Another Lankan Company For Go on Sale

GTH buys Rs. 32 b stake in SLT

Single largest transaction in the history of the Colombo Stock Exchange:

Global Telecommunications Holdings N.V. ("GTH"), a wholly-owned subsidiary of Usaha Tegas Sdn Bhd ("UT"), a Malaysia based investment holding company, acquired 635,076,318 shares representing 35.19% of Sri Lanka Telecom PLC ("SLT" or the "Company") from NTT Communications Corporation for a purchase consideration of Rs. 32 billion.

As a result of this acquisition, GTH will be required to undertake a Mandatory General Offer for the remaining shares of SLT which it does not already hold. An offer document containing all details of the offer will be sent to shareholders in due course.

The Board of GTH views the investment in SLT to be a strategic investment and looks forward to working with the other shareholders of the Company, including the Government of Sri Lanka and government related and other Sri Lankan institutions, to further grow the company and enhance shareholder value.

GTH, through common ownership, is affiliated to Maxis Communications Berhad which is regarded as one of the leading telecommunication service providers in Asia with operations in Malaysia, India and Indonesia.

GTH and UT will commit resources to support the Board and management of SLT to create additional opportunities for its employees and to achieve the overall objectives of the Company.

The investment in SLT, which builds on the historical, cultural and trading relations between Sri Lanka and Malaysia, is the largest single transaction on the Colombo Stock Exchange, and reflects confidence in the long term prospects of the Sri Lankan economy and that of the telecommunications sector.

Usaha Tegas Sdn Bhd Incorporated Malaysia is an investment holding company with significant and controlling interests in several entities involved in telecommunications, broadcasting and media, leisure and entertainment, energy and property development and ownership - including Maxis Communications Berhad, Astro All Asia Networks plc, Powertek Berhad and Overseas Union Enterprise Limited among others.

UT is based in Kuala Lumpur, Malaysia while its investment and business interests are held both within and outside Malaysia.

UT is controlled by the trustee of a discretionary trust, the beneficiaries of which are members of the family of Ananda Krishnan Tatparanandam and foundations including those for charitable purposes.