Contents :

1. INTRODUCTION

The Board of Directors of Nextnation Communication Berhad ("Nextnation" or “Company”) wishes to announce that Nextnation Network Sdn. Bhd. (“NNSB” or “the Purchaser”), a wholly-owned subsidiary of Nextnation had on 25 July 2007 entered into sale and purchase agreements (“SPAs”) with Crimson Attraction Sdn. Bhd. (“the Developer”) and Crimson Commercial Park Sdn. Bhd. (“the Proprietor”) to acquire two (2) units of five-storey Shop Offices (Enbloc) i.e. Unit/Lot No. A-05 and A-06 held under freehold land of H.S.(D) 166471, PT 17492 and H.S.(D) 166472, PT 17493 (“the Said Land”) respectively, both in the Mukim of Damansara, District of Petaling, State of Selangor Darul Ehsan (“Properties”) for a total cash consideration of RM3,977,600/- (“the Acquisition”).

NNSB is a private limited company incorporated under the Companies Act, 1965 and has its registered office at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur. NNSB is principally engaged in the business of programming services, software development, internet consulting and provision of information technology services.

2. DETAILS OF THE ACQUISITION

The Properties, both measuring approximately 156 square metres each are the five (5) storey shop office comprised in the commercial development on the Said Land and several other lands known as NZX Commercial Centre (formerly known as “Crimson Damansara”). These Properties are earmarked for the Nextnation and its subsidiaries (“Nextnation Group”) corporate office.

The Properties are to be purchased free from all encumbrances but subject to all conditions on the title whether expressed or implied and restrictions in interest affecting the Said Land and/or the individual issue document of title to the Properties and subject to the terms and conditions of the SPAs.

The purchase consideration of the Acquisition of RM3,977,600/- was derived at based on willing buyer-willing seller basis after taking into consideration its strategic location.

Pursuant to the SPAs, the purchase considerations of the Properties shall be settled in the following manner:-

a) 20% of purchase considerations or RM795,520 – immediately upon the signing of

b) 80% of purchase considerations or RM3,182,080 – within 30 days after the receipt

by NNSB of the notice of

3. INFORMATION ON THE DEVELOPER AND PROPRIETOR

Crimson Attraction Sdn. Bhd. (Company No. 478209-H) and Crimson Commercial Park Sdn. Bhd. (Company No. 315973-V) are private limited companies incorporated in Malaysia under the Companies Act, 1965 both having its registered address at Lot 6-001, 6th Floor, Endah Parade, No. 1, Jalan 1/149E, Bandar Baru Sri Petaling, 57000 Kuala Lumpur.

4. RATIONALE FOR THE ACQUISITION

Currently, the Nextnation Group operates from a few different offices.

The Acquisition would enable Nextnation Group to set up a new research and development facilities, and also to operate and expand effectively in a central office.

5. SOURCES OF FUNDING

The Purchase Consideration will be satisfied from internally generated funds and by bank borrowings. The breakdown of the sources of funding for the Acquisition is 20% from internally generated funds and 80% from bank borrowings.

6. LIABILITIES TO BE ASSUMED

The Nextnation Group will not assume any liabilities arising from the Acquisition.

7. EFFECT OF THE ACQUISITION

7.1 Share Capital and Substantial Shareholders’ Shareholdings

The Acquisition will not have any effect on the issued and paid-up share capital of Nextnation and its substantial shareholders’ shareholdings.

7.2 Earnings and Net Assets

The Acquisition is not expected to have any material impact on the earnings and net assets of the Nextnation Group for the financial year ending 30 April 2008.

7.3 Gearing

The proforma effects of the Acquisition based on the audited consolidated financial statements of the Nextnation Group as at 30 April 2006 are set out in Table 1 as attached.

8. APPROVAL REQUIRED

The Acquisition does not require the approval of the shareholders of the Company or any authorities.

9. DEPARTURE FROM THE GUIDELINES OF THE SECURITIES COMMISSION (“SC”)

To the best knowledge of the Board, there is no departure from the SC Guidelines for the MESDAQ Market in relation to the Acquisition.

10. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS

None of the Directors of the Company or persons connected to them has any interest, direct or indirect, in the Acquisition. The Directors of the Company are not aware of any substantial shareholders of the Company or persons connected to them who has any interest, direct or indirect, in the Acquisition.

11. DIRECTORS’ STATEMENT

Taking into consideration the rationale for the Acquisition, the Board of Directors of the Company is of the opinion that the Acquisition is in the best interest of the Company.

12. ESTIMATED TIMEFRAME

Barring any unforeseen circumstances, the Developer shall deliver vacant possession of the properties within Thirty-Six (36) months from the date of the SPAs.

13. DOCUMENT AVAILABLE FOR INSPECTION

The SPAs will be made available for inspection at the Registered Office of the Company at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur during normal business hours from Monday to Friday (except public holidays) for a period of one (1) month from the date of this announcement.

This announcement is dated 25 July 2007.