• Investment Strengthens ST Telemedia’s Vision to Become a Global IP and Data Communications Group

Singapore and Jakarta, 15 December 2002 - Singapore Technologies Telemedia (ST Telemedia) today announced that it has been selected by the Government of the Republic of Indonesia acting through the Ministry of State Owned Enterprises (MSOE) to be the winning bidder for the purchase of 434,250,000 shares of Perusahaan Perseroan (Persero) PT Indonesian Satellite Corporation Tbk (Indosat), representing 41.94 per cent of the total and issued share capital of Indosat. ST Telemedia has signed a Share Purchase Agreement with the MSOE. The transaction is expected to close by the end of this year.

ST Telemedia’s offer of Rupiah5.62 trillion, or Rupiah12,950 per share for the 41.94 per cent stake, represents a 50.6 per cent premium to Indosat’s closing share price of Rp.8,600 on the Jakarta Stock Exchange on Friday 13 December 2002.

“This is a historic moment for ST Telemedia. The investment in Indosat marks the first substantial stake ST Telemedia has made in a telecommunications company in Asia,” said Mr. Lee Theng Kiat, ST Telemedia’s President and CEO.

“We are pleased to have been selected by the Indonesian Government to advance Indosat’s business strategy and raise the company’s profile into a world class telecommunications operator. With our operating experience and proven track record, this investment will dramatically transform Indonesia’s telecommunications scene and service standards into a more competitive and customer-driven environment,” added Mr. Lee.

Through this investment, Indosat will be able to leverage on ST Telemedia’s extensive network and derive enormous operational synergies.

Strategic Rationale

Indosat’s business focus on wireless and data services fit perfectly into ST Telemedia’s vision to become a global IP and data communications group.

Indosat’s business is segmented into: Cellular and fixed communications services, Multimedia, data and Internet services, and Backbone network services. It is the second largest telecom operator in Indonesia with a subscriber base of close to 3.3 million Indosat statistics as of November 2002 and the sole service provider in Indonesia for international voice and data services (IDD).

Potential High Growth in Indonesia’s Telecommunications industry

With a population size of about 220 million people and market penetration rates of just 3.4 per cent for cellular and 2.8 per cent for fixed line, Indonesia is an attractive growth market for telecommunications operators. The investment in Indosat will provide a foothold for ST Telemedia to tap into the tremendous growth potentials of the country’s telecommunications market.

“Our team is looking forward to engaging with Indosat’s management and employees to foster a closer business partnership. We are indeed privileged to be co-workers with Indosat’s vibrant and competent employees. With the firm leadership of Indosat’s current management team and dedicated employees, I’m confident that Indosat will grow to become an equal competitor within and outside Indonesia,” noted Mr. Lee Theng Kiat. “It is our intention to ensure that every Indosat employee will be part of this corporate transformation and benefit from it.”

Goldman Sachs was the advisor to ST Telemedia.