Proposed Disposal of Ozura Sdn Bhd, a Wholly owned Subsidiary of Nextnation Communication Berhad

General Announcement

Reference No CS-091020-83FBF

Company Name	:	NEXTNATION COMMUNICATION BERHAD (ACE Market)
Stock Name	:	NEXTNAT
Date Announced	:	20/10/2009

Type

Announcement

Subject

NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" or "the Company")
- PROPOSED DISPOSAL OF OZURA SDN BHD (“OSB”), A WHOLLY –OWNED SUBSIDIARY OF NEXTNATION COMMUNICATION BERHAD (“NEXTNATION”)

Contents

INTRODUCTION

Nextnation wishes to announce that OSB, a wholly-owned subsidiary of Nextnation has on 20 October 2009 ceased to be a subsidary of Nextnation pursuant to the proposed disposal by Nextnation of its entire equity interest in OSB for a total cash consideration of RM3,830,000 (“Disposal Consideration”)(hereinafter referred to as "Proposed Disposal").

DETAILS OF THE PROPOSED DISPOSAL

Background information on OSB

OSB was incorporated in Malaysia as a private limited company under the Companies Act, 1965 on 8 August 2005. The authorised share capital of OSB is RM100,000.00 comprising of 100,000 ordinary shares of RM1.00 each (“Sale Shares”), of which 100,000 shares have been issued and fully paid-up.

The principal activities of OSB include mobile games, engine or solution developer and provider, as well as mobile games developer and publisher.

The current directors of OSB are Puan Faizatul Ikmi Binti Abd Razak and Mr. See Poh Yee.

Basis of arriving at Disposal Consideration

The Disposal Consideration was arrived at on a willing-buyer willing-seller basis, after taking into consideration OSB's financial position, its latest audited earnings and level of borrowings.

Liabilities to be assumed

Upon the terms and conditions in the Share Sale Agreement ("SSA"), Nextnation shall sell as registered beneficial owner or the lawful attorney of the Sale Shares and RGL shall purchase the Sale Share at the purchase consideration free from encumbrances, subject to encumbrances as reflected in the Audited Accounts of OSB for the financial year ended 30 April 2009 or the Warranties as stipulated in the SSA, together with all rights attached thereto including all dividends, profits and distributions declared, paid or made in respect thereof on or after the date of the SSA.

Details of the Purchaser

Right Grand Limited (“RGL”) having its registered office at Offshore Incorporations (Anguilla) Limited, P.O.Box 850, Offshore Incorporations Centre, The Valley, Anguilla, British West Indies.

RATIONALE FOR THE PROPOSED DISPOSAL

The proceeds from the sale of OSB will provide funds for Nextnation's working capital needs in expanding its Group business operations and activities.

EFFECTS OF THE PROPOSED DISPOSAL

Issued and paid up capital

The Proposed Disposal will not have any effect on the share capital of Nextnation.

Earnings and earning per share

The Proposed Disposal is not expected to have any material effect on the earnings of Nextnation group for the financial year ending 30 April 2010.

APPROVALS REQUIRED

There is no relevant approvals required.

DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTERESTS

Other than Mr. See Poh Yee who is also an Executive Director of Nextnation, none of the directors and/or major shareholders and/or persons connected to the directors and/or major shareholders of Nextnation have any interest, direct or indirect, in the Proposed Disposal.

ESTIMATED TIME FRAME FOR COMPLETION

Barring any unforeseen circumstances, the Proposed Disposal is expected to be completed by 3 December 2009.

This announcement is dated 20 October 2009.