1. INTRODUCTION

Nextnation Communication Berhad ("Nextnation" or “Company”) wishes to announce that PT Elasitas Multi Kreasi ("Elasitas") had on 10 March 2006 accepted its Letter of Intent for the Company or its affiliate to acquire part of the existing ordinary shares of Elasitas from the existing shareholders (“Vendors”) and to subscribe for the new ordinary shares of Elasitas so that the Company or through its affiliate will hold 60% of the enlarged equity interest in Elasitas, subject to other terms and conditions to be agreed upon, for a total cash consideration of IDR7.5 billion (approximately RM3.0 million).

Further details on the Proposed Acquisition will be announced in due course once the Company has executed a Definitive Agreement with the Vendors and/or Elasitas.

2. INFORMATION ON ELASITAS

Elasitas is a private limited company incorporated in Jakarta, Indonesia. The authorised share capital of Elasitas is IDR600,000,000 comprising 600 ordinary shares of IRD1,000,000 each, of which IRD150,000,000 comprising 150 ordinary shares of IRD1,000,000 each have been issued and fully paid-up.

Elasitas is a technology enabler for mobile and Internet industry which focuses on platform development and system integration, provisioning of mobile services and production of creative content and multimedia.

3. RATIONALE FOR THE PROPOSED ACQUISITION

(i) The Proposed Acquisition is expected to bring the synergistic benefits and value creation to the Company and its subsidiaries (“Group”) with Elasitas’ established clientele and partners such as the telecommunication companies, media partners, channel partners, content providers, mobile and technology vendors and corporate organization which would allow the Group to fast track its expansion into Indonesia by tapping onto these existing networks of Elasitas.

(ii) With the advent 3G technology and the growing telecommunication industry in Indonesia, Elasitas is poised to widen its revenue and profitability base in the coming two (2) years.

(iii) The Proposed Acquisition is in line with the principal business activities of the Group and is expected to complement its existing business and enhance the Group's position in relation to the provision of mobile multimedia application services.

(iv) Elasitas has built strong partner and client reference sites. This demonstrates the viability and reliability of its products and services.

4. APPROVAL REQUIRED

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

5. 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 Proposed 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 Proposed Acquisition.

6. DIRECTORS’ STATEMENT

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

This announcement is dated 10 March 2006.