TNM | Cautionary Statement Update

Telekom Networks Malawi Limited (TNM) wishes to advise its shareholders and the general public that the Company has finalised the negotiations and entered into a Transaction agreement, to acquire the ISP business and related assets of Burco Electronic Systems Limited with the objective to use these assets to establish the TNM Business Services Division.

The Transaction is subject to obtaining the approval from the Competition and Fair Trade Commission of Malawi and the shareholders will be informed of further developments as and when required.

The Transaction will not be significant in the context of the annual TNM infrastructure investments for 2014.

Shareholders are therefore advised to exercise caution in dealing in their shares in the Company until a further announcement is made.

CHAIRMAN OF THE BOARD

11th December 2014