• Qatar Telecom to invest a 25% equity stake in Asia Mobile Holdings

Singapore and Qatar, 15 January 2007 - Singapore Technologies Telemedia Pte Ltd ("ST Telemedia"), a leading information-communications company with operations in the Asia-Pacific, the Americas and Europe, and Qatar Telecom (Qtel) QSC ("Qtel"), one of the Middle East’s fast-growing telecommunications companies, today announced the formation of a new strategic alliance to explore and invest in new mobile telecoms opportunities while strengthening existing businesses in the Asia-Pacific region.

Agreements for the strategic alliance were signed on 12 January 2007 by ST Telemedia’s Deputy Chairman, Mr. Peter Seah, and President and Chief Executive Officer, Mr. Lee Theng Kiat; and Qtel’s Group Chairman, HE Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, and Chief Executive Officer, Dr. Nasser Marafih. Under the terms of the Agreements, Qtel will invest up to US$635 million in cash for an approximate 25 percent equity stake in ST Telemedia’s Asia Mobile Holdings Pte. Ltd. ("AMH"). ST Telemedia will remain the controlling shareholder with an approximate 75 percent equity stake in AMH. The transaction values AMH at an enterprise value of up to US$3.5 billion. AMH will be the parties’ preferred vehicle for future mobile telecoms investments in selected key markets in the Asia-Pacific region.

AMH currently holds ST Telemedia’s stakes in StarHub Ltd, Singapore’s second largest info-communication company, and PT Indosat Tbk, Indonesia’s second largest operator with over 14 million mobile subscribers. This strategic alliance will not impact ST Telemedia’s existing and potential investments in the Americas, Europe and other regions.

"This strategic alliance with Qatar Telecom represents another important step forward in our relationship. ST Telemedia is pleased and excited to work with a distinguished and like-minded partner who shares our goal of expanding our footprint in the Asia-Pacific region. The formation of this strategic alliance reaffirms ST Telemedia’s commitment to grow and strengthen our mobile business in the region," said Mr. Peter Seah, Deputy Chairman of ST Telemedia.

"The strategic partnership with Qtel is a major milestone for ST Telemedia. It underscores our commitment to the Asia-Pacific region and to the continued success of our existing companies. We believe this alliance, which is based on shared values and goals, will bring significant long term value to all our stakeholders. ST Telemedia remains fully committed to StarHub and Indosat and we intend to continue to play a strategic role in their businesses through AMH. ST Telemedia and Qtel’s combined industry experience, technological capabilities and extensive complementary networks will enhance our ability to pursue new mobile opportunities and bring potential synergies to our existing businesses," said Mr. Lee Theng Kiat, President and Chief Executive Officer of ST Telemedia.

His Excellency Sheik Abdullah Al Thani, Qtel’s Group Chairman, said "We are extremely pleased to partner with ST Telemedia, with whom we have a long and established relationship. We respect the values that ST Telemedia has instilled in their investee companies and we look forward to working with them to pursue opportunities in the region. Our intention is to work with ST Telemedia to grow regionally and generate value by sharing operational practices and methods across the wider group."

Dr. Nasser Marafih, Qtel’s Chief Executive Officer, said "This partnership represents the next step in Qtel’s growth strategy, and allows Qtel to establish an immediate presence in two key markets, Singapore, an advanced market, and Indonesia, the fourth most populous country in the world. We believe that the Asia-Pacific is a high growth region and is one of the main areas we have targeted for our expansion. We are excited about the prospects for growth in the region and believe ST Telemedia is an ideal partner for us in this endeavour."

ST Telemedia and Qtel occupy strong market positions in their respective markets and have complementary geographic footprints for potential strategic and operational synergies. With their proven track record of managing leading telecommunications companies around the world, particularly in the Asia-Pacific and the MENA regions, ST Telemedia and Qtel’s combined local, regional and international experience, management excellence and technical expertise will benefit existing businesses and future investments.