Table 1: Summary of financial information

<------------------------- Audited ---------------------- FYE 31 December Turnover Loss before taxation (“LBT”) Loss after taxation (“LAT”) Net loss per share (“LPS”) Number of TdC Shares in issue (’000) Net assets Net assets per share (RM) 2006 (RM’000) 335,395 (177,076) (177,782) (7.02) 2,530,775 2,142,949 0.85 2007 (RM’000) 301,061 (160,903) (160,673) (6.35) 2,530,775 1,982,276 0.78 2008 (RM’000) 286,525 (950,471) (949,630) (37.52) 2,530,775 1,032,646 0.41 Unaudited 31 March 2009 (RM’000) 74,005 (34,682) (34,692) (1.37) 2,530,775 997,954 0.39

Commentaries FYE 31 December 2006 For the FYE 31 December 2006, the TdC Group recorded a revenue of RM335.4 million compared to the FYE 31 December 2005 of RM459.9 million. The lower revenue for the FYE 31 December 2006 was mainly attributable to the lower revenue from payphone and voice. However, the TdC Group’s performance was improved from a LBT of RM237.9 million in the preceding year to a LBT of RM177.1 million for the FYE 31 December 2006. The improvement was due mainly to lower cost of sales and operating expenditure, a testimony to the cost management measures instituted by the TdC Group. FYE 31 December 2007 For the FYE 31 December 2007, the TdC Group recorded a revenue of RM301.1 million compared to RM335.4 million in the preceding financial year. The lower revenue was mainly attributable to stiffer competition resulting in lower usage of fixed-line voice and payphone services. Nonetheless, the main revenue contributors during the year under review were the TdC Group’s voice and payphone services, which contributed to RM175.9 million or 58.4% to TdC’s total revenue. Other significant contributions to the revenue are data and broadband services which amount to 30.1% of the total revenue. For the period under review, the TdC Group’s performance improved from a LBT of RM177.1 million in the preceding year to a LBT of RM160.9 million for the FYE 31 December 2007. The lower losses was due to stringent control over operational costs and lower depreciation and amortisation as more assets are fully depreciated.

FYE 31 December 2008 For the FYE 31 December 2008, the TdC Group recorded a revenue of RM286.5 million as compared to RM301.1 million for the FYE 31 December 2007. The decrease in revenue was largely contributed by declining payphone and fixed line revenues. While data and managed services revenue rose by 55.8%, the rise was not significant to offset the 23.3% loss in voice and payphone revenue from year 2007 to 2008. The Group registered LBT of RM950.5 million in the FYE 31 December 2008 compared to a LBT of RM160.9 million in 2007. The losses were due to assets write-off, provisions for impairment of goodwill, assets and inventories, as well as provisions for diminution in value of other investment amounting to RM1,303.8 million. At the same time, the TdC Group revised the useful life of its telecommunications network resulting in additional depreciation charges of RM198.5 million. The TdC Group also incurred finance cost of RM72.3 million in relation to loans obtained in 2007 to finance the purchase of DIGI shares. FYE 31 March 2009 The TdC Group achieved revenue of RM74.01 million as compared to RM66.04 million in the corresponding period in 2008. The higher revenue is due mainly to the higher data revenue by RM13.9 million offset by reduction in voice revenue of RM5.9 million. The TdC Group posted a current quarter loss before tax of RM34.68 million compared to RM55.98 million in the corresponding period in 2008. The lower loss was due mainly to lower depreciation and finance charge in the current quarter offset by loss on disposal of DiGi shares of RM23.1 million.

(All the abbreviations used in this announcement are as defined in the previous announcement dated 18 February 2009.) Table 2: NA and Gearing of the TIME Group and the Company TIME – Group Level The proforma effects of the Proposed Restructuring Exercise (save for the Proposed M&A Amendment which does not have any effect on the Proposed Restructuring Exercise) on the NA and gearing of the TIME Group based on the audited financial statements of TIME as at 31 December 2008 are set out as follows: (I) (II) (III) (IV) After (III) and assuming full redemption of the TIME RSLS RM’000 170,554 (38,687)(e) 131,867

Audited as at 31 December 2008 RM’000 Share capital Share premium Capital reserve Accumulated losses Shareholders’ equity / NA Par value per ordinary share (RM) Issued and paid-up share capital (’000) NA per share (RM) NA / Share capital (%) Total borrowings (RM’000) Gearing (times) 775,245 1,717,012 18,419 (2,392,114) 118,562

Debt Restructuring(a) RM’000 775,245 1,717,012 18,419 (2,394,314) 116,362
(b)

After (I) and Proposed Capital Restructuring(c) RM’000 155,049 (38,687) 116,362

After (II) and Proposed Private Placement(d) RM’000 170,554 (38,687) 131,867

1.00 775,245 0.15 15.29 335,474 2.83

1.00 775,245 0.15 15.01 342,000 2.94

0.20 775,245 0.15 75.05 342,000 2.94

0.20 852,769 0.15 77.32 342,000 2.59

0.20 852,769 0.15 77.32 -(e) -

Notes:
(a) (b)

Conversion of RM342,000,000 TL Facility owing to BPMB into TIME RSLS. After deducting estimated expenses of RM2.2 million for the entire Proposed Restructuring Exercise. Based on the reduction of the issued and paid-up share capital of TIME by cancelling RM0.80 from every existing TIME Share and the conversion of the TL Facility into TIME RSLS. After setting off the Company’s share premium account of RM1,717,012,458 and capital reserve account of RM18,419,328 respectively against the accumulated losses of the Company. For illustrative purposes only, assuming 77,524,468 Placement Shares based on approximately up to 10% of the issued and paid-up share capital of TIME as at the LPD are placed out at an indicative issue price of RM0.20 per Placement Share. Assuming the disposal price for TdC Shares at the end of year 2015 is at RM0.48 each, the proceeds to be received and the repayment of term loan facilities are as illustrated below: RM TIME RSLS Less: Repayment via proceeds from the disposal of 712,500,000 TdC Shares* Balance of TIME RSLS * 342,000,000 (342,000,000) -

(c)

(d)

(e)

The proposed disposal of TdC Shares is assumed to result in a no gain no loss position for TIME.

For illustration purposes only, should the Proposed Shareholders’ Mandate be implemented in full, subsequent to the redemption of the TIME RSLS, there would be a remaining balance of 13,681,720 TdC Shares. On the same assumption that these shares are disposed at RM0.48 each, there would be no effect on the financial ratios as depicted in this column (IV). The redemption of the TIME RSLS is over a period up to the maturity date i.e. 31 December 2015. Barring any unforeseen circumstances, the management of TIME is confident and expects to have positive cashflow to redeem the TIME RSLS within this period. Based on Proforma IV above, upon the full redemption of the TIME RSLS, TIME Group is expected to reduce its total borrowings by RM342.0 million to nil thus significantly improving the gearing position of the TIME Group.

TIME – Company Level Proforma effects of the Proposed Restructuring Exercise (save for the Proposed M&A Amendment which does not have any effect on the Proposed Restructuring Exercise) on the NA and gearing of TIME (company) based on the audited financial statements of TIME as at 31 December 2008 are set out as follows: (I) (II) (III) (IV) After (III) and assuming full redemption of the TIME RSLS RM’000 170,554 (22,015)(e) 148,539

Audited as at 31 December 2008 RM’000 Share capital Share premium Capital reserve Accumulated losses Shareholders’ equity / NA Par value per ordinary share (RM) Issued and paid-up share capital (’000) NA per share (RM) NA / Share capital (%) Total borrowings (RM’000) 335,474 Gearing (times) 2.48 775,245 1,717,012 18,419 (2,375,442) 135,234

Debt Restructuring(a) RM’000 775,245 1,717,012 18,419 (2,377,642) 133,034
(b)

After (I) and Proposed Capital Restructuring(c) RM’000 155,049 (22,015) 133,034

After (II) and Proposed Private Placement(d) RM’000 170,554 (22,015) 148,539

1.00 775,245 0.17 17.44

1.00 775,245 0.17 17.16 342,000 2.57

0.20 775,245 0.17 85.80 342,000 2.57

0.20 852,769 0.17 87.09 342,000 2.30

0.20 852,769 0.17 87.09 -(e) -

Notes:
(a) (b)

Conversion of RM342,000,000 TL Facility owing to BPMB into TIME RSLS. After deducting estimated expenses of RM2.2 million for the entire Proposed Restructuring Exercise. Based on the reduction of the issued and paid-up share capital of TIME by cancelling RM0.80 from every existing TIME Share and the conversion of the TL Facility into TIME RSLS. After setting off the Company’s share premium account of RM1,717,012,458 and capital reserve account of RM18,419,328 respectively against the accumulated losses of the Company. For illustrative purposes only, assuming 77,524,468 Placement Shares based on approximately up to 10% of the issued and paid-up share capital of TIME as at the LPD are placed out at an indicative issue price of RM0.20 per Placement Share. Assuming the disposal price for TdC Shares at the end of year 2015 is at RM0.48 each, the proceeds to be received and the repayment of term loan facilities are as illustrated below: RM TIME RSLS Less: Repayment via proceeds from the disposal of 712,500,000 TdC Shares* Balance of TIME RSLS * 342,000,000 (342,000,000) -

(c)

(d)

(e)

The proposed disposal of TdC Shares is assumed to result in no gain no loss position for TIME.

For illustration purposes only, should the Proposed Shareholders’ Mandate be implemented in full, subsequent to the redemption of the TIME RSLS, there would be a remaining balance of 13,681,720 TdC Shares. On the same assumption that these shares are disposed at RM0.48 each, there would be no effect on the financial ratios as depicted in this column (IV). The redemption of the TIME RSLS is over a period up to the maturity date i.e. 31 December 2015. Barring any unforeseen circumstances, the management of TIME is confident and expects to have positive cashflow to redeem the TIME RSLS within this period. Based on Proforma IV above, upon the full redemption of the TIME RSLS, TIME is expected to reduce its total borrowings by RM342.0 million to nil thus significantly improving the gearing position of TIME.

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