Letter Of Intent With Siemens Malaysia Sdn Bhd

Back Jan 27, 2006
Type Announcement
Subject DIGI TELECOMMUNICATIONS SDN BHD
LETTER OF INTENT WITH SIEMENS MALAYSIA SDN BHD

Contents :


1. INTRODUCTION
The Board of Directors of DIGI.COM BERHAD (“DIGI.COM”, or “the Company”) is pleased to announce that its wholly owned subsidiary, DiGi Telecommunications Sdn Bhd (“DiGi”), had on 27 January 2006 executed a Letter of Intent (LOI) with Siemens Malaysia Sdn Bhd (“Siemens”).
This LOI expresses DiGi’s desire to engage Siemens for the Works (“the Works”) which shall include full turnkey including but not limited to the design, supply, delivery, installation, testing, commissioning, maintenance and support for the implementation of DiGi 3G Network System and Functionality and managed services for operation and maintenance for DiGi 3G Network System and Functionality .
 
2. BACKGROUND INFORMATION/RATIONALE
DiGi had on 11 November 2005 submitted a bid to Malaysian Communication and Multimedia Commission (“MCMC”) for one of the 3G Spectrum blocks. In the event DiGi is assigned the 3G Spectrum, the commencement of the Works from the date of LOI by Siemens will enable DiGi to roll-out certain value-added services to the market in a timely manner.
 
3. TERMS OF THE LOI
In the event that DiGi is not awarded the 3G Spectrum from MCMC, DiGi reserves the right to terminate this LOI and shall not be liable for any costs and expenses related to the Works performed by Siemens.
 
4. FINANCIAL EFFECTS
The LOI will not have any effect on the issued and paid-up share capital of DIGI.COM and the net tangible assets and earnings of DIGI.COM’s Group for the financial year ending 31 December 2006.

However, in the event DiGi is awarded the 3G Spectrum, it is expected to contribute positively to the future earnings and net tangible assets of the DIGI.COM Group.
 
5. INTEREST OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS
None of the Directors or substantial shareholders of DIGI.COM or persons connected to them has any interest, direct or indirect, in the LOI.
 
6. DIRECTORS’ RECOMMENDATION
The Board of Directors of DIGI.COM having considered all the relevant factors in respect of the LOI is of the opinion that the LOI is in the best interest of the Company.
 
7. FURTHER ANNOUNCEMENT
Further announcement will be made in the event the 3G Spectrum is awarded to DiGi and upon execution of the signing of Frame Contract.

This announcement is date 27 January 2006.

Announcement Info

Company Name DIGI.COM BERHAD  
Stock Name DIGI    
Date Announced 27 Jan 2006  
Category General Announcement
Reference No CC-060127-61919