News

TeleChoice International Limited Launches Initial Public Offering Of 112 Million Shares At S$0.29

IPO to raise approximately S$32.48 million

Singapore, 16 June 2004

TeleChoice International Limited ("TeleChoice"), a regional provider of mobile telecommunications equipment and solutions, today announced the launch of the initial public offering ("IPO") of its shares (the "Invitation Shares") in connection with a proposed listing on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX-ST"). A prospectus, dated 16 June 2004, relating to the offering (the "Prospectus") has been registered by the Monetary Authority of Singapore ("MAS").

The Public Offer will commence on Thursday 17 June 2004 and is expected to close on Wednesday 23 June 2004. Trading of the Invitation Shares on the Mainboard of the SGX-ST on a "when issued" basis is expected to commence on Friday 25 June 2004. The actual date will be announced when it is confirmed by the SGX-ST.

At the price of S$0.29 per Share, the IPO will raise a total of S$32.48 million. TeleChoice intends to use the net proceeds raised from its issue of new Shares to support its expansion plans in Indonesia, Malaysia, Australia and Thailand; to establish new operations facilities for logistics, warehousing services and network switching centre(s) in Singapore; to upgrade its local and regional IT and network infrastructure; and for working capital purposes.

Mr Clive Lim, President and Executive Director of TeleChoice, said, "The TeleChoice IPO not only marks an important milestone in our corporate history but also signifies a new phase of the Company's growth. Given the enhanced corporate visibility, funding and ability to leverage on the regional network and expertise of our strategic shareholder, Singapore Technologies Telemedia Pte Ltd, we believe we are well-positioned to further our expansion in the Asia-Pacific region."

Incorporated in Singapore in 1998, TeleChoice is a subsidiary of Singapore Technologies Telemedia Pte Ltd ("ST Telemedia"), a leading information-communications company with operations in Asia Pacific, the Americas and Europe. TeleChoice provides a diverse range of telecommunications equipment and solutions to different segments of the telecommunications industry, which includes mobile network equipment providers, mobile network operators, enterprises and retail customers. In addition, it offers international long-distance call services under "SunPage iDD 1521" and "SunPage International Calling Card" , as well as mobile network and engineering services and solutions.

Mr Lee Theng Kiat, President and Chief Executive Officer of ST Telemedia, said, "ST Telemedia is pleased that TeleChoice, one of our home-grown companies, has demonstrated its potential to move into the next phase of its corporate development through the IPO launch. As TeleChoice's strategic shareholder, we intend to work with the Company to ensure its long-term success. We see growth opportunities in the telecommunications industry, especially in the growing markets of Indonesia and Thailand. Coupled with ST Telemedia's regional network and expertise, TeleChoice is well-placed to tap on the market momentum as they expand into the region."

Mr Lim said, "TeleChoice has maintained steady growth and profitability over the years and has gained leadership position in several of our businesses. We are the leading provider of public mobile data network services. As at December 2003, we have approximately 90% of the market share in Singapore for our public mobile data services. In addition to our distribution and mobile data services, we also provide long-distance call services under "SunPage iDD 1521" .

Business Strategy & Future Plans

The market growth potential for mobile phones in growing markets such as Indonesia and Thailand is relatively high, fuelled by rising affluence and economic growth. These markets are characterised by relatively higher demand for basic mobile communications devices and services such as voice capability and basic data services such as SMS. In mature markets such as Singapore, Australia and Malaysia, which are characterised by relatively high levels of income and earlier adoption of new technologies and innovation, there tends to be relatively higher demand for higher-end mobile equipment with advanced features.

Mr Tay Kiong Hong, Senior Vice-President of TeleChoice, said, "TeleChoice's ability to benefit from the increasing demand for mobile handsets and telecommunication services in both the growing and mature markets, is strengthened by our regional distribution network and established relationships with our principals."

"Currently, we have overseas operations in Indonesia, Malaysia and Australia and have established a presence in Thailand and the Philippines. In February this year, we entered into a joint venture agreement with an Indonesian entity to distribute pre-paid SIM cards starter packs and top-up vouchers for SIM cards in Indonesia. We have also recently signed an agreement with a Thai entity to resell Voice-Over-Internet Protocol (VOIP) and local domestic long-distance call services in Thailand," Mr Tay added.

"Moving forward, we will also explore expansion into new and growing markets such as India and countries in the Indo-China region, and to capitalise on any opportunities which may result from the deregulation of the telecommunication industries in the region."

DBS Bank is the Manager, Underwriter and Placement Agent for this initial public offering.

Copies of the Prospectus, together with the application forms, may be obtained on request, subject to availability, during office hours from DBS Bank Ltd, 6 Shenton Way #36-01,DBS Building Tower One, Singapore 068809 and from DBS Bank branches (including POSB), and where applicable, members of the Association of Banks in Singapore, members of the SGX-
ST and merchant banks in Singapore. A copy of the prospectus is also available on the SGX-ST website at http://www.sgx.com; and MAS' website at http://masnet.mas.gov.sg/opera/sdrprosp.nsf.Anyone wishing to subscribe for or purchase the Invitation Shares will need to make an application in the manner set out in the Prospectus. Full details of the application procedures are set out in the Prospectus.

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About TeleChoice International Pte Ltd

Incorporated in Singapore on 28 April 1998, TeleChoice International Limited ("TeleChoice") is a regional provider of mobile telecommunications equipment and solutions. The company is a subsidiary of Singapore Technologies Telemedia Pte Ltd ("ST Telemedia"), a leading information-communications company with operations in Asia-Pacific, the Americas and Europe.

TeleChoice provides a diverse range of equipment and solutions to different segments of the telecommunications industry, which include mobile network equipment providers and mobile network operators, enterprises and retail customers requiring mobile handsets and accessories. In addition, it also offers telecommunication services such as international long-distance call services and mobile network and engineering services and solutions.

Headquartered in Singapore, TeleChoice has operations in the Asia-Pacific region, including Indonesia, Australia and Malaysia and has established a presence in Thailand and the Philippines.

Its customers and principals include StarHub Pte Ltd and PT Indonesian Satellite Corporation Tbk, and Mitsubishi, Motorola, Nokia, Samsung and Sony Ericsson respectively.

For more information, please visit our website at www.telechoice.com.sg

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For more information, please contact:

Media Contact

Ng Chip Keng
Weber Shandwick Worldwide
Tel: +65 6825 8084, Mobile: +65 9623 2166, Email: ckng@webershandwick.com

Lim Siew Yin
Weber Shandwick Worldwide
Tel: +65 6825 8083, Mobile: +65 9858 4673, Email: sylim@webershandwick.com