkcapacity and efficiency, and provide a platform for ongoing innovation anddevelopment of enhanced mobile and broadband services.

"We have been very successful without 3G in the past; however, we believethe timing is right for DiGi to start the rollout of broadband services toour customers. We are excited that this Spectrum will enable us tocontribute actively to the extensive deployment of broadband infrastructureand services in keeping with the aspirations of the National Broadband Plan," said Johan Dennelind.

"We are currently working hard undertaking technical trials and with theseapprovals, we are targeting to launch 3G services and mobile broadbandduring the second half of this year," he added.

"I am very happy today because with this transfer, TIME dotCom and DiGihave entered into a service agreement, which sees TIME dotCom, through oursubsidiary TT dotCom Sdn Bhd, appointed as DiGi's wholesale partner for a3-year period, contributing fixed bandwidth businesses worth at least RM12.5million each year. With the completion of the 3G Spectrum transfer, TIMEdotCom stake in DiGi will increase to 10% of the enlarged paid up capital ofDiGi," said Dato' Wan Muhamad.

The transfer of the 3G Spectrum to DiGi does not result in TIME dotComexiting from the 3G market because it will be able to participate via anMVNO arrangement with DiGi once DiGi have rolled out the 3G network. In themeantime, TIME dotCom will focus on enhancing its Next Generation-IP networkand Broadband services for the Corporate, Government and Wholesale market segments.

The completion of the 3G Spectrum transfer establishes the foundation forthe Alliance between both parties to collaborate on several business areasthat can further contribute towards enhancing the nation'stelecommunications needs. Both parties will look into:

** jointly developing new service offerings in the area of Fixed MobileConvergence;
**optimising the usage of TdC's domestic and international fibrenetworks by DiGi;
**reselling of mobile services, including Mobile Virtual NetworkOperator services by TdC for selected markets; and
**exploring mutual transfer of knowledge and technology between theemployees of both parties.