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(22 December 2005) Telekom Research & Development Sdn. Bhd. (TMR&D), a wholly-owned subsidiary of Telekom Malaysia Berhad (TM) signed a Memorandum of Understanding (MOU) with Huawei Technologies Co. Ltd. of China which will promote cooperation between both parties in R&D and collaboration activities. It signifies a step forward in forging a closer relationship between TM Group of company, in particular TMR&D and Huawei.

With this MOU, TMR&D and Huawei will have access to each other's facilities and will jointly develop software and applications used in telecommunication industry and in the development of products based on new communication standards. Both parties will actively participate in cooperative research, research contracts, consultancy, training and industrial attachment, among others. Potential areas identified for the collaboration includes development of WiMax, 4G systems, Video Streaming, Fraud Management System, Security System, Triple Play Solution, Intelligent Applications and much more.

Speaking at the signing ceremony, Dr Shahruddin Muslimin, Chief Executive Officer of TMR&D said, "This collaboration with Huawei will bring about mutual benefits to both parties. For TMR&D, we are excited about this tie-up as it will provide a boost to our R&D efforts in that we can learn from Huawei's expertise to synergise with our own R&D efforts in the same area, to produce solutions suited to the needs of the local telco industry."

Commenting on the areas of cooperation between Huawei and TMR&D, Mr. Zhang Sen said that both parties will commit to meet regularly to share information and activities of mutual interest. "We are keen to promote cooperation in programmes and activities that are deemed to be economically desirable and feasible in areas such as software and application for communications, new communication standards and communication service platform"he added.

At the signing, TMR&D was represented by Dr Shahruddin with Encik Zamzamzairani Md Isa, Senior Vice President Group Strategy & Technology of TM as the witness. Huawei was represented by Mr Zhang Sen, the Country Manager and Mr Lie Ji, SVP International Marketing of Huawei Technologies Co. Ltd.

The signing ceremony was witnessed by YB. Dato'Seri Syed Hamid Albar, Minister of Foreign Affair Malaysia; YB. Dato'Mah Siew Keong, Deputy Minister of International Trade and Industry Malaysia; Dato'Syed Norulzman, Ambassador of Malaysia to China; Chairman of TMR&D, Mr. Tan Poh Keat; Mr. Li Zhaoxing, Foreign Minister of People"s Republic of China; Mr. Wang Chungui, Ambassador of People's Republic of China to Malaysia; Mr. Wu Dawei, Vice Foreign Minister of People's Republic of China and Mr. Yu Guangzhou, Vice Minister of Commerce of People's Republic of China.

About TM

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 RM13 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 12 countries around Asia and globally, TM is focused on achieving sustainable growth in both the local and international markets.

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

Telekom Research & Development, a wholly-owned subsidiary of TM, began its operation on 1st January 2001. It is at the forefront for research and development activities in TM. The company plays a leading role for new network and leading edge technologies through designing, and fabrication for telecommunications industries. The company's R&D activity covers the area of Basic Research, Applied Research and Experimental Development in Photonics, Microelectronics, Access and Core Network Technology, Software Applications and Multimedia and also Support System.

For more information about TMR&D please visit their website at http://www.tmrnd.com.my