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Taiwan Earthquake SMW3 and APCN final

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Earthquake in Taiwan Causes Service Interference :

Indosat is Continuously Doing Recovery Process

Jakarta, December 27 2006. A major earthquake that measured 7.1 on the Richter scale occurred 10 km beneath the sea in Eastern Taiwan last night, This has caused severe interference to the Submarine Cable Communication System SMW3 (Southeast Asia-Middle East-Western Europe 3) and APCN (Asia Pacific Cable Network). As a result of this several Indosat international services have been affected and are not operating optimally.

The SMW3 Cable system was disconnected near Fengshan Cable Station and Toucheng Cable Station. This has impacted international telecommunication and internet services from Indonesia to USA, Hong Kong, Taiwan, Japan, Canada, Russia, China and Korea and vice versa.

Currently Indosat together with our telecommunication partners in Asia and Pacific are working around the clock to restore these services by rerouting circuits to other unaffected cable systems. We are pleased to report that voice services have been restored. Internet and other data services are still being restored. The restoration of full service will depend on how quickly the rescue crew can reach the affected sites which are still experiencing some tremors.

The Southeast Asia-Middle East- Western Europe 3 is a cable submarine consortium own by carrier companies in Asia-Australia area, Middle East and Europe. The cable which has been operational since early 2000 connect Asia-Australia, Middle East and Europe region along 40.000 km. Indosat became a consortium member in 1997.

The APCN (Asia Pacific Cable Network) is a cable consortium connecting 9 countries in Asia Pacific and Australia and has been operating since 1999. Indosat has been a consortium member since 1994.

Indosat would like to apologize for the inconvenience caused to all our customers due to the earthquake and we would like to assure all our customers that we are doing our best to restore these services as soon as possible.

About Indosat

Indosat Tbk is a leading telecommunication and information service provider in Indonesia that provides cellular services (Mentari, Matrix and IM3), IDD service (IDD 001, IDD 008 and FlatCall 016), fixed telecommunication services (StarOne, I-Phone). Indosat also provides Multimedia, Internet & Data Communication Services (MIDI). Indosat's shares are listed in the Jakarta and Surabaya Stock Exchange (JSX:ISAT) and its American Depository Shares are listed in the New York Stock Exchange (NYSE:IIT).

For further information please contact :

Adita Irawati,

Division Head Public Relations Telp : 62-21-3869625

Fax : 62-21-3812617

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