DiGi selects Siemens as technology partner

Press Release
January 26, 2006

DiGi selects Siemens as technology partner
Letter of Intent for 3G investment and roll-out

Shah Alam, 27 January 2006:DiGi Telecommunications Sdn Bhd today signed a Letter of Intent with Siemens Malaysia Sdn Bhd for it to be the provider of equipment and services for the initial phase of the proposed 3G network.

The Letter of Intent covers a multi-million ringgit comprehensive package to upgrade existing network and to supply, install and maintain the proposed 3G network. The total value depends on the outcome of DiGi's application for 3G spectrum.

DiGi has, as earlier announced, allocated a capital expenditure of between RM800 million and RM900 million for 2006, which includes upgrading existing network and start-up of the proposed 3G network.

DiGi Telecommunications Sdn Bhd Chief Executive Officer Morten Lundal said: "This Letter of Intent is one of the first steps in our preparation for 3G."

DiGi submitted a strong application containing "an ambitious but realistic and credible case for rolling out 3G".

Lundal said: "We have a positive mindset and are working quietly but confidently on our plan for a roll-out filled with innovative products and services designed to attract even the most discerning customer."

He added: "Today, we are providing a very wide range of content services. We want to be able to do more and significantly expand Malaysia's local content community."

DiGi started identifying technology partners in support of the government's call to accelerate the development of 3G. The Malaysian Communications and Multimedia Commission (MCMC) is scheduled to announce a decision by end-February.

Siemens, as the initial provider, will be actively involved in ensuring the successful launch of 3G services in 2006. It will start installing some of the equipment and run tests upon approval from MCMC.

Lundal said DiGi's application for 3G spectrum is in line with its commitment to contribute significantly to Malaysia's success in a global environment.

"DiGi will continue to invest significantly in industry development, developing and implementing new and innovative business models, promoting businesses, including SMEs, and human resource development. All this will be further enhanced," he added.

DiGi pioneered 3G-like services, including wireless high speed multimedia and mobile Internet access using its broadband EDGE network, Malaysia's Widest HighSpeed Mobile Coverage. This high-speed mobile broadband network will continue to play a significant role for many more years and is being upgraded to complement the proposed 3G network.

Lundal noted a recent survey revealed that many handphone users are still not aware of 3G and a majority of those who know find no compelling reasons to use 3G.

Lundal said: "We look forward to an opportunity to reverse this because DiGi is different. DiGi is innovation developed by a rich pool of local and global talent with the passion for constant evolution. We will continue to introduce many more 'firsts'. Not just being first but successful too."

DiGi's confidence is boosted by parent company Telenor's decision to locate the Telenor Research and Innovation Centre Asia Pacific in Cyberjaya.

As Telenor's first research and innovation centre outside Norway, the RM45 million centre will work seamlessly with the Oslo centre to serve as Telenor's window to Asia and Asia's window to the world.

About DiGi
DiGi is a leading mobile communications company providing a comprehensive range of affordable, convenient and easy to use wireless services to simplify and enrich the lives of its customers. We create value for our customers by selecting the most appropriate cutting edge technology so that they benefit from products and services that give them choice, convenience and control.

We have an established presence as a leader in voice and data prepaid services with a number of firsts that have set industry benchmarks for creativity and innovation. These services are offered under the DiGi Prepaid brand name. Our postpaid service under the DiGi Postpaid and DiGi Business deliver high quality voice as well as value-added mobile content and data services to both individual and corporate customers.

Issued by:
Corporate Communications Department
DiGi Telecommunications Sdn Bhd
Lot 10, Jalan Delima 1/1
Subang Hi-Tech Industrial Park
40000 Shah Alam, Selangor Darul Ehsan